Agro-Eknor, a leading agribusiness powerhouse, has successfully debuted it’s N5 billion commercial paper issuance programme on FMDQ.
This landmark transaction, facilitated by United Capital Plc, provides Agro-Eknor with strategic funding to expand its export operations, enhance supply chain efficiency, and unlock greater value for Nigeria’s agricultural sector.
The signing ceremony, held at United Capital Plc, Afriland Towers, Lagos, brought together industry leaders, financial experts, and key stakeholders to celebrate this groundbreaking financial milestone.
The success of the issuance reflects growing investor confidence in Nigeria’s agribusiness sector and highlights the increasing role of alternative financing solutions in supporting sustainable economic development.
Empowering Growth: How Agro-Eknor’s N5 Billion Funding Will Transform Agribusiness
The proceeds from this N5 billion issuance will be deployed to:
- Scale Agro-Eknor’s Export Operations: Strengthening Nigeria’s competitive edge in global agricultural trade.
- Enhance Supply Chain Efficiency: Improving logistics, processing, and distribution networks.
- Support Smallholder Farmers: Expanding partnerships to boost productivity and profitability in the agricultural value chain.
- Drive Economic Growth: Creating jobs, increasing foreign exchange earnings, and positioning agribusiness as a catalyst for national development.
Speaking on the significance of this financing, Mr. Timi Oke, CEO of Agro-Eknor, stated:
“This commercial paper issuance is a testament to Agro-Eknor’s financial strength, credibility, and unwavering commitment to revolutionizing agribusiness in Nigeria. The success of this transaction underscores the confidence investors have in our vision and the resilience of Nigeria’s agricultural sector. By leveraging structured financing, we are accelerating our expansion, empowering farmers, and creating long-term value for the economy.”
Strengthening Nigeria’s Capital Market Through Agribusiness Investment
The commercial paper was arranged and placed by United Capital Plc, a leading financial institution renowned for its expertise in capital market transactions. This successful issuance marks a pivotal moment for Nigeria’s debt capital market and agribusiness sector, showcasing the growing appetite for investments in non-oil industries.
By leveraging structured financing, Agro-Eknor has set a model for how agribusinesses can access the capital market for expansion, reducing reliance on traditional bank loans and unlocking new funding opportunities. This issuance further underscores the increasing sophistication of Nigeria’s capital market, providing investors with high-quality, asset-backed opportunities in the agribusiness sector.
Setting a Benchmark for Future Agribusiness Financing
Agro-Eknor’s ability to secure capital through the commercial paper market signals a transformational shift in how agribusinesses can access funding. This transaction sets a benchmark for:
- More agribusinesses leveraging capital market instruments for growth.
- Greater investor participation in Nigeria’s agricultural value chain.
- Enhanced financial inclusion for agribusinesses seeking non-traditional funding options.
This successful issuance is expected to encourage more agricultural enterprises to explore capital market financing as a means to scale operations and increase economic impact.
Key Partners in the Transaction
The successful execution of Agro-Eknor’s N5 billion commercial paper issuance was made possible by strategic partnerships with top-tier financial and legal institutions:
- Arranger & Placing Agent: United Capital Plc
- Auditors to the Issuer: Grant Thornton
- Bankers: United Bank for Africa (UBA)
- Solicitors: Udo Udoma & Bello Osagie
These partnerships reinforce the credibility, governance, and financial integrity of the transaction, ensuring transparency and investor confidence.
About Agro-Eknor
Agro-Eknor is a leading agribusiness company dedicated to sustainable agricultural production, exports, and value chain transformation.
With a strong reputation for delivering high-quality Nigerian produce to global markets, the company is at the forefront of economic empowerment, food security, and agricultural innovation.
Through strategic partnerships, advanced financing solutions, and an unwavering commitment to excellence, Agro-Eknor is reshaping Nigeria’s agricultural landscape and positioning agribusiness as a pillar of national development.
