VFD Group PLC has launched a N15 billion Series 1 (Tranche A & B) Commercial Paper issuance under its N50 billion Commercial Paper Issuance Programme.
This issuance marks the Issuer’s return to the Nigerian short-term debt market, building on its established commercial paper programme under which it has raised and redeemed multiple series in recent years.
The offer opened on Monday, February 16, 2026, and is scheduled to close on Thursday, February 19, 2026.
What the offer circular is saying
- Issuer: VFD Group PLC
- Programme Size: N50 billion Commercial Paper Issuance Programme
- Series: Series 1 (Tranche A and Tranche B)
- Tenor: Tranche A: 270 days; Tranche B: 364 days
- Discount Rate (per annum): Tranche A: 18.5498%; Tranche B: 19.0383%
- Implied Yield (per annum): Tranche A: 21.5000%; Tranche B: 23.5000%
- Issue/Settlement Date: Friday, February 20, 2026
- Maturity Date: Tranche A: Tuesday, November 17, 2026; Tranche B: Friday, February 19, 2027
- Minimum Subscription: Minimum of N5,000,000 and multiples of N1,000 thereafter
- Tax Consideration: Applicable taxes shall apply on the instrument, except otherwise exempt
- Use / Source of Repayment: Repayment of all obligations under the CP issuance will be funded from the cash flows of VFD Group PLC
- Quotation: FMDQ Securities Exchange Limited
The Company behind the offer
VFD Group PLC was incorporated in 2009 and listed on NGX on October 6th, 2023.
The company, a proprietary investment company, provides alternative funding and investment channels accessible to individuals, small businesses, and operators in Nigeria and Ghana.
VFD Group has grown into a cross-border investment firm with a presence in Sub-Saharan Africa, the UK, and the US.
It has expanded across sectors through collaboration and responsible leadership, building a diverse portfolio of companies focused on real-world impact and positive change.
What you need to know
The commercial paper offers implied annual yields of 21.50% for Tranche A (270 days) and 23.50% for Tranche B (364 days).
These yields represent a competitive risk premium relative to short-term government securities and are also attractive when compared with yields available on similar commercial paper issuances in the market.
The investment case is anchored on VFD Group’s operating performance and cash flow generation. The company stated that repayment is expected to be funded from its operating cash flows.
In 2025, the group returned a profit after tax of N9.68 billion, up from N8.69 billion in 2024, representing 11.38% YoY, but lower than its 3-year growth rate.
On cash flow, the group generated N85.2 billion in operating cash flow in 2025, representing a 336.9% year-on-year increase and a marked improvement on its recent history.
This sharp rebound strengthens the case that near-term obligations, including the commercial paper, can be serviced from internally generated cash rather than new borrowing.
However, the key issue is how comfortably operating profit covers financing costs. Despite operating profit exceeding interest expenses in both 2025 and 2024, a large share of earnings is still being absorbed by interest costs, leaving a relatively thin buffer.
The company’s interest coverage ratio stands at about 1.3 times in both years, indicating limited headroom if earnings soften or funding costs rise.
At the balance sheet level, total borrowings declined to N112.33 billion in 2025 from N121.43 billion in 2024, signaling some deleveraging.
However, a large portion of this debt remains in commercial notes and private placements at about N61.04 billion. While this is lower than the roughly N112 billion recorded in 2024, the group remains heavily reliant on market-based funding, keeping refinancing and interest-rate risk firmly in focus for investors.
That said, VFD Group is rated A+ (long term) and A1 (short term) by DataPro, with a stable outlook, indicating low risk and good credit quality, which provides some comfort around its capacity to meet near-term obligations.
The bottom line
This is a high-yield, short-tenor instrument backed by a recent surge in cash flows and an investment-grade domestic rating, but one that still requires investors to be comfortable with thin interest cover and ongoing reliance on market funding.
For yield-seeking investors with a tolerance for issuer risk, the pricing looks compelling; for more conservative investors, the key watchpoint remains in cash flow sustainability and funding structure.
