Emerging Africa Records 100% Subscription in Series 1 & 2 CP Program
Kayode Tokede
Emerging Africa Capital yesterday announced the successful completion of its debut Commercial Paper (CP) issuances with a 100per cent subscription rate.
This impressive subscription level demonstrates investors’ confidence in the company’s impressive profile and the ability of its management team to deliver value to its stakeholders.
The company set out to raise N3 billion (“Series I – 182 days and Series II – 269 days CP Issuances) under its N15 billion CP Programme recently registered with FMDQ Securities Exchange Limited.
According to the company, the CP was fully subscribed to by Qualified Institutional Investors including asset managers, trustees, Insurance companies and stockbrokers.
Commenting on the programme, the Executive Vice Chairman/Group Chief Executive Officer of Emerging Africa Capital, Toyin F. Sanni in a statement said: “I am very delighted with the overall outcome of the CP Issuance particularly given the caliber of investors that subscribed to the Issuance.
“It is my view that the continued issuance of subsequent series under the N15 billion CP will support Emerging Africa’s strategic intent to build a long and credible track record of accessing funding from the Nigerian debt capital market.
“I thank the FMDQ for its thoroughness and the dealers and investors who contributed to the success recorded in the Company’s Series I and Series II CP Issuances”.
In addition, the Group CFO, Emeka Anazodo, in a statement said “I am pleased that the Offer attracted considerable investor interest, and achieved a 100per cent subscription rate despite low market liquidity and less – than favorable general market conditions experienced in the second half of 2022.”
He noted that funds from the Commercial Paper Issuance would enable the company to diversify its financing mix and fund its short-term working capital requirements”.
Emerging Africa Capital Advisory Limited acted as Lead Arranger & Dealer whilst Afrinvest Capital Limited, Coronation Merchant Bank, Nova Merchant Bank and United Capital Plc were Joint Arrangers on the debut commercial paper transaction.
