God Made Homes (GMH) Limited, a Lagos-based company, has agreed to provide homes for Nigerians through a N5,000,000,000 Commercial Paper (CP) deal with Qualinvest Capital Limited, Pathway Advisors Limited, and six other professional parties.
Commercial paper is an unsecured form of promissory note that pays a fixed rate of interest. It is typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.
The other six parties include Keystone Bank, Ferdinand Eze & Co., the issuer’s auditor, and Dupont Capital Advisory Limited. The new practices include trustees, Chariots and Spirit LP as solicitors to the issuer; and STL Trustees Limited as solicitors to the transaction.
Speaking during the signing of the contract, GMH Chief Executive Officer Ayoolanrewaju Joseph said the fund will make sure the company completes projects on time and to specifications.
Joseph said: “Funding has been a major issue in the real estate finance sector. This will help to reduce our cost overrun in the long run by having enough capital to purchase finishing materials.”
He added that Keystone bank will offer the guarantee for the CP and that the issuing houses are Qualinvest capital limited and Pathway advisors limited.
According to Joseph, the company has covered more than 70 dwelling units in its seven years of operation.
Akin Oni, a representative of STL Trustees Limited, stated that STL will function as the transaction’s trustee and that keystone bank has secured and supported the CP.
“CPs are not long tenure districts, but depending on when it is given, it probably won’t be more than 270 days,” Oni added. Given its size of N5 billion, it won’t be provided all at once; instead, it will be released in segments as the market demands.
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