FMDQ approves Ojaja Pan Africa’s N25bn commercial papers

FMDQ approves Ojaja Pan Africa’s N25bn commercial papers

FMDQ Securities Exchange Limited has approved the quotation of Ojaja Pan Africa Limited’s N25.53bn Series 1, Series 2 and Series 3 Commercial Papers under its N100bn CP Issuance Programme on its platform.

The approval, granted by the Exchange’s Board Listings and Markets Committee, further expands Ojaja Pan Africa’s access to Nigeria’s debt capital market and reflects the growing participation of diversified corporates in the short-term funding landscape.

The issuance comprises N4.80bn Series 1, N1.36bn Series 2 and N19.37bn Series 3 commercial papers.

The development comes at a time when non-bank corporate entities in Nigeria are increasingly turning to commercial papers to bypass elevated bank lending rates driven by tightening monetary policy and high Monetary Policy Rates set by the Central Bank of Nigeria.

Ojaja Pan Africa Limited is a diversified conglomerate founded by the Ooni of Ife, Oba Adeyeye Ogunwusi, with active operational interests across real estate, agriculture, manufacturing, mining, tourism, hospitality and retail sectors, including its flagship retail chain, Ojaja More, across Africa.

Having previously accessed the Exchange’s platform to raise short-term capital, the issuer has established a track record of meeting its financial obligations as they fall due.

The net proceeds from the commercial paper issuance, sponsored by Comercio Partners Capital Limited as a Registration Member (Quotations) of FMDQ Exchange, will be deployed directly to support the issuer’s working capital requirements and drive ongoing business operations across its operating divisions. Commenting on the quotation, the Group Chief Operating Officer of FMDQ Group Plc, Tumi Sekoni, stated that Ojaja Pan Africa’s return to the commercial paper market at a larger scale underscores sustained investor interest in well-structured corporate issuances.

She noted that FMDQ Exchange remains committed to offering corporates efficient entry into the debt capital market while supporting Ojaja Pan Africa as it deploys the facility to expand its pan- African footprint.

Short-term debt instruments, particularly commercial papers, have recorded robust growth on the FMDQ platform over recent quarters, as corporate issuers leverage the Exchange’s streamlined admission process to meet liquidity demands and rebalance their debt profiles.

As Nigeria’s capital market continues to deepen, FMDQ Exchange maintains its focus on offering a reliable platform for issuers to mobilise short-term liquidity. Operating as Africa’s first vertically integrated financial market infrastructure group, FMDQ Group provides comprehensive registration, listing, quotation, trading, clearing and settlement services across debt capital, foreign exchange, derivatives and equity markets through its specialised subsidiaries.

Source: https://punchng.com/fmdq-approves-ojaja-pan-africas-n25bn-commercial-papers/