NGN Gram Raises Funds via ₦10bn Commercial Paper Programme Listed on NGX
NGN Gram Limited has tapped the short-term debt market to raise billions of naira, with its instruments now tradable on the exchange
Here’s a clear breakdown
What Was Listed?
Short-term debt instruments called Commercial Paper (CP) were listed on:
Nigerian Exchange Limited (NGX)
These are used by companies to borrow money from investors for a limited period.
Total Programme Size
• Overall CP programme: ₦10 billion
• Current issuance (Series 1): Divided into three tranches
• Total issued across the three: ≈ ₦10 billion
Shows strong funding needs and investor participation.
What Commercial Paper Means
Commercial Paper is:
✔ Short-term borrowing instrument
✔ Typically issued by large companies
✔ Repaid at maturity with interest (via discount pricing)
✔ Lower risk than many unsecured corporate debts
Often used for working capital or operational funding.
Breakdown of the Three Tranches
Tranche A (Shortest Term)
• Amount: ₦809.32 million
• Tenor: 182 days (~6 months)
• Maturity: 13 Aug 2026
• Issue price: 90.32% of face value
• Implied yield: 21.5%
Tranche B (Medium Term)
• Amount: ₦472.39 million
• Tenor: 270 days (~9 months)
• Maturity: 9 Nov 2026
• Issue price: 85.46% of face value
• Implied yield: 23.0%
Tranche C (Longest Term)
• Amount: ₦8.72 billion (largest portion)
• Tenor: 364 days (~1 year)
• Maturity: 11 Feb 2027
• Issue price: 80.36% of face value
• Implied yield: 24.5%
Investors preferred the longer-term option.
Why Issue Prices Are Below ₦1,000
Each unit has a face value (par) of ₦1,000, but investors bought at a discount.
Example:
• Buy at ₦803.60
• Receive ₦1,000 at maturity
• Difference = your return
This is how interest is paid on CP.
High Yields Reflect Market Conditions
Yields between 21.5% — 24.5% suggest:
High interest-rate environment
Strong demand for funds
Attractive returns for fixed-income investors
Key Parties Involved
• Lead Arranger/Dealer: Comercio Partners Capital Limited
• Paying Agent: Fidelity Bank Plc
These institutions structured and managed the issuance.
Redemption Terms
✔ Investors receive full face value at maturity
✔ Payments made in Nigerian naira
✔ No periodic interest payments (discount instrument)
Why This Matters
For NGN Gram Limited
Provides fast access to large funding without long-term debt.
For Investors
Offers high short-term returns relative to savings products.
For Capital Markets
Shows active corporate borrowing and deepening fixed-income market.
Simple Takeaway
NGN Gram borrowed nearly ₦10 billion from investors through short-term notes, promising high returns when they mature within 6–12 months.
NGN Gram Limited has tapped the short-term debt market to raise billions of naira, with its instruments now tradable on the exchange
Here’s a clear breakdown
What Was Listed?Short-term debt instruments called Commercial Paper (CP) were listed on:
Nigerian Exchange Limited (NGX)
These are used by companies to borrow money from investors for a limited period.
Total Programme Size• Overall CP programme: ₦10 billion
• Current issuance (Series 1): Divided into three tranches
• Total issued across the three: ≈ ₦10 billion
Shows strong funding needs and investor participation.
What Commercial Paper MeansCommercial Paper is:
✔ Short-term borrowing instrument
✔ Typically issued by large companies
✔ Repaid at maturity with interest (via discount pricing)
✔ Lower risk than many unsecured corporate debts
Often used for working capital or operational funding.
Breakdown of the Three TranchesTranche A (Shortest Term)
• Amount: ₦809.32 million
• Tenor: 182 days (~6 months)
• Maturity: 13 Aug 2026
• Issue price: 90.32% of face value
• Implied yield: 21.5%
Tranche B (Medium Term)
• Amount: ₦472.39 million
• Tenor: 270 days (~9 months)
• Maturity: 9 Nov 2026
• Issue price: 85.46% of face value
• Implied yield: 23.0%
Tranche C (Longest Term)
• Amount: ₦8.72 billion (largest portion)
• Tenor: 364 days (~1 year)
• Maturity: 11 Feb 2027
• Issue price: 80.36% of face value
• Implied yield: 24.5%
Investors preferred the longer-term option.
Why Issue Prices Are Below ₦1,000Each unit has a face value (par) of ₦1,000, but investors bought at a discount.
Example:
• Buy at ₦803.60
• Receive ₦1,000 at maturity
• Difference = your return
This is how interest is paid on CP.
High Yields Reflect Market ConditionsYields between 21.5% — 24.5% suggest:
High interest-rate environment
Strong demand for funds
Attractive returns for fixed-income investors
Key Parties Involved• Lead Arranger/Dealer: Comercio Partners Capital Limited
• Paying Agent: Fidelity Bank Plc
These institutions structured and managed the issuance.
Redemption Terms✔ Investors receive full face value at maturity
✔ Payments made in Nigerian naira
✔ No periodic interest payments (discount instrument)
Why This MattersFor NGN Gram Limited
Provides fast access to large funding without long-term debt.
For Investors
Offers high short-term returns relative to savings products.
For Capital Markets
Shows active corporate borrowing and deepening fixed-income market.
Simple TakeawayNGN Gram borrowed nearly ₦10 billion from investors through short-term notes, promising high returns when they mature within 6–12 months.
