VFD Group redeems N12.8bn commercial paper

VFD Group redeems N12.8bn commercial paper

Investment firm VFD Group has announced the successful redemption of its N12.83bn Series 5 Commercial Paper issued under its N20bn CP Programme.

According to a statement from the firm on Tuesday, the redemption was executed on its maturity date of 14 November 2025.

The PUNCH reports that VFD Group Plc recently launched an N50.67bn rights issue of five billion units of ordinary shares at N10.00 per share as part of its strategy to consolidate growth and deepen its investment footprint across Africa. The rights issue is expected to close on 24 November.

VFD Group said that by redeeming the N12.83bn commercial paper, it demonstrated its capacity to generate internal liquidity to meet all obligations as and when due.

Notably, VFD has played in the Nigerian debt market since its debut commercial paper offer in July 2023 (the Series 1 Offer). The Group has raised and successfully redeemed a total of N33.4bn in commercial paper from the domestic market, highlighting strong investor confidence in the Group as an issuer.

This specific redemption now solidifies a track record of five consecutive, cyclical maturity settlements since the CP Programme was launched in 2022.

Commenting on the CP redemption, the Executive Director of Finance and Investor Relations for VFD Group, Mr Folajimi Adeleye, said, “The timely redemption of the Series 5 CP is non-negotiable proof of VFD Group’s robust liquidity and commitment to every stakeholder who entrusts us with capital. The redemption action, which achieved a tangible reduction in the Group’s short-term debt obligations, directly improves VFD’s funding structure. This performance contrasts sharply with prevailing fixed-income trends, positioning VFD as a premium issuer capable of navigating current high-yield environments.”

On the outlook, the company said the successful redemption underscored its commitment to financial excellence and stability.

Source: https://punchng.com/vfd-group-redeems-n12-8bn-commercial-paper