Aden River Estates Limited has entered Nigeria’s debt capital market for the first time, raising N250 million through its Series 1 Commercial Paper issuance under a N20 billion commercial paper programme.
The palm oil producer, established in 1969, signed the transaction with Anchoria Advisory Services Limited as the issuing house during a ceremony in Lagos. The issuance featured two tranches with tenors of 270 and 364 days, offering yields of 22 per cent and 25 per cent respectively, with the 364-day tranche fully subscribed.
Chief Executive Officer, Emmanuel Ibru, described the issuance as the company’s first step towards raising up to N20 billion to fund expansion, adding that a bond issuance is expected within the next nine months.
The proceeds from the Series 1 offering will support working capital, while the company plans to invest about $50 million over the medium term through a mix of debt, equity, and internally generated funds. Aden River Estates also intends to expand its operations by installing a 30-tonne per hour palm oil mill and developing a palm kernel oil extraction facility across its 7,000-hectare plantations in Edo State.
Anchoria Advisory Services confirmed the commercial paper was successfully subscribed, attributing investor confidence to the company’s investment-grade Triple-B credit rating and annual revenues exceeding N1 billion. Legal advisers TOLG Advisors said the company had undergone extensive restructuring to become capital market ready and is now positioned to access both short and long-term financing.
Ibru noted that the expansion aligns with efforts to bridge Nigeria’s palm oil supply gap, as domestic production remains below national demand, forcing the country to spend between $500 million and $600 million annually on imports.
Source: The Guardian
Leave a comment