Zeenab Foods raises $34M in oversubscribed hybrid commercial paper offer
What's the deal? Zeenab FoodsDealroom has a profile for this one. Try Dealroom → has raised ₦45 billion (about $34 million) through a hybrid commercial paper offer, drawing ₦54.4 billion in institutional subscriptions. Pathway AdvisorsDealroom has a profile for this one. Try Dealroom → acted as transaction sponsor, financial adviser, lead issuing house, and arranger.
How was it structured? The offer split into a ₦25 billion conventional commercial paper tranche and a ₦20 billion non-interest tranche. That dual structure opened the deal to both interest-based and non-interest-based investors.
Who bought in? The conventional tranche drew ₦28.8 billion in subscriptions, or roughly 115% of target; the non-interest tranche pulled ₦25.6 billion, about 128%. Combined, the offer was oversubscribed at approximately 121%.
Participants included pension fund administrators, insurance companies, asset management firms, investment funds, and corporates, according to Pathway Advisors.
Why it matters: The oversubscription "underscores the depth, resilience and evolving sophistication of Nigeria's capital market," said Adekunle Alade, founder and chief executive officer of Pathway Advisors. Commercial paper is short-term debt, giving Zeenab Foods diversified access to working capital.
The signal: The raise ranks among the larger debt deals of its kind, and the appetite for a non-interest tranche points to growing demand for Sharia-compliant financing alongside conventional instruments. It follows a run of Pathway-arranged issuances, including a ₦100 billion series for Pivot Integrated EnergyDealroom has a profile for this one. Try Dealroom → — a sign of deepening corporate debt activity in Nigeria.
Read more: investadvocateng.com
Image credit: DFID - UK Department for International Development
