Julius Berger, a leading construction firm, has made significant strides by successfully completing its first-ever N30 billion ($65.3 million) commercial paper issuance (CP issuance) in Nigeria’s fixed-income market.
The company, partly owned by Nigerian telecom tycoon Mike Adenuga, is now expanding into the cashew processing industry, a move aimed at diversifying its operations.
The Adenuga-linked company has achieved a significant milestone with the successful issuance of its commercial papers, which offered a 182-day Series-1 issuance with a 14-percent yield and a 267-day Series-2 issuance priced at a 15-percent yield.
The issuance solidifies its position in the Nigerian construction industry and highlights the organization’s financial strength and stability.
The $65.3-million capital injection will not only bolster the company’s financial capacity but also propel its strategic drive to diversify into high-growth sectors, beginning with its cashew processing enterprise.
Additionally, the proceeds from the CP issuance will be utilized to bolster the company’s short-term working capital and funding necessities, thereby cementing its competitive edge in the construction industry.
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, demonstrating strong investor confidence in the management and vision of the company as it moves into cashew processing.
Lars Richter, the managing director, expressed his enthusiasm for the successful completion of Julius Berger’s debut CP Issuance in the Nigerian fixed-income market.
He emphasized that the success of the issuance is a testament to the company’s strength, the sustainability of its brand, and the confidence Nigeria places in the company’s services.
He further added that the success of the issuance not only optimizes the funding cost but also drives the strategic initiatives of the organization. Finally, Richter expressed gratitude toward the investor community for supporting the transaction.
Nigerian billionaire Mike Adenuga’s stake in Julius Berger is worth $21.3 million
Adenuga, the founder of Globacom Limited, Nigeria’s third-largest telecom services provider, holds a 25.1-percent stake in Julius Berger through his company Goldstones Estates Limited, which amounts to 401,834,494 ordinary shares.
Additionally, Adenuga’s daughter, Belinda Ajoke Disu, serves on the board of directors. As of the report’s drafting, Adenuga’s stake in the company is valued at N9.8 billion ($21.3 million).