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Julius Berger concludes N30 billion commercial paper issuance

Julius Berger concludes N30 billion commercial paper issuance

Julius Berger Nigeria Plc has announced the completion of its N30 billion Series 1 and 2 Commercial Paper (CP) issuance.

The company announced this in a corporate disclosure it sent to the Nigerian Exchange Limited, as seen by Nairametrics.

Over-subscribed commercial paper: According to the statement which was signed by Company Secretary Mrs Cecilia Madueke, the commercial paper issuance was over-subscribed, demonstrating strong investor confidence in the company.

The statement added that the issuance attracted significant demand from a wide range of investors including pension fund administrators, asset managers, insurance companies, banks and high-net-worth individuals.

The company noted that the CP Issuance comprised two tenors – a 182-day Series 1 issuance which was priced at a 14.00% yield and a 267-day Series 2 issuance which was priced at a 15.00% yield.

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Plan for the CP proceeds: Julius Berger further stated that the proceeds of the CP issuance will be used to support Julius Berger’s short-term working capital and funding requirements, thus further strengthening its competitive advantage in the construction sector in Nigeria and its financial flexibility as the Company implements its strategic initiative to diversify into economically significant sectors starting with the launch of its cashew processing business.

Stanbic IBTC Capital Limited acted as Lead Arranger/Issuing and Placing Agent while FCMB Capital Markets Limited acted as Joint Arranger/IPA.

Commenting on the significance and success of the CP Issuance, Dr Lars Richter, the Managing Director, said:

Also commenting on the successful debut issuance, Funso Akere, Chief Executive of Stanbic IBTC Capital, said:

 

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