Zeenab Foods Limited, a leading food processing and agro-commodity trading company in Nigeria, has successfully signed a N20 billion Commercial Paper (CP) Issuance Programme on the FMDQ Securities Exchange Limited.
The Board Listings and Markets Committee of the Financial Market Dealers Quotation (FMDQ) Securities Exchange approved the CP Programme.
The signing ceremony occurred on July 2, 2024, at the company’s corporate head office at Idu Industrial Area, Federal Capital Territory, Abuja.
The event was attended by key stakeholders, including Pathway Advisors Limited (Financial Adviser and Transaction Sponsor), Polaris Bank Limited (Collecting and Paying Agent), Greychapel Legal (Transaction Solicitor), and ATC Professional Services (Auditor to the Issuer).
According to Dr Victor O. Ayemere, MD/CEO of Zeenab Foods Limited, the Commercial Paper program will position Zeenab Foods to navigate the financial landscape of the agro-commodities sector, ultimately leading to enhanced growth opportunities and sustainable success in the market. It will also aid in meeting the company’s short-term capital and funding needs, ultimately allowing for a broader range of funding options and creating additional value for stakeholders. The proceeds from the CP issuance will be specifically used to purchase rice paddy and enhance value addition to other agro-commodities before export.
He expressed gratitude to Pathway Advisors Limited, the Financial Adviser and Transaction Sponsor, for their efforts in ensuring the successful approval of the CP Programme.
Speaking at the signing ceremony, Mr. Adekunle Alade, CEO of Pathway Advisors Limited said “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.
About Zeenab Foods Limited
Zeenab Foods Limited is a food processing and agro-commodity trading company established in 2011. Zeenab Foods operates three main business segments namely:
- Milling of Rice Paddy: The rice mill has an installed milling capacity of 120 metric tonnes (MT) per day. The Company plans to double its current rice milling capacity by 2025 to grow its share of the rice market in Nigeria.
- Export of processed and packaged agro commodities such as Dried Split Ginger, Cassia Tora, Sesame Seeds, Cashew Nuts, Peanuts, Cassava Chips, Gum Arabic etc. to China and other countries.
- Food Supply Contracts: Zeenab Foods supplies grains and other agro-commodities to international donor agencies to support various humanitarian aid projects. These include Beans, Sorghum, Millet, Maize, etc.
The Company’s operation is focused on value addition and processing of farm produce. The key inputs to this process include Rice paddy, unprocessed beans, millet, sorghum, and ginger among others, which are sourced through aggregators and direct offtake agreements with farmers.
ZFL owns two factories located in the Federal Capital Territory (Abuja) and in Kano State. The company was also appointed as the operator of the Nigerian Export Trade House in China / Fareast region by the federal Government through the Nigerian Export Promotion Council’s export expansion facility program. Zeenab Foods commissioned a liaison office in Lagos to drive export volumes.
Zeenab Foods Limited has been rated A by both Agusto & Co and Datapro Limited.