Julius Berger Nigeria PLC (NGX: JBERGER), has announced the successful completion of its ₦30 billion Series 1 and 2 Commercial Paper (CP) issuance which is the Company’s debut issuance in Nigeria’s fixed income market.
The company said that its CP issuance was 2.3x subscribed, showing significant demand from a wide range of investors including pension fund administrators, asset managers, insurance companies, banks and high net-worth individuals.
The CP issuance comprised two tenors – a 182-day Series 1 issuance which priced at a 14.00% yield and a 267-day Series 2 issuance which was priced at a 15.00% yield.
Julius Berger said that “the proceeds of the CP Issuance will be used for the purpose of supporting 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 (“Stanbic IBTC Capital”) acted as Lead Arranger/Issuing and Placing Agent (“IPA”) while FCMB Capital Markets Limited (“FCMB Capital Markets”) acted as Joint Arranger/IPA.
Commenting on the significance and success of the CP Issuance, Dr. Lars Richter, the Managing Director, said: “Julius Berger is delighted to have successfully completed its debut CP Issuance in the Nigerian fixed income market.
“This is truly a testament to the Company’s strength, the sustainability of its brand and the level of confidence Nigeria places in the Company’s services.
“It is without doubt that the success of this issuance provides an avenue to optimize our funding cost while continuing to drive our strategic initiatives as an organisation. We are pleased by the success of the CP Issuance and grateful to the investor community for supporting the transaction.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
