The transaction was oversubscribed, reflecting strong investor confidence in the company’s financial strength, operational track record, and growth strategy.
Strong Demand for Series 4 Commercial Paper
The Series 4 CP, initially set at N10.00 billion, attracted robust demand from institutional investors and closed at N10.22 billion.
Offered at a 26.50% yield with a 270-day tenor, the paper drew interest from a broad investor base, including Pension Fund Administrators (PFAs), asset managers, insurance companies, and other institutional investors.
The successful issuance is expected to strengthen Zeenab Foods’ working capital position, supporting continued operational efficiency and sustainable business growth.
CEO Highlights Investor Confidence and Strategic Plans
In a statement, Dr. Ayemere O. Victor, Managing Director/CEO of Zeenab Foods Limited, credited the success of the issuance to the company’s strong business fundamentals and reputation.
“The success of this issuance is a testament to the strength of our diversified business model, market reputation, and creditworthiness. My sincere appreciation to the PFAs, asset managers, insurance firms, and other institutional investors for their continued trust in Zeenab Foods Limited,” he said.
Dr. Victor also confirmed that the proceeds would be strategically deployed to fund working capital needs, ensuring the company maintains operational efficiency while pursuing growth objectives.
He further expressed gratitude to Pathway Advisors Limited, the transaction’s Financial Adviser, Transaction Sponsor, and Lead Arranger, for their role in the successful execution of the deal.
Pathway Advisors Commends Zeenab Foods’ Track Record
Commenting on the transaction, Mr. Adekunle Alade, Managing Director/CEO of Pathway Advisors Limited, described the oversubscription as a clear vote of confidence in Zeenab Foods’ performance and governance.
“We are proud to have supported Zeenab Foods Limited on another successful CP issuance. The oversubscription reflects strong investors’ confidence in Zeenab Foods Limited’s financial performance, corporate governance, and creditworthiness,” Alade said.
He highlighted the company’s strong repayment history, noting the recent successful redemption of its N3.43 billion Series 1 (Tranche B) and Series 2 (Tranches A & B) CPs, which matured in March and April 2025 and were repaid ahead of schedule.
Alade reaffirmed Pathway Advisors’ commitment to supporting credible Nigerian companies in accessing both short- and long-term funding from the capital markets.
Expanding Operations and Export Capacity
Founded in 2011, Zeenab Foods Limited operates in three main business segments:
- Rice Milling: With an installed capacity of 120 metric tonnes (MT) per day, the company plans to double this capacity by Q3 2025 to increase its market share in Nigeria’s rice sector.
- Agro-Commodity Exports: Zeenab Foods exports processed and packaged commodities—including dried split ginger, cassia tora, sesame seeds, cashew nuts, peanuts, cassava chips, and gum arabic—to China and other international markets.
- Food Supply Contracts: The company supplies grains and other agro-commodities to international donor agencies supporting humanitarian aid projects.
Zeenab Foods sources key raw materials such as rice paddy, unprocessed beans, millet, sorghum, and ginger through aggregators and direct offtake agreements with farmers.
The company operates two factories in Abuja and Kano and maintains a liaison office in Lagos to drive export volumes. It was also appointed as the operator of the Nigerian Export Trade House in the China / Far East region by the federal government through the Nigerian Export Promotion Council’s Export Expansion Facility Programme.
Strong Credit Ratings Reflect Stability
Zeenab Foods Limited has earned strong credit ratings, with an “A” rating from Agusto & Co and an A+ rating from DataPro Limited, reflecting its sound creditworthiness, prudent management, and consistent operational performance.
With this successful issuance, the company further strengthens its position as one of Nigeria’s leading agro-processors and exporters, poised for continued growth in both domestic and international markets.