By Dipo Olowookere
Commercial paper worth N30 billion is being offered for sale to investors by Julius Berger Plc in two series to raise funds for its operations.
Business Post gathered that the exercise commenced on Tuesday, January 24, 2023, and is expected to end on Monday, January 30, 2023.
The company, which is a leading player in the construction industry, is selling the debt instrument across two tenors, 182 days and 267 days.
The discount rate of the 182-day paper is 13.09 per cent, with an implied yield of 14.00 per cent, while the 267-day paper has a discount rate of 13.52 per cent and an implied yield of 16.00 per cent.
To buy the commercial paper of the construction firm, subscribers will have to pay at least N5 million. This can be done through registered brokerage companies.
In the 2021 fiscal year, Julius Berger grew its revenue by 40.13 per cent to N338.8 billion from N241.8 billion in 2020, as its net profit jumped by 574.96 per cent to N8.3 billion from N1.2 billion in the preceding accounting year.
Julius Berger is a leading Nigerian company offering holistic services covering the planning, design, engineering, construction, operation and maintenance of buildings, infrastructure and industry projects in Nigeria.
Since the execution of its pioneer project in 1965 by Julius Berger Tiefbau AG, a related entity, Julius Berger has played a pivotal role in the development of Nigeria’s industrial and civil infrastructure.
It was incorporated as a private company in 1970 and was later converted to a public company and joined the Nigerian Exchange (NGX) Limited in 1991.
Julius Berger has completed over 600 buildings, 20 industrial facilities and 130 infrastructure projects in Nigeria.
Infrastructure projects carried out by the firm include the construction of roads, bridges, seaports, airports, automobile assembly plants, dams, factories, petrol stations, independent power plants, development of the capital city (Abuja), amongst other projects.
Some of the landmark projects successfully executed by the company were the recent construction of the landmark Second River Niger Bridge aimed at strengthening socio-economic development across the East-West region, the construction of the Second Mainland Bridge (Eko Bridge), the repair of the Onitsha bridge in seven weeks, construction of the 500m long and 25m high Laminga Dam, with spillway system, water-treatment plant and 48km pipeline distribution network, completion of construction work for Nnamdi Azikiwe International Airport, Abuja, etc. The Company specialises in executing complex works requiring the highest level of technical expertise and Nigeria-specific know-how.
Julius Berger has seven subsidiaries that enable it to complete multifaceted projects at the highest level of performance. This structure allows the organisation to effectively manage and fulfil construction projects, starting from the initial idea through to planning, design, engineering, construction, operation and maintenance.
Julius Berger, together with its subsidiaries, is guided by a value system which has, over time, defined and differentiated its business, thereby setting a benchmark in the Nigerian construction industry. Julius Berger offers its industrial clients forward-looking solutions that preserve the high value of assets and guarantee their sustained availability.
