Pathway Advisors Delivers N45bn Hybrid Commercial Paper Offer for Zeenab Foods

By Adedapo Adesanya

Pathway Advisors Limited has successfully completed a N45 billion Hybrid Commercial Paper Offer for Zeenab Foods Limited, with institutional and sophisticated investors committing N54.4 billion across the conventional and non-interest-based commercial paper instruments.

The transaction comprised a N25 billion Conventional Commercial Paper issuance and a N20 billion Non-Interest-Based Commercial Paper issuance, providing Zeenab Foods with diversified short-term funding while broadening access to investment opportunities across different segments of the institutional market.

The offer recorded strong demand across both tranches. The N25 billion Conventional Commercial Paper attracted subscriptions of N28.8 billion, representing 115 per cent of the amount offered, while the N20 billion Non-Interest-Based Commercial Paper received subscriptions of N25.6 billion, representing 128 per cent of the offer size.

Overall, investors committed N54.4 billion against the N45 billion offered, representing an aggregate subscription level of approximately 121 per cent.

The strong investor response reflects the market’s interest in Zeenab Foods’ business fundamentals, growth prospects and strategic direction, while highlighting growing demand for structured funding opportunities that cater to both conventional and non-interest-based investors.

Commenting on the transaction, the Founder and Chief Executive Officer of Pathway Advisors, Mr Adekunle Alade, said the firm was proud to have acted as Transaction Sponsor, Financial Adviser, Lead Issuing House and Arranger to Zeenab Foods on the landmark transaction.

“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 specifically acknowledged the participation of Pension Fund Administrators, insurance companies, asset management firms, investment funds, corporates and other institutional and sophisticated investors.

According to him, the oversubscription recorded across both the conventional and non-interest commercial paper tranches underscores the depth and evolving sophistication of Nigeria’s capital market.

“This transaction also demonstrates the growing appetite for innovative and inclusive financing solutions capable of catering to both interest-based and non-interest-based investors,” he said.

Mr Alade added that Pathway Advisors remained committed to structuring and executing capital market solutions that provide businesses with efficient access to funding while creating investment opportunities for a broad range of investors.

Also commenting on the successful issuance, the Chief Executive Officer of Zeenab Foods Limited, Dr Victor Ayemere, described the transaction as a significant milestone for the company.

“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,” Ayemere said.

He said the successful offer would provide Zeenab Foods with additional funding to support its growth and strategic objectives, adding that the hybrid structure enabled participation from both conventional and non-interest-based investors.

The Zeenab chief commended Pathway Advisors and other transaction parties for their professionalism and commitment throughout the process, noting that Zeenab Foods would focus on deploying the funds responsibly to strengthen its operations, drive sustainable growth and create long-term value for its stakeholders.