Three companies have launched bids to raise about N120.3 billion from shareholders and the public.
Regulatory documents reviewed at the weekend showed that three companies in the financial services and manufacturing sectors could raise a total of N120.27 billion through the issuance of equities, non-interest bonds and commercial papers in many tranches.
The companies are TAJBank, VFD Group and McNichols Consolidated Plc. TAJBank has registered a N100 billion Sukuk issuance programme while VFD Group Plc has also registered a N20 billion commercial paper issuance programme. McNichols plans to raise N266 million through equity issuance to its shareholders.
According to the documents, TAJBank, a national non-interest bank, under the first tranche of its Sukuk issuance programme, is raising up to N10 billion through its special purpose vehicle – Taj Sukuk Issuance Programme SPV Plc.
The company is offering series 1 Mudarabah Sukuk at N1,000 per Sukuk certificate with a projected profit of 15 per cent per annum.
The net proceeds of the Sukuk will be used by TAJBank as additional Tier-1 Capital under the capital regulation and will be used by the bank to support its Tier-1 capital for the purpose of maintaining its capital adequacy and for its general corporate business activities.
VFD Group – a proprietary investment holding group plans to raise up to N5 billion under its impending Series 1 commercial paper. The net proceeds of the offer will be used to support the company’s short-term working capital and funding requirements.
McNichols – a food processing company, plans to raise new equity funds from its shareholders through a rights issue.
The company will be offering (531.24 million ordinary shares of 50 kobo each at 50 kobo per share to existing shareholders for 17 new ordinary shares for every 23 ordinary shares held as at the close of business on September 16, this year.
Companies had raised not less than N3.4 trillion in debt financing from the capital market in the first eight months of the year.
FMDQ Securities Exchange Limited indicated that it had during the period admitted 102 securities valued at N3.4 trillion to its board as companies continued to explore the debt market to fund their growth plans.
FMDQ noted that the performance of its platform so far in the year attests to its efficient and uniquely tailored listing and quotation service.
According to the Exchange, the increasing recourse to the debt market validates FMDQ Exchange’s conscious drive to support the goals of corporate businesses and deepen the debt markets.
Nigerian Breweries had registered a N100 billion commercial paper (CP) issuance programme on FMDQ Exchange, in preparation for raising debt capital from the market. The registration allows Nigerian Breweries to raise short-term finance of up to N100 billion from the Nigerian debt markets at a time it deems suitable.
FMDQ Exchange had also admitted a N10 billion CP issuance programme for Sundry Foods Limited, its first issuance. Sundry Foods Limited is one of Nigeria’s leading food services companies, operating in the quick service restaurant, bakery, and catering segments. The company has more than 130 branches across Nigeria with a variety of franchises that include Kilimanjaro, Pizza Jungle, Nibbles Creamery, Nibbles Bakery, Kiligrill, and Sundry Foods Services.