TGI Foods unveils N25bn commercial papers to boost rice, soya production

The Tropical General Investments (TGI) Group has launched its ₦25 billion Series 1 & Series 2 commercial papers under its 3-year ₦100 billion commercial paper issuance program.

The program according to the company is aimed to support the working capital requirements of TGI Foods’ co-promoters, West African Soy Industries Limited (WASIL) and WACOT Rice Limited, both of which are parts of the Group’s food manufacturing and processing footprints in Nigeria.

“WASIL is one of Nigeria’s largest oilseed processors, operating a 225,000 MT oilseed complex and a 270,000 MT refinery. The company produces Golden Terra Soya Oil and high-protein soybean meal, with strong domestic and international demand. With a 64% 5-year CAGR, WASIL procures soybeans from Katsina, Oyo, Kwara, and Benue States.

“WACOT Rice Limited, part of TGI Group, is a leading African rice miller with an annual capacity of 120,000 MT. The company produces premium parboiled rice under the Big Bull Rice and Patriot Rice brands, competing favourably with imports. WACOT Rice supports over 5,000 farmers through its out-grower program across Northern Nigeria and collaborates with partners like USAID to enhance rice production and food security.” the company said in a statement on Tuesday.

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Commenting on the program, Farouk Gumel, the Vice Chairman of TGI Group, noted that the issuance demonstrates the company’s continued determination to invest in Nigeria’s food sector and support the nation’s ambition of self-sufficiency in staple food items.

”This program offers investors an excellent opportunity to participate in the most inclusive and impact sector of the Nigerian economy. The jobs we create in the agriculture and food value chain are second to none. Such an investment will positively impact many rural communities while delivering competitive returns to urban investors”, Gumel said.

He explained that the funds raised from the series will be used to procure 190,000 MT of rice paddy and 160,000 MT of Soybeans from farmers during the 2024 wet harvest season. ”It is estimated that this procurement will support thousands of farmers across Nigeria. In subsequent years, funds from this Program will also be used to procure grains from Internally Displaced grower Farmers participating in the joint TGI Group/United Nations Refugee Agency (UNHCR) Farmer program,” he added.

Also commenting on the issuance, Humphrey Oriakhi, Managing Director/CEO of PAC Capital Limited said that the initiative presents a unique opportunity for investors to align with a purpose-driven venture that promises both substantial financial returns and positive social impact.