CIG Motors Company Limited has unveiled a N30 billion Series 2 Commercial Paper issuance under its N100 billion Commercial Paper Programme as the company intensifies efforts to expand its integrated mobility operations across Nigeria.
The development was disclosed in a statement seen by Nairametrics on Monday, May 25, 2026.
According to the company, the offer is open to both institutional and retail investors and is scheduled to close on Monday, May 25, 2026.
What the statement is saying
According to the statement, the commercial paper issuance is divided into two tranches with different tenors and returns for investors.
- Tranche A has a tenor of 272 days and offers a discount rate of 18.53% with an implied yield of 21.50%.
- Tranche B has a tenor of 364 days and comes with a discount rate of 19.53% and an implied yield of 24.25%.
The company stated that the minimum subscription amount is N5 million, with additional investments accepted in multiples of N1,000.
The funding date has been fixed for Tuesday, May 26, 2026.
- “Proceeds from the issuance will be used for inventory financing, working capital optimisation, operational expansion, and broader mobility infrastructure development across Nigeria.”
Get up to speed
The Series 2 issuance follows the full redemption of the company’s N10.2 billion Series 1 Commercial Paper, which CIG Motors said demonstrates its ability to manage institutional capital and meet debt obligations effectively.
The company’s latest financial disclosures showed revenue of N177.4 billion, EBITDA of N35.3 billion, and profit after tax of N17.3 billion.
These figures form a major part of the investor presentation supporting the new issuance, with company executives describing them as evidence of successful operational scaling and disciplined financial management.
More insights
United Capital Plc is serving as the Primary Issuing House for the transaction, while Cordros Capital Plc and Rand Merchant Bank are acting as Joint Issuing and Placing Agents.
The receiving banks for the issuance are Wema Bank Plc, Access Bank Plc, and Providus Bank.
The commercial paper programme received an A1 short-term and A long-term rating from DataPro Limited, while Agusto & Co. assigned it an A2 short-term and Bbb long-term rating.
Chairman Diana Chen described the transaction as a strong vote of confidence in both Nigeria’s economic outlook and the company’s long-term growth strategy.
Group Chief Financial Officer Ram Murugesan said the company’s financial performance reflects a deliberate platform-building strategy driven by disciplined leverage management and expanding operational capacity.
Also speaking on the issuance, Gbadebo Adenrele said the successful redemption of Series 1 had strengthened the company’s credit profile within Nigeria’s capital market.
According to him, United Capital’s support for the Series 2 issuance was based on the company’s demonstrated execution capability and financial discipline.
What you should know
In 2024, Babajide Sanwo-Olu oversaw the signing of a joint venture agreement between IBILE Holdings Limited and CIG Motors Company Limited.
The partnership involved the acquisition of 5,000 new vehicles for the Lagos Ride (LAGRIDE) fleet, with an estimated investment of $260 million into the Lagos economy.
The initiative is aimed at developing an integrated urban transportation system and replacing ageing vehicles currently used across the state’s transport network.
