Zeenab Foods Limited, Nigeria’s leading food processing and agro-commodity trading company, has successfully completed a N20 billion Commercial Paper (CP) Issuance Programme on the FMDQ Securities Exchange Limited.
The CP Programme was approved by the FMDQ Securities Exchange’s Board Listings and Markets Committee.
The signing ceremony took place on July 2, 2024, at the company’s corporate headquarters in Idu Industrial Area, Federal Capital Territory (FCT) Abuja.
Key stakeholders attended the event, including Pathway Advisors Limited (Financial Adviser and Transaction Sponsor), Polaris Bank Limited (Collecting and Paying Agent), Greychapel Legal (Transaction Solicitor), and ATC Professional Services (Issuer Auditor).
According to Dr Victor O. Ayemere, MD/CEO of Zeenab Foods Limited, the Commercial Paper program will enable Zeenab Foods to navigate the financial landscape of the agro-commodities sector, resulting in increased growth opportunities and long-term market success.
“It will also help to meet the company’s short-term capital and funding requirements, allowing for a broader range of funding options and adding value for stakeholders. The proceeds from the CP issuance will be used specifically to buy rice paddy and add value to other agro-commodities before export,” Ayemere stated.
He thanked Pathway Advisors Limited, the Financial Adviser and Transaction Sponsor, for their assistance in ensuring the successful approval of the CP Programme.
Mr. Adekunle Alade, CEO of Pathway Advisors Limited, stated at the signing ceremony: “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.”
