Mike Adenuga, a Nigerian billionaire has ventured into the cashew processing industry through Julius Berger, a leading construction firm partly owned by him. This comes as the company successfully completed its first-ever $65.3 million commercial paper (CP) issuance in Nigeria’s fixed-income market.
The issuance which solidifies its position in the Nigerian construction industry is a significant milestone for the firm. The commercial papers offered a 182-day Series-1 allocation with a 14-per cent yield and a 267-day Series-2 issuance priced at a 15 per cent yield.
With the $65.3-million capital injection, the company’s financial capacity will be propelled to further diversify into high-growth sectors. The cashew processing enterprise is solely aimed at diversifying the organization’s operations.
The CP issuance attracted significant demand from investors, who demonstrated a strong belief in the management and vision of the company, as it moves into cashew processing. Some of these investors include pension fund administrators, asset managers, insurance companies, banks, and high-net-worth individuals.
Speaking on the issuance, Managing Director, Lars Richter expressed excitement over the successful completion of Julius Berger’s debut CP Issuance in the Nigerian fixed-income market. He noted that this significant feat brings the company’s strength, sustainability and the confidence that Nigeria places in the brand to the fore.
Richter also appreciated those who invested for supporting the transaction.
Adenuga and Julius Berger
Nigeria’s business mogul, Adenuga is the founder of Globacom Limited, the third-largest telecom service provider in Nigeria. He also owns an oil exploration outfit, Conoil Producing. Adenuga holds a 25.1-per cent stake in Julius Berger through his company Goldstones Estates Limited. His stake in the construction firm amounts to 401,834,494 ordinary shares.
His daughter, Belinda Ajoke Disu, currently sits on the board of directors. Adenuga’s stake in Julius Berger is valued at N9.8 billion ($21.3 million).
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