Julius Berger Goes Into Cashew Business, Borrows N30 Billion From Investors
- Julius Berger has collected N30 billion from Nigerian investors as it moves to establish its cashew business
- The funds were obtained using commercial papers, and there were several interested investors
- Stanbic IBTC Capital Limited and FCMB Capital Markets Limited are among the arrangers of the deals
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Julius Berger Nigeria Plc has successfully borrowed N30 billion in Nigeria's fixed-income market.
The money was borrowed through Commercial Paper (CP) issuance in series 1 and series 2 issuance and will be quoted on the FMDQ Securities Exchange.
In a corporate document submitted to the Nigerian exchange, the company said the money borrowed would be used to finance its short-term working capital and another funding requirement.
Also, funds would aid Julius Berger's efforts to diversify into economically significant sectors starting with the launch of its cashew processing business.
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Part of the statement reads:
"Julius Berger Nigeria PLC (“Julius Berger” or the “Company”) is pleased to announce the successful completion of its ₦30 billion Series 1 and 2 Commercial Paper issuance (the “CP Issuance”), which is the Company’s debut issuance in Nigeria’s fixed income market.
“The CP Issuance comprised two tenors – a 182-day Series 1 issuance which was priced at a 14.00% yield, and a 267-day Series 2 issuance which was priced at a 15.00% yield."
Julius Berger also revealed that banks, pension fund administrators, asset managers, insurance companies, and high net-worth individuals were part of the investors that contributed to the N30 billion debt.
The statement added:
“The CP Issuance was 2.3x subscribed. The CP issuance attracted significant demand from a wide range of investors including pension fund administrators, asset managers, insurance companies, banks and high-net-worth individuals."
"The proceeds of the CP Issuance will be used to support Julius Berger's short-term working capital and funding requirements, further strengthening the Company's competitive advantage in the Nigerian construction sector and financial flexibility as the Company implements its strategic initiative to diversify into economically significant sectors, beginning with the launch of its cashew processing business."
Otedola to sell shares of his electricity company
Meanwhile in another report Legit.ng revealed that billionaire Femi Otedola officially listed his electricity company, Geregu Power Plc, on the Nigerian Stock Exchange.
The development allows the public to become part owners by buying the company’s shares for N100 per share.
Geregu Power plc is one of Nigeria's major power generation companies (Genco), and Otedola has stated that it would be his primary business focus.