Zeenab Foods Limited’s ₦45 billion hybrid commercial paper offer attracted ₦54.4 billion in subscriptions, exceeding its target by approximately 20.9%, according to transaction adviser Pathway Advisors Limited.
The Nigerian company’s offer combined conventional and non-interest-based commercial paper. Both tranches were oversubscribed, with total demand exceeding the amount offered by ₦9.4 billion.
Pathway Advisors said it acted as Transaction Sponsor, Financial Adviser, Lead Issuing House and Arranger.
Zeenab Foods commercial paper subscription results
The conventional tranche attracted ₦28.8 billion against a ₦25 billion target. The non-interest-based tranche received ₦25.6 billion against a ₦20 billion target.
| Instrument | Offer size | Subscriptions | Subscription level |
|---|---|---|---|
| Conventional commercial paper | ₦25 billion | ₦28.8 billion | 115.2% |
| Non-interest-based commercial paper | ₦20 billion | ₦25.6 billion | 128.0% |
| Total | ₦45 billion | ₦54.4 billion | 120.9% |
The figures represent investor subscriptions. The announcement did not specify the final amount allotted or whether subscriptions above the original ₦45 billion offer size were accepted.
Conventional and non-interest investor participation
According to Pathway Advisors, the hybrid structure provided Zeenab Foods with access to different sources of short-term funding and enabled participation from investors in both conventional and non-interest-based instruments.
Adekunle Alade, identified in the statement as Pathway Advisors’ founder and chief executive officer, thanked participating pension fund administrators, insurance companies, asset managers, investment funds, corporates and other institutional and sophisticated investors.
Alade said the response reflected demand for financing structures serving both investment segments. Pathway Advisors also described the subscriptions as a sign of investor confidence in Zeenab Foods’ business and growth plans.
Funding to support operations and growth
Victor Ayemere, identified in the release as Zeenab Foods’ chief executive officer, said the offer would provide additional funding to support the company’s growth and strategic objectives.
“We are particularly pleased that the hybrid structure enabled participation from both conventional and non-interest-based investors.”
Victor Ayemere, Chief Executive Officer, Zeenab Foods Limited
Ayemere said the company intended to deploy the funds to strengthen operations and support sustainable growth. The statement did not provide a detailed allocation of proceeds.
Transaction terms
The announcement did not disclose the instruments’ tenors, yields or profit rates, settlement dates, credit ratings or the specific structure used for the non-interest-based tranche.
Those terms would be needed to assess the instruments beyond the subscription figures. Oversubscription describes demand relative to the offer size; it does not establish the issuer’s credit quality or guarantee repayment.
Pathway Advisors provides capital-raising, financial advisory and transaction services to corporate and institutional clients. Further information about the firm is available on its website.
Source: Press release supplied by Pathway Holdings on behalf of Pathway Advisors Limited.