Total Nigeria, Valency Agro to raise N37 billion through commercial papers | Ripples Nigeria
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Total Nigeria, Valency Agro to raise N37 billion through commercial papers

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FMDQ Securities Exchange Limited has announced the admission of commercial papers from Total Nigeria, Valency Agro and Mixta Estate worth over N37 billion under its issuance programme.

The company disclosed this on Twitter handle on Friday.

Commercial paper is a commonly used type of unsecured, short-term debt instrument with an unconditional promise by an Issuer/Promoter to pay to the order of an investor, a certain sum at a future date.

When an investor buys commercial paper of a company this is done at a discount price to receive the full value at maturity, which takes about 15 to 270 days.

According to FMDQ, Total Nigeria Plc will raise a total sum of N15billion in separate offers.

The company will raise N2.25 billion through the Series 1 commercial paper and N12.75 billion via series 2 which is under FMDQ N30 billion  CP issuance programme.

On the other hand, Mixta Real Estate Plc will raise N2billion Series 32 CP under the N20 billion CP Issuance Programme.

READ ALSO: Total Nigeria records N204.8m loss for Q3 2019

The Valency Agro Nigeria Limited is also expected to raise N20 billion issues under the CP Issuance Programme.

The Managing Director of Total Nigeria, Mr. Imrane Barry, who spoke on the development, said “the programme was set up to help the company to further expand its sources of capital by accessing funding from the Nigerian debt capital markets while also reducing its overall funding costs.”

For Valency International Plc, the company’s Managing Director, Mr. Sunil Dhanuka, simply said: “We are glad for the successful registration of Valency Agro’s.”

In a statement issued on the offerings, FMDQ Group reaffirmed his desire to make the Nigerian financial market globally competitive, operationally excellent, liquid and diverse in line with its agendas.

“FMDQ continues to bring about revolutionary changes in the Nigerian capital market through its exchange, clearing, depository and private markets subsidiaries; providing a seamless process and value-chain for market participants to commence and end their financial market transactions,” it stated.

 

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