Johnvents raise N80bn as investors oversubscribe commercial paper
- Johnvents Industries tok say investors buy pass wetin dem offer for dia N80 billion Series 1 Commercial Paper.
- Di company also pay back dia Series 21 Commercial Paper wey worth N28.64 billion, full, wen e mature.
- Johnvents say di new money go buy and process cocoa and oda farm commodities dis season.
Agribusiness company Johnvents Industries Limited say investors buy pass wetin dem offer for dia N80 billion Series 1 Commercial Paper sale, and say dem don pay back one earlier N28.64 billion debt on time, full.
Di company announce both for one statement on Monday. Dem float di new paper under one N250 billion Commercial Paper Programme, na short-term borrowing arrangement wey companies dey use raise working capital from investors.
Di company say subscriptions come pass di offer size, and e talk say na sign say investors get confidence for dia business and expansion plans.
Johnvents say di N80 billion go enter seasonal working capital, mainly to buy and process cocoa and oda agricultural commodities during dis current operating cycle. Di money suppose help am secure raw materials inside critical seasonal windows and keep dia processing plants dey run.
Why e matter
Johnvents don grow from sourcing and trading farm commodities enter one integrated agribusiness and food manufacturing platform. Dia work span aggregation, storage, processing, exports and branded consumer products.
Di company say dia next growth phase go focus on raising processing output, improving how dem use capacity, moving into higher-value consumer goods and strengthening domestic distribution and export ties. E say di strategy also aim to strengthen Nigeria non-oil export base, create jobs and support farmers, aggregators, transporters, distributors and service providers inside dia network.
Group Managing Director John Alamu call di oversubscription one vote of confidence for di company plan to link agriculture with industry, exports and consumer markets. He say dem go use di proceeds as e dey for di approved offer documents, with attention on liquidity management and timely repayment.
Group Head of Treasury Samuel Olaifa say di new sale and di repayment of Series 21 at maturity show say di company dey match funding to dia operating cash flows and dey manage maturities deliberately.
Di company say di transaction follow investor meetings and tours of some Johnvents facilities, where investors fit assess dia operations, processing capacity and inventory cycle.
Kayode Omosebi, Acting Managing Director of Regius Capital, say di engagements give investors clearer picture of how di company assets, inventory cycle, cash generation and ability to repay link up. He say di oversubscription reflect institutional appetite for well-structured credit.
United Capital Plc and Regius Capital Limited lead di transaction, alongside oda joint issuing houses and advisers.
Wetin happen next
Di company say e go use di funds through di current cocoa and commodity season and keep meeting dia repayment obligations as dem fall due.
