Zeenab Foods signs N20bn commercial paper to boost productivity

Zeenab Foods Limited, a Nigeria food processing and agro-commodity company, has signed a N20 billion commercial paper (CP) issuance programme on the FMDQ Securities Exchange Limited.

In a statement, the company said, the program, approved by the FMDQ’s Board Listings and Markets Committee, will provide Zeenab Foods with greater access to funding for its operations.

The signing ceremony, which was held on July 2, 2024 at Zeenab Foods’ headquarters in Abuja, brought together key stakeholders involved in the program’s establishment.

“Pathway Advisors Limited acted as the Financial Adviser and Transaction Sponsor, while Polaris Bank Limited served as the Collecting and Paying Agent. Greychapel Legal provided legal counsel for the transaction, and ATC Professional Services served as the Issuer’s Auditor,” the statement disclosed.

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Victor Ayemere, Zeenab Foods’ managing director/CEO, said “The CP program will strengthen Zeenab Foods’ position in the agro-commodity sector,” adding, “This will open doors for growth opportunities and long-term success. Importantly, it addresses our short-term funding needs, diversifies our financing options, and ultimately creates value for our stakeholders.”

Rge statement further disclosed that the proceeds from the CP issuance will be used strategically to purchase rice paddy and enhance the value addition of other agro-commodities destined for export.

Adekunle Alade, CEO of Pathway Advisors Limited, said “This initiative offers Zeenab Foods access to competitively priced, short-term funding from institutional investors. It also allows them to tap into non-bank financing sources, expanding their financial resources for strategic planning while potentially reducing borrowing costs.”