New cashew business, others force Julius Berger to take on N30bn debt

Julius Berger Nigeria has disclosed that it borrowed N30 billion in Nigeria’s fixed-income market through commercial paper issuance.

In a corporate document obtained by Ripples Nigeria on Thursday, but dated February 15, 2023, and sent to its shareholders and the investing public, Julius Berger said the fund was raised in Series 1 and 2 Commercial Paper issuance.

Banks, pension fund administrators, asset managers, insurance companies, and high net-worth individuals were part of the investors that contributed to the N30 billion debt.

Julius Berger plans to use the fund to finance its short-term working capital and other funding requirements, as well as diversify into economically significant sectors starting with the launch of its cashew processing business.

“Julius Berger Nigeria PLC (“Julius Berger” or the “Company”), is pleased to announce the successful completion of its ₦30 billion Series 1 and 2 Commercial Paper issuance (the “CP Issuance”), which is the Company’s debut issuance in Nigeria’s fixed income market.

Read also:Julius Berger goes into agric business as Nigerian govt turns attention to Chinese firm

“The CP Issuance was 2.3x subscribed. The CP issuance attracted significant demand from a wide range of investors including pension fund administrators, asset managers, insurance companies, banks and high-net-worth individuals.

“The CP Issuance comprised two tenors – a 182-day Series 1 issuance which priced at a 14.00% yield and a 267-day Series 2 issuance which was priced at a 15.00% yield,” the corporate document reads.

It added that “The proceeds of the CP Issuance will be used for the purpose of supporting Julius Berger’s short-term working capital and funding requirements, thus further strengthening its competitive advantage in the construction sector in Nigeria and its financial flexibility as the Company implements its strategic initiative to diversify into economically significant sectors starting with the launch of its cashew processing business.”

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