Efficacy Development Raises N6.67bn Through Maiden Commercial Paper Issuance

By Adedapo Adesanya

Efficacy Development Plc, a Nigerian real estate development and construction company, has raised N6.67 billion through its maiden Commercial Paper (CP) issuance under a N50 billion programme, marking its entry into Nigeria’s debt capital market.

The transaction was structured by Pathway Advisors Limited, which acted as Transaction Sponsor, Financial Adviser, Lead Issuing House and Lead Arranger.

The company said the Series 1 issuance would provide additional short-term funding to support its working capital requirements and accelerate the completion of ongoing projects.

The proceeds will partly fund the completion of key developments, including Eighteen65 Ikeja (Block A), Eighteen65 Victoria Island and Peak Resorts & Golf Course.

Commenting on the development, the chief executive of Efficacy Development, Mr Oyeleke Ajiboye, said the successful issuance demonstrated investors’ confidence in the company’s business fundamentals and track record in the real estate and construction industry.

He said the funding would strengthen the company’s operational capacity and support the timely delivery of its ongoing projects.

“The successful completion of our maiden Commercial Paper issuance is a strong endorsement of Efficacy’s business fundamentals, diversified operations and long-standing reputation in the real estate and construction industry,” Mr Ajiboye said.

He added that the company was encouraged by the confidence shown by asset managers, insurance companies and other institutional investors.

The Founder and Chief Executive Officer of Pathway Advisors, Mr Adekunle Alade, described the issuance as an important milestone for Efficacy, noting that it reflected investors’ confidence in the company’s management and growth prospects.

According to him, the transaction further demonstrates Pathway Advisors’ capacity to structure and execute capital market transactions for Nigerian businesses.

“Efficacy Development Plc has successfully taken this important step, and the completion of its N6.67 billion debut Commercial Paper issuance reflects the confidence investors have placed in the company, its management and its growth prospects,” Mr Alade said.

Efficacy Development has more than 18 years of operating experience across property development, building construction, civil engineering and infrastructure development.

The company said it had delivered more than 26 residential estate projects, sold 2,042 houses and 4,112 plots of land to over 6,200 customers, with a land bank of approximately 248 hectares across Abuja, Lagos, Ogun, Rivers and Osun states.

Its operations also cover architecture and interior design, project management, pile foundation, dredging, reclamation, civil and structural works, as well as sewage and water treatment.

The company is rated A3 (Short Term)/BBB- (Long Term) by Global Credit Rating Company and A2 (Short Term)/A- (Long Term) by DataPro Limited.