Credit Direct Finance Company Limited (Credit Direct), a member of the FCMB Group and the leading non-bank consumer lending institution in Nigeria, announces the successful completion of its debut commercial paper issuance on the FMDQ platform. The issuance witnessed an oversubscription of 137%, indicating strong investor confidence in the company.
Initially targeting to raise N5 billion, split between “Series I—182 days at a yield of 15% and Series II—268 days at a yield of 16% Commercial Paper Issuances” as part of a N10 billion Commercial Paper program, Credit Direct successfully secured N6.86 billion at face value from investors. This endeavour reaffirms the investment community’s steadfast faith in Credit Direct’s trajectory and the bright future that lies ahead. The proceeds from this issuance will diversify the finance company’s funding base and support the current wave of growth the company is experiencing as a result of its successful digital transformation.
Mr. Ladi Balogun, the Chairman the board of Directors at Credit Direct, stated, “The positive response from the institutional investor community is recognition of the company’s track record in terms of risk management, corporate governance and financial performance, as well as the important role it plays in the financial ecosystem. Credit Direct has been a consistent beacon of hope for over 1.7 million customers, previously excluded from accessing credit in such a convenient manner.”
Echoing this sentiment, the Managing Director of Credit Direct, Mr. Chukwuma Nwanze, mentioned, “We are immensely proud and grateful for the overwhelming response from the investor community. The over-subscription indicates the strength of Credit Direct’s reputation in the financial market and underscores the company’s sound financial health. This maiden issuance not only empowers us to further our goals but also reinforces our commitment to being a key player in Nigeria’s financial landscape. As Credit Direct continues its brisk expansion, serving millions nationwide, we are determined to utilize these funds judiciously and ensure optimal returns for our stakeholders. We would like to thank FMDQ for the role it played during this transaction and all the dealers and investors who contributed to the success of our debut launch. We also want to thank FCMB Capital Markets Limited who acted as the lead arranger and dealer for this transaction as well as CardinalStone Partners Limited and United Capital PLC who both participated as dealers in this transaction.”
Credit Direct, known for its excellent service delivery and commitment to driving financial inclusion, anticipates leveraging the success of this issuance to further bolster its offerings and deliver unmatched value to its customers and investors alike.
About Credit Direct Finance Company Limited
Credit Direct Finance Company Limited is Nigeria’s leading non-bank consumer lending company, licensed by the Central Bank of Nigeria (CBN) as a Finance House. The company was established in 2006 and has served over 1.7 million beneficiaries across Nigeria since inception. With footprint across 25 states, Credit Direct provides consumer and working capital loans to individuals, merchants, and small businesses across the country. Credit Direct is a wholly owned subsidiary of the FCMB Group.