VFD Group raises N27.2 billion in oversubscribed commercial paper issuance

VFD Group Plc has raised N27.2 billion debt capital through commercial paper issuance, further enhancing the investment group’s liquidity management.

VFD Group’s Series 1 Commercial Paper (CP) was initially targeted at raising N15 billion but was increased to almost a double following strong investors’ demand. The CP issuance was under the group’s N50 billion commercial paper programme.

The Series 1 CP was issued across two tenors, 270 days and 364 days, attracting a broad base of qualified institutional investors and high-net-worth participants within Nigeria’s domestic debt market.

Executive Director, Finance, VFD Group Plc, Folajimi Adeleye, said the oversubscription was a strong vote of market confidence.

According to him, the significant oversubscription underscores sustained investor confidence in VFD Group’s diversified business model, disciplined capital management framework, and long-term growth trajectory.

“The strong investor demand and subsequent upsizing of the issuance to N27.2 billion reflect the resilience of our credit profile and the market’s confidence in our strategic direction.”

We remain committed to prudent capital management, funding diversification, and delivering sustainable value to our shareholders and stakeholders,” Adeleye said.

He outlined that the net proceeds from the issuance would be deployed toward short-term working capital requirements and general corporate purposes, in line with the group’s structured liquidity management strategy.

He noted that by leveraging its established CP programme, VFD continues to optimise its cost of capital while maintaining flexibility within an evolving macroeconomic environment.

“The successful raise further reinforces the group’s active engagement in Nigeria’s capital markets and its ability to access competitive funding through diversified channels,” Adeleye said.

He pointed out that the Series 1 CP issuance formed part of VFD Group’s broader capital strategy, which combines equity strengthening with efficient short-term funding instruments.

He said: “The strong market reception demonstrates investor alignment with the group’s operational resilience and expansion plans across its diversified portfolio”.

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