Zeenab Foods Launches Series 3 Commercial Paper Notes

Zeenab Foods Limited (ZFL) has unveiled its Series 3 Commercial Paper Notes, offering investors the opportunity to participate in a dual-tranche issuance aimed at raising up to N10 billion.

This marks a significant milestone in the company’s broader N20 billion Commercial Paper Programme.

The Series 3 issuance is divided into Tranche A and Tranche B, featuring tenures of 182 days and 270 days, respectively. Tranche A offers a yield of 28.5004 percent, while Tranche B comes with a slightly higher yield of 30.5042 percent. Subscriptions are open until January 15, 2025, with settlement scheduled for January 16, 2025.

Building on the success of previous issuances, this latest offering follows the fully redeemed Series 1 Tranche A Commercial Paper, issued on August 1, 2024, which raised N1.6 billion with a 60-day tenor, and the ongoing Series 2 Commercial Paper, spanning four tranches and valued at a cumulative N3.38 billion.

The primary goal of the Series 3 issuance is to bolster Zeenab Foods’ working capital. Proceeds will be allocated toward procuring paddy rice and other export-oriented commodities to support the company’s core operations, which include rice milling, agro-commodity exports, and food supply contracts.

Both tranches of the Series 3 Commercial Paper have received high ratings, with an “A” long-term rating from Augusto & Co. and DataPro Limited, and an “A1” short-term rating from DataPro Limited. Tranche A, discounted at 24.95 percent, matures on July 15, 2025, while Tranche B, discounted at 24.89 percent, matures on October 13, 2025. The notes are priced at 100 percent of par value, with a minimum subscription of N1, 000 and additional investments in multiples of N1, 000.

Founded in 2011, Zeenab Foods Limited has built a strong reputation in food processing and agro-commodity trading. The company’s previous financial successes, such as the full redemption of its N1.6 billion Series 1 Commercial Paper in September 2024, underscore its commitment to maintaining investor confidence.

Dr. Ayemere O. Victor, Managing Director\ Chief Executive Officer (CEO) of Zeenab Foods Limited, expressed gratitude for the trust shown by investors. “We greatly appreciate the support and confidence of the market in our brand and are pleased to have fully redeemed and repaid all subscribers to our first Commercial Paper issuance,” he said.

Zeenab Foods’ continued expansion in the capital markets demonstrates its dedication to enhancing operations and driving growth within Nigeria’s agricultural sector, reaffirming its position as a key player in the industry.