One of Nigeria’s top food processing and agro-commodity trading companies, Zeenab Foods Limited, has successfully signed a N20 billion Commercial Paper (CP) Issuance Programme on the FMDQ Securities Exchange Limited. The program was approved by the Financial Market Dealers Quotation (FMDQ) Securities Exchange Board Listings and Markets Committee.
On July 2, 2024, a signing ceremony was held at the corporate headquarters of the corporation located in the Idu Industrial Area of the Federal Capital Territory, Abuja.
Key participants in the event included ATC Professional Services (Auditor to the Issuer), Polaris Bank Limited (Collecting and Paying Agent), Greychapel Legal (Transaction Solicitor), and Pathway Advisors Limited (Investment Adviser and Transaction Sponsor).
Dr. Victor O. Ayemere, MD/CEO of Zeenab Foods Limited, claimed that the Commercial Paper program will put Zeenab Foods in a better financial position to handle the agro-commodities sector’s financial environment, which will ultimately result in increased growth prospects and long-term market success. Additionally, it will help the business fulfill its immediate capital and funding demands, which will ultimately open up more funding possibilities and offer value for all parties involved. Prior to export, the money raised from the CP issuance will be used only to buy rice paddy and improve the value addition of other agro-commodities.
He conveyed his appreciation to the Financial Adviser and Transaction Sponsor, Pathway Advisors Limited, for their work in making sure the CP Programme was approved.
“Pathway Advisors Limited is pleased to have advised Zeenab Foods Limited on the establishment of its inaugural N20 billion CP issuance program, which will enable the Company to access competitively priced short-term funding from institutional investors,” said Mr. Adekunle Alade, CEO of Pathway Advisors Limited, during the signing ceremony. It will also give the business a platform to expand its debt funding sources to non-bank investors, which will lower borrowing costs overall and free up more funds for strategic planning.
Founded in 2011, Zeenab Foods Limited is a food processing and agro-commodity trading enterprise. Zeenab Foods is divided into three primary business segments:
The company’s operations are concentrated on processing and adding value to farm produce. The main inputs for this procedure are supplied through aggregators and direct offtake agreements with farmers, and they include rice paddy, raw beans, millet, sorghum, and ginger, among other things.
ZFL is the owner of two plants in Kano State and the Federal Capital Territory (Abuja). Through the export growth facility program of the Nigerian Export Promotion Council, the company was also designated by the federal government as the operator of the Nigerian Export Trade House in China / Far East region. Zeenab Foods established a liaison office in Lagos with the aim of boosting export quantities.
