Investors Oversubscribe Zeenab Foods N45bn Commercial Paper

By Adedapo Adesanya

Zeenab Foods Limited has raised N45 billion through a hybrid commercial paper offer that attracted N54.4 billion in subscriptions from institutional and sophisticated investors.

The transaction, arranged by Pathway Advisors Limited as Transaction Sponsor, Financial Adviser, Lead Issuing House and Arranger, comprised a N25 billion conventional commercial paper tranche and a N20 billion non-interest-based commercial paper tranche.

The conventional commercial paper attracted N28.8 billion in subscriptions, representing a subscription rate of 115 per cent, while the non-interest-based tranche received N25.6 billion, indicating an oversubscription of 28 per cent of its N20 billion target.

Overall, the offer was 121 per cent subscribed, reflecting excess demand of N9.4 billion above the N45 billion target.

Commenting on the transaction, the chief executive of Zeenab Foods, Mr Victor Ayemere, said the funds would support the company’s growth and strategic objectives.

“We are delighted with the successful completion of our N45 billion Hybrid Commercial Paper Offer and deeply appreciate the confidence and strong participation of the institutional and sophisticated investors who supported the transaction,” he said.

Mr Ayemere said the hybrid structure enabled the company to attract both conventional and non-interest-based investors, adding that the funds would be deployed to strengthen operations, support sustainable growth and create long-term value for stakeholders.

The chief executive also commended Pathway Advisors and other parties involved in the transaction for their role in its successful completion.

On his part, the chief executive of Pathway Advisors, Mr Adekunle Alade, said his organisation was pleased to have supported Zeenab Foods in accessing the capital market through the hybrid structure.

“We extend our profound appreciation to the institutional investors whose trust, confidence and strong participation contributed significantly to the success of this landmark transaction,” Mr Alade said.

He identified pension fund administrators, insurance companies, asset management firms, investment funds, corporates and other institutional and sophisticated investors among participants in the offer.

According to Pathway Advisors, the oversubscription across both tranches highlights growing investor appetite for financing structures that accommodate conventional and non-interest-based investment preferences.

Zeenab Foods, established in 2011, operates across food processing, agro-commodity trading and food supply.

The company has a rice milling facility with an installed capacity of 180 metric tonnes per day and exports processed and packaged commodities including dried split ginger, sesame seeds, cashew nuts, peanuts, cassava chips, gum arabic and shea butter.

It also supplies grains and other agricultural commodities to international donor agencies for humanitarian aid projects.

Zeenab Foods operates factories in Abuja and Kano and was appointed by the Federal Government, through the Nigerian Export Promotion Council’s Export Expansion Facility Programme, as operator of the Nigerian Export Trade House in China and the Far East region.

The company also maintains a liaison office in Lagos to support its export operations, and has been assigned ratings of A- by Agusto & Co and A by Datapro Limited.