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Coleman Redeems Maiden Commercial Paper

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Coleman Technical Industries Limited has announced the full repayment of its N20 billion Series one Commercial Paper (CP) issuance to investors.

The company promptly fulfilled its obligation on the Series one CP issued for 180 days on July 13, 2021, which matured on January 10, 2022. The Company has informed FMDQ Securities Exchange Plc of the payment in line with best practice.

Coleman accessed the CP market for the first-time last year, in a bid to increasingly diversify its funding structure.

With a successful outing, the Series one CP issuance attracted High Net worth Individuals, Asset Managers, Insurance companies, and Pension Fund Administrators.

The company in a release yesterday thanked the investing community for their confidence in its instrument, adding, “It remains optimistic that the successful payment of investors will avail us the global visibility needed to achieve our long-term capital plans.

“We congratulate the professional parties involved in the process and remain optimistic that the successful payment of investors will avail us the global visibility needed to achieve our long-term capital plans.”

Meanwhile, the company has also completed the launch of a N50 billion bond programme after its N20 billion commercial paper programme in 2021, in its bid to expand its manufacturing capacity.

The cables and wires manufacturer launched the bond programme, with Coronation Merchant Bank as lead issuing house on the transaction at its head office in Ogun State.

The head of Investment Banking at Coronation Merchant Bank, Suru Daniels, stated that, the firm had to set up a special purpose vehicle, Coleman Funding SPV Plc, to access the capital market without compromising its governance as a private firm.

The chief executive officer and managing director, Coleman, George Onafowokan, stated that, the company currently sourced 80 per cent of its raw materials in-country through its backward integration drive, reducing its dependence on foreign exchange.

 

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