Zeenab Foods Limited (ZFL) has launched its Series 3 Commercial Paper Notes, comprising Tranche A and Tranche B, with a total offering of up to N10 billion.
This latest issuance builds on the success of the Series 1 Tranche A Commercial Paper, issued on August 1, 2024, which raised N1.6 billion with a 60-day tenor, as well as the ongoing Series 2 (Tranches A to D) with a cumulative value of N3.38 billion.
The newly launched Series 3 Commercial Paper, part of a broader N20 billion Commercial Paper Programme, offers two options: Tranche A with a 182-day tenure and a yield of 28.5004%, and Tranche B with a 270-day tenure and a yield of 30.5042%.
As outlined in the company’s disclosure, the Series 3 issuance will remain open until January 15, 2025, with the settlement date scheduled for January 16, 2025.
The primary objective of this financial issuance is to facilitate working capital. According to the company, the funds raised will be directed towards procuring paddy rice and other export-oriented commodities, further supporting the company’s operations.
What to know
The pricing method is fixed, with both tranches receiving an “A” long-term rating from Augusto & Co. and DataPro Limited, along with an “A1” short-term rating from DataPro Limited.
- Tranche A is offered at a discount of 24.95% and matures on July 15, 2025.
- Tranche B is discounted at 24.89% and matures on October 13, 2025.
- The issuance is priced at 100% of par value, with a minimum purchase of N1,000 and additional purchases in multiples of N1,000.
Zeenab Foods
Zeenab Foods Limited, founded in 2011, is a Nigerian company specializing in food processing and agro-commodity trading. Its core operations include rice milling, agro-commodity exports, and executing food supply contracts.
- In October 2024, Zeenab Foods redeemed and repaid all subscribers of its N1.6 billion Series 1 (Tranche A) Commercial Paper issuance, part of its N20 billion Commercial Paper Programme approved by FMDQ Securities Exchange Limited.
- The Series 1 Tranche A Commercial Paper, issued on August 1, 2024, through the FMDQ Securities Exchange, reached maturity and was fully redeemed on September 30, 2024.
- Additionally, the company’s ongoing Series 2 Commercial Paper, spanning Tranches A to D, has a cumulative value of N3.38 billion.
- Commenting on the milestone, Dr. Ayemere O. Victor, the Managing Director and CEO of Zeenab Foods Limited, expressed gratitude for the market’s confidence, stating:
“We greatly appreciate the support and confidence of the market in our brand and are pleased to have fully redeemed and repaid all subscribers to our first Commercial Paper issuance.”
Looking ahead, Zeenab Foods plans to tap into the Nigerian Debt Market to issue a new series of Commercial Papers.