Get Guardian on Google…Redeem N28.6bn Series 21 at maturity
Johnvents Industries Limited has disclosed that its N80 billion Series 1 Commercial Paper issuance was oversubscribed, signaling investor confidence in its operations and growth trajectory.
According to the company, the issuance, floated under its N250 billion Commercial Paper Programme, attracted subscriptions exceeding the offer size, reflecting strong institutional participation and sustained interest in Johnvents’ business operations and expansion plans.
The successful debt sale comes as the agribusiness company intensifies efforts to expand its operations, increase processing capacity, and strengthen its position in Nigeria’s agricultural value chain.
Proceeds from the issuance will be deployed to support the company’s seasonal working capital requirements, particularly commodity procurement and processing during the current operating cycle, enabling Johnvents to secure raw materials within critical seasonal windows and sustain operations across its processing facilities.
Johnvents has evolved from an agricultural commodity sourcing and trading business into an integrated agribusiness and food manufacturing platform, with operations spanning commodity aggregation, storage, processing, exports, and branded consumer products.
The company said its next phase of growth would focus on increasing processing throughput, improving capacity utilization, expanding into higher-value consumer goods, and strengthening domestic distribution and export relationships.
Speaking on the development, the Group Managing Director, John Alamu, described the oversubscription as a strong vote of confidence in the company’s vision of connecting agriculture with industry, exports, and consumer markets.
“The response to this issuance is an important vote of confidence in what Johnvents is building: a Nigerian business that connects agriculture to industry, exports, and everyday consumer products.
“Our ambition is to create more value locally and build a company capable of competing across markets. That confidence also places a responsibility on us to execute with discipline,” Alamu said.
Alamu assured investors that the proceeds would be applied in line with the approved offer documents, while the company would maintain its focus on liquidity management and timely repayment obligations.
The successful issuance coincided with the full redemption at maturity of the company’s Series 21 Commercial Paper, with an aggregate face value of N28.64 billion.
The company said the repayment was completed in accordance with the terms of the instrument, underscoring its commitment to liquidity planning and meeting its obligations to investors.
The Group Head of Treasury, Samuel Olaifa, explained that the issuance was structured around the company’s seasonal working capital cycle, particularly the procurement, processing, and shipment of cocoa and other agricultural commodities.
“Closing this issuance while fully redeeming Series 21 at maturity reflects our focus on matching funding to operating cash flows, managing maturities deliberately and maintaining adequate liquidity throughout the business cycle,” Olaifa said.
The company disclosed that the transaction followed an extensive investor engagement program, including management meetings and tours of selected Johnvent facilities, which allowed investors to assess its operations, processing capacity, inventory cycle, and integrated value chain.
The Acting Managing Director of Regius Capital, Kayode Omosebi, said the engagements provided investors with a clearer understanding of the relationship between the company’s operating assets, inventory cycle, cash generation, and repayment capacity.
He noted that the oversubscription reflected institutional interest in well-structured credit opportunities and the importance of transparent engagement between companies and investors.
The transaction was led by United Capital Plc and Regius Capital Limited, alongside other joint issuing houses, advisers, and transaction parties.
Johnvents said its expansion strategy was also aimed at strengthening Nigeria’s non-oil export base, creating employment opportunities, and supporting businesses across its network of farmers, aggregators, transporters, distributors, and service providers.
