Zeenab Foods targets N10bn from Series 3 commercial paper issuance

Zeenab Foods Limited (Zeenab Foods) is targeting raising up to N10 billion from Series 3 (Tranche A & B) Commercial Paper Notes under its N20 billion Commercial Paper Programme.

The offer which is already open is scheduled to close on Wednesday January 15, 2025.

Zeenab Foods Limited is a food processing and agro-commodity trading company established in 2011.

As part of the company’s long-term strategy to boost financial flexibility and strengthen its competitive advantage in the sector, Zeenab Foods is raising funds from the Nigeria Debt Market via the Issuance of Commercial Papers.

This will support the company’s short-term capital and funding requirements, enabling the company to buy paddy rice and other agro commodities for export.

Zeenab Foods had demonstrated an excellent track record of fulfilling its obligations at maturity.

Previously, Zeenab Foods issued a Series 1 Tranche A Commercial Paper totaling N1.6 billion on August 1, 2024, with a 60-day tenor and was fully redeemed on September 30, 2024.

The company operates three main business segments namely: Milling of Paddy Rice: The rice mill has an installed rice milling capacity of 120 metric tonnes (MT) per day with an average annual utilization of 84 percent. The Company plans to double its current rice milling capacity by 2025 to grow its share of the rice market in Nigeria.

Export of Processed and Packaged Agro Commodities: Zeenab Foods exports items such as Dried Split Ginger, Cassia Tora, Sesame Seeds, Cashew Nuts, Peanuts, Cassava Chips, Gum Arabic etc to China and other countries.

Food Supply Contracts: Zeenab Foods supplies grains and other agro-commodities to international donor agencies like the United Nations World Food Programme (UN WFP), which the agency uses to support various humanitarian aid projects. These include Beans, Sorghum, Millet, Maize, etc.

The Company’s operation focuses on value addition and farm produce processing. The key inputs to this process include paddy rice, unprocessed beans, millet, sorghum, and ginger among others, which are sourced through aggregators and direct offtake agreements with farmers.

Zeenab Foods owns two factories located in the Federal Capital Territory (Abuja) and Kano State. In 2022, Zeenab Foods was appointed the operator of the Nigerian Export House in China and recently commissioned a liaison office in Lagos to drive export volumes.