NIGERIA – Julius Berger, an industrial giant in Nigeria, has established a ₦30 billion (US$69.6m) Commercial Paper Issuance Programme approved by the FMDQ Securities Exchange Limited.

The scheme will from time-to-time issue commercial papers, denominated in Nigerian Naira, in separate series or tranches subject to compliance with all relevant laws and in accordance with the terms and conditions contained in the CP Programme Memorandum and Applicable Pricing Supplement.

The company believes that the establishment of the CP Programme will enhance its long-term strategy to strengthen its competitive advantage.

“The establishment of the CP Programme will enhance Julius Berger’s long-term strategy to strengthen its competitive advantage in the country, and each issuance under the CP Programme will support the Company’s short-term working capital and funding requirements,” highlighted the company.

The repayment of all obligations under each series or tranche of Notes issued under the CP Programme will be funded from the Company’s cash flows or such other means as may be indicated in the Applicable Pricing Supplement.

Stanbic IBTC Capital Limited acted as the lead arranger while FCMB Capital Markets Limited acted as the joint arranger in connection with the establishment of the CP Programme. Banwo & Ighodalo also acted as Solicitors to the Transaction.

The unveiling of the commercial paper program follows the company’s recent commissioning of its newly constructed semi-automated cashew processing factory.

Opening of the ultra-modern cashew processing plant with a processing capacity of about 60 tons per day, marks a major milestone for the company as it seeks to diversify beyond the construction sector through tapping into the agriculture industry.

Julius Berger’s agro-processing activities are set to benefit from its leading technical expertise and innovation with a proven record of reliably delivering solutions to the highest standards.

The investment is timely as Nigeria targets to increase production of cashew nuts from the current 250,000 metric tonnes to 350,000 metric tonnes by 2023, and processing capacity from 15 per cent in 2020 to 35 per cent by 2023.

The West African country is the third largest cashew producer in Africa behind Côte d’Ivoire and Tanzania.

In a bid to boost production and promote processing, the government has exempted companies involved in cashew nut processing from tax for the next 5 years.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE