The offer runs for two tranches with different maturities and returns. Tranche A carries a tenor of 272 days with a discount rate of 18.53% and an implied yield of 21.50%. 

Tranche B runs for 364 days, with a discount rate of 19.53% and an implied yield of 24.25%.

The minimum subscription is N5 million, while additional investments come in multiples of N1,000. The offer closes on Monday, May 25, 2026, with the funding date set for Tuesday, May 26, 2026.

The company said proceeds will go into core operational needs and also listed inventory support and wider expansion plans. 

In its disclosure, it stated: “Proceeds from the issuance will be used for inventory financing, working capital optimisation, operational expansion, and broader mobility infrastructure development across Nigeria.”

United Capital Plc is the lead issuing house for the transaction. Cordros Capital Plc and Rand Merchant Bank act as joint issuing and placing agents. Wema Bank Plc, Access Bank Plc and Providus Bank serve as receiving banks.

Credit rating agencies assigned investment-grade ratings to the programme. DataPro Limited gave it an A1 short-term rating and an A long-term rating. Agusto & Co. assigned an A2 short-term rating and a Bbb long-term rating.

CIG Motors returned to the market after completing full redemption of its N10.2 billion Series 1 commercial paper. The company pointed to that repayment as part of its track record in meeting obligations and managing institutional funding.

Recent financial disclosures show revenue of N177.4 billion. Earnings before interest, tax, depreciation and amortisation stood at N35.3 billion. Profit after tax came in at N17.3 billion. These figures are part of the documentation supporting the new issuance.

Executives say the numbers reveal steady operational growth, pointing to expanding activity in vehicle assembly, mobility services and after-sales support.

Chairman Diana Chen described the transaction as a strong vote of confidence in both Nigeria’s economic outlook and the company’s long-term growth strategy.

Group Chief Financial Officer Ram Murugesan said the company’s financial performance shows a deliberate platform-building approach driven by disciplined leverage management and expanding operational capacity.

Gbadebo Adenrele also noted that the successful redemption of Series 1 strengthened the company’s position in the local capital market. He added that United Capital’s involvement in the Series 2 issuance followed CIG Motors’ execution record and financial discipline.

The fundraising is seen within a pattern in Nigeria’s commercial paper market. Corporate issuers have turned more to short-term debt as bank lending costs are high and liquidity stays tight.

In 2025, Nigerian companies raised more than N1 trillion through commercial paper programmes. Yields in that period generally ranged between 18% and 25%, reflecting inflation pressures and funding demand across sectors.

CIG Motors’ current pricing falls within that range. It also places the offer in line with other mid-tier industrial and manufacturing issuers competing for investor funds.

Ratings on the programme point to moderate risk with investment-grade status. That places it below top-tier corporates, but still within acceptable thresholds for institutional investors seeking yield.

The company’s operations include vehicle assembly, electric mobility solutions and transport services. Its structure reflects a drive toward integrated automotive services rather than import-heavy distribution.

In 2024, Lagos State Government, through IBILE Holdings Limited, entered a partnership with CIG Motors. The deal covered the acquisition of 5,000 vehicles for the Lagos Ride transport scheme, with an estimated value of $260 million.

The programme aims to modernise urban transport in Lagos and replace older vehicles across parts of the public mobility system. It also positioned CIG Motors more firmly inside state-backed transport infrastructure projects.

Nigeria’s automotive sector is operating under pressure from import tariffs on fully built vehicles. Foreign exchange volatility also affects spare parts costs and local assembly operations. Policy direction, however, continues to support local assembly and electric mobility.

CIG Motors’ model is within that policy direction. Its focus on assembly, mobility services and electric vehicle expansion aligns with government efforts to reduce import dependence and build local capacity in transport infrastructure.

The post CIG Motors Launches N30bn Commercial Paper to Fund Expansion Across Nigeria appeared first on Tech | Business | Economy.

Aimed at strengthening the company’s working capital, this development was executed under MTN’s ₦250 billion commercial paper programme. 

The Series 11 and 12 issuances, which were priced at 27.5% and 29% for the 181-day and 265-day tenors respectively, saw strong participation from institutional investors, including asset managers, banks, and insurance companies.

The issuance’s success is noteworthy given the challenging financial conditions and the temporary exclusion of pension funds, which had previously been active participants. 

Despite this, the commercial paper saw a 150% subscription, reiterating investor confidence in MTN Nigeria’s ability to weather financial volatility. 

The proceeds will be used to address short-term funding needs as the company scales through its working capital requirements.

MTN Nigeria has been having financial setbacks, including a huge loss after tax of ₦514.9 billion for the nine months ending September 2024. 

This loss was attributed to the devaluation of the Nigerian naira and the subsequent foreign exchange losses, which led to a rise in finance costs. 

However, the company has reported commendable growth in service revenue, which increased by 33.6% year-on-year, driven by a surge in data and fintech services.

Raising funds through this commercial paper issuance is part of MTN Nigeria’s goal to diversify its financing options, particularly in light of high interest rates and ongoing monetary policy adjustments. 

This provides much-needed liquidity and enhances trust in the company’s long-term prospects despite the stressful economic challenges.

The post MTN Nigeria: ₦75bn Commercial Paper Surpasses Expectations, Bolstering Working Capital, Investor Trust appeared first on Tech | Business | Economy.

This brings the total redemptions under the ₦20Billion Commercial Paper Issuance Programme to over ₦8.95Billion since inception.

A statement signed by Mr. Sonnie Ayere, the GCEO of DLM Capital Group, reads:

“We are pleased to have fully repaid all the investors since inception till date without default. We thank all the investors for their participation and reiterate our commitment to be a counterparty that can be relied on for the long term.” He further added that “these redemptions reflect DLM’s capacity to meet its financial obligations as and when due, whilst looking to further strengthen the relationship with our investors as a responsible and dynamic issuer.”

DLM Capital Group is an investment grade company comprising the following businesses: retail banking via our digital banking channel Sofri; consumer and mid-corporate lending; asset management; investment banking; trustees; securities trading; and foreign exchange.

The post DLM Capital Group further Redeems its ₦1.70Billion Series 9, ₦1.10Billion Series 10 Commercial Paper Issues appeared first on Tech | Business | Economy.

MTN Nigeria sought to raise N100 billion, and the transaction was 125% subscribed, raising N125 billion in total.

Commercial paper is a promissory note that bears interest and is exchanged for capital. It is a credit instrument or a channel through which loans can be obtained from the securities market without having to approach a bank.

A commercial paper is issued by a corporate entity in need of funds for short-term financial obligations such as working capital and debt refinancing, among other things.

MTN Nigeria intended to borrow N100 billion through commercial paper, but it was oversubscribed, indicating that there was more demand for it among investors than anticipated.

As a result of the commercial paper issuance, MTN Nigeria raised N125 billion, allowing the company to use the funds for short-term working capital and funding needs.

“MTN Nigeria Communications PLC (MTN Nigeria) hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 4 & 5 Commercial Paper issuance under its Nl50 billion Commercial Paper Issuance Programme (the CP Issuance).

“MTN Nigeria sought to raise N100 billion, and the transaction was 125% subscribed, with a total of A125 billion raised.

“MTN Nigeria issued 188-day commercial papers at a yield of 11.00% and 267-day commercial papers at a yield of 12.50%. The CP Issuance was completed on 1 March 2023.

“The CP Issuance is part of MTN Nigeria‘s strategy to diversify its funding options. The proceeds will be utilized for its short-term working capital and funding requirements,” the document reads.

The post MTN Nigeria Raises N125bn Credit Through Commercial Paper appeared first on Tech | Business | Economy.

According to preliminary documents obtained over the weekend, Flour Mills is finalizing plans to launch an N40 billion commercial paper issuance, the first two tranches of its N200 billion commercial paper (CP) issuance program.

Commercial paper is an unsecured, short-term debt instrument issued by corporations. It’s typically used to finance short-term liabilities such as payroll, accounts payable, and inventories. Commercial paper is usually issued at a discount from face value.

The net proceeds of the Series 1 and 2 CPs will be used to “support its short-term funding requirements as part of its working capital management strategy,” according to the documents.

Flour Mills’ shareholders had approved major restructuring and capital injection programs for the company.

The massive restructuring could result in the unbundling of one of the largest conglomerates’ component businesses and assets.

Shareholders approved the group’s request to raise N200 billion in additional capital in support of its growth plan and the massive restructuring program.

FMN’s finance costs had jumped by 79.12 percent to N8.150 billion in 2022 from N4.55 billion in 2021; contributing to the marginal increase in profitability recorded during the period.

The Board of Directors of the group confirmed that shareholder approval had been obtained to undertake certain business restructuring and raise additional new capital.

The approvals allow the group to remove or separate all of its manufacturing businesses, as well as all of the company’s power assets.

While the post-unbundling structure of the emerging company is still unknown, market analysts believe FMN may adopt a holding company structure, which allows the company to maximize the potential of each segment of its businesses and assets while significantly reducing the risks of grouped liabilities.

Incorporated in 1960, FMN is a vast food and agro-allied company with operations in flour milling; production of pasta, noodles, edible oil, and refined sugar; production of livestock feeds; farming and other agro-allied activities; distribution and sale of fertilizer; manufacturing and marketing of laminated woven polypropylene sacks and flexible packaging materials; operation of Terminals A and B at the Apapa Port; customs clearing, development of real estate properties for rental, forwarding and shipping agents and logistics

The post Flour Mills to Raise N40 billion from Commercial Papers appeared first on Tech | Business | Economy.

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Commercial Paper refers to a short-term, unsecured debt obligation that is issued by financial institutions and large corporations as an alternative to costlier methods of funding.

The fund was raised in a series 1 and 2 of the N45 billion Commercial Paper Programme of UAC Nigeria.

The issuance received investment from pension fund administrators, asset managers, insurance companies, and high net-worth individuals, a document filed with the capital market authority, Nigerian Exchange Limited (NGX) revealed.

The commercial paper issuance comprised two tenors – a 90-day Series 1 issuance which is priced at 8.00% yield, and a 181-day Series 2 issuance which is priced at 8.25% yield.

According to a statement issued by Funke Ijaiya-Oladipo, Finance Director, UAC Group, this reflects the strong credit quality of the Company and investors’ positive sentiment toward UAC’s operations and strategy.

The CP issuance, which was 3.8x subscribed, was part of the intra-group treasury arrangement between UAC and its subsidiaries aimed at meeting short-term working capital requirements.

Ijaiya-Oladipo noted the CP Issuance was well received and attracted significant demand from a wide range of investors including pension fund administrators, asset managers, insurance companies and high net-worth individuals.

Stanbic IBTC Capital Limited acted as Lead Arranger and Dealer to the CP Issuance; First City Monument Bank (FCMB) Capital Markets Limited acted as Joint Dealer to the CP Issuance while Banwo and Ighodalo acted as Solicitors to the transaction.

Commenting on the significance and success of the CP Issuance, the Group Finance Director described the completion of the CP Issuance as a testament to the Company’s strength, the sustainability of its Group’s brands and the trust displayed by the investing community.

While she disclosed that the Commercial Papers will be quoted on the FMDQ Exchange, she said, “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.”

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