MKH properties’ ₦10bn series 1 commercial paper oversubscribed as investor demand exceeds target

MKH Properties Limited has announced the successful close of Series 1 of its Commercial Paper Programme, with investor subscriptions exceeding the ₦10 billion issue size.

The successful completion of the first series marks a significant milestone for the Nigerian real estate developer, coming shortly after the company formally launched its ₦30 billion Commercial Paper Programme in September.

Series 1 was issued for a 364-day tenor, with a 25.0001% yield, 20.0110% discount rate and a minimum subscription of ₦5 million. The programme was structured by Pathway Advisors Limited, which served as financial adviser and lead arranger.

The oversubscription means that investor demand exceeded the ₦10 billion the company set out to raise in the first series.

For MKH Properties, however, the significance of the transaction goes beyond the amount raised.

A significant first step into the commercial paper market

The successful close represents MKH Properties’ first completed series under its ₦30 billion Commercial Paper Programme and provides the company with another structured avenue for financing its growth.

Commercial paper has increasingly become one of the funding routes available to businesses looking to access short-term capital outside conventional bank lending. Against that backdrop, MKH Properties’ ability to close its debut series above the ₦10 billion target represents an important achievement for the company and its growing capital markets ambitions.

Dr Muibi Kehinde Hammed, Chief Executive Officer of MKH Properties, described the outcome as a milestone for the business.

“Completing our first Commercial Paper Series and receiving subscriptions above the ₦10 billion target is no small achievement for MKH Properties. We understand the level of responsibility that comes with accessing the capital market, particularly as a real estate company. This milestone tells us that investors are willing to back our vision, and we are deeply grateful for that confidence.”

From investor confidence to project delivery

The purpose of the Commercial Paper Programme is ultimately tied to the company’s expansion plans and its ability to execute more projects.

The capital raised through the programme will support business expansion and strengthen its capacity to deliver projects across its portfolio. The company’s current portfolio includes developments across Lagos and Ibadan, with projects such as MKH City, Chelmsford City, Dariann Court, The Legacy, The Wealthy Place and MKH Shopping Mall.

For existing customers and investors, the successful Series 1 close therefore represents more than a capital market milestone. It is expected to translate into increased capacity for development and expansion.

Dr Muibi Kehinde Hammed said the company remains conscious of the trust placed in it by both its existing customers and the investors who participated in the Commercial Paper.

“We appreciate everyone who has invested in our existing projects and everyone who believed enough in MKH Properties to participate in Series 1. The purpose of raising this capital is clear. We want to expand, strengthen our operations and deliver more projects. We will ensure that the confidence placed in us translates into execution, successful projects and lasting value for our stakeholders.”

A vote of confidence in MKH Properties’ next phase

The successful Series 1 close has strengthened its confidence in the next phase of its growth.

The company has previously stated that the ₦30 billion programme is intended to expand the horizon of its business, with management indicating that future capital raises could be larger.

The company has grown its operations across Lagos and Ibadan and currently lists residential and commercial developments across its portfolio. It has also allocated more than 1,000 plots across 12 estates and manages a portfolio exceeding $50 million.

With Series 1 now completed and oversubscribed, the focus shifts from raising capital to deploying it effectively.

For MKH Properties, the achievement is both a celebration and a commitment: to the investors who participated, the customers who have backed its projects and the stakeholders who will ultimately measure the success of the programme by what gets built and delivered.