- Dangote cement, MTN other big companies raised over N200 billion through commercial papers in 2 months.
- The funds raised from high-net-worth and institutional investors will finance the companies’ operations and expansion plans
- The successful fundraising indicates a strong investor appetite for investments in Nigerian companies
Dangote and several other major Nigerian companies have raised N245 billion in just the first two months of 2023 by issuing commercial papers to investors.
The commercial papers were sold to institutional investors, high-net-worth individuals, and other corporate entities.
The issuance of commercial papers is a common way for companies to raise short-term funds from investors as an alternative to loans to raise capital.
It’s typically used to finance short-term liabilities such as payroll, accounts payable, and inventories.
TopLatestNews tracked the likes of Dangote Cement, Zenith Bank, Nigerian Breweries, MTN Nigeria, FSDH Merchant Bank Limited were among the firms that raised funds through this method.
DLM Capital Group Limited and Julius Berger also utilised the platform to raise capital.
Breakdown of commercial papers raised by companies
Below is a compilation of deals announced in January and February. The information was sourced from news reports and press releases, amongst other reliable sources.
Dangote Cement issued N50 billion Commercial Paper
Dangote Cement raised N50 billion through the issuance of Commercial Paper (CP) under its N150 billion commercial paper programme.
The exercise began on Monday, January 30, 2023 and concluded on Thursday, February 2, 2023.
The funds raised are intended for financing the company’s working capital needs and for general corporate objectives.
Dangote Cement the debt repayment will be matured in two tranches 183 days and 267 days.
Nigerian breweries also raised N20bn
Nigerian Breweries also raised N20 billion from the debt market to meet its cash demands in three series.
Punch reports that the repayment date for series 1 would be for a tenor of 91 days, Series 2 would be for 120 days, and Series 3 would be for 154 days.
Other companies that raised funds via commercial paper Jan-Feb
- MTN Nigeria- N125 billion
- FSDH Merchant Bank Limited- N15 billion
- DLM Capital Group Limited- N5 billion
- Julius Berger- N30 billion
Rabiu brothers make over N110bn in 8 hours, as the company’s market value soars
Meanwhile, in another report, Abdul Samad Rabiu and his brother Kabiru Rabiu, who co-own BUA Foods Plc, saw their fortune grow as their firm’s market value boomed.
The market value of BUA Foods, which is part of the BUA Group, increased by N119 billion due to a significant rise in the company’s share price.
The Rabiu brothers are the largest shareholders of BUA foods, hence the increase in the firm’s market value made them over N110 billion in 8 hours of trading.
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