Zeenab Foods Ltd Signs Commercial Paper Issuance Programme approved by FMDQ

Folalumi Alaran in Abuja

Zeenab Foods Limited, a leading food processing and agro-commodity trading company in Nigeria, has signed a N20 billion Commercial Paper (CP) Issuance Programme on the Financial Market Dealers Quotation (FMDQ) Securities Exchange Limited.

The Board Listings and Markets Committee of the FMDQ Securities Exchange approved the CP Programme.

The signing ceremony occurred on July 2, 2024, at the company’s corporate head office in Abuja.

The event was attended by key stakeholders, including Pathway Advisors Limited (Financial Adviser and Transaction Sponsor), Polaris Bank Limited (Collecting and Paying Agent), Greychapel Legal (Transaction Solicitor), and ATC Professional Services (Auditor to the Issuer).

According to Dr Victor O. Ayemere, MD/CEO of Zeenab Foods Limited, the Commercial Paper program will position Zeenab Foods to navigate the financial landscape of the agro-commodities sector, ultimately leading to enhanced growth opportunities and sustainable success in the market.

“It will also aid in meeting the company’s short-term capital and funding needs, ultimately allowing for a broader range of funding options and creating additional value for stakeholders. The proceeds from the CP issuance will be specifically used to purchase rice paddy and enhance value addition to other agro-commodities before export,” Ayemere said.

He expressed gratitude to Pathway Advisors Limited, the Financial Adviser and Transaction Sponsor, for their efforts in ensuring the successful approval of the CP Programme.

Mr. Adekunle Alade, CEO of Pathway Advisors Limited said: “Pathway Advisors Limited is pleased to have advised Zeenab Foods Limited on the establishment of its inaugural N20 billion CP issuance programme, which will enable the Company to access competitively priced short-term funding from institutional investors.

“It will also provide a platform for the company to diversify sources of debt funding to include non-bank investors, thereby increasing resources available for strategic planning while also reducing the average cost of borrowing.”