Rare Gems taps Nigeria's debt market for $2.45M in commercial paper

What's the deal? Rare Gems Group has raised ₦3.3 billion (about $2.45 million) through two tranches of commercial paper listed on the Nigerian Exchange (NGX). The company listed ₦2.36 billion in Series 1 Tranche A and ₦941 million in Tranche B under a ₦20 billion issuance programme, with Pathway Advisors LimitedDealroom has a profile for this one. Try Dealroom → as lead sponsor.

Why now? Rare Gems is tapping short-term debt to fund working capital and other near-term obligations, an alternative to traditional bank borrowing. Commercial paper lets companies raise cash directly from investors over short tenors.

Mind the cost: The pricing shows how expensive short-term corporate funding has become. The 305-day Tranche A carries a 25% yield, while the 364-day Tranche B yields 24.5% — above the roughly 21% average for recent commercial paper, amid elevated benchmark rates.

The signal: By size, the deal sits near the bottom of comparable funding rounds. But it is more notable as another listed-market transaction: Nigeria's commercial paper market added ₦1.51tn across 131 series in the first nine months of 2026, yet only ₦216.1bn of that was listed on the NGX. Rare Gems' raise pushes more short-term corporate funding onto the Exchange — far smaller than Dangote CementDealroom has a profile for this one. Try Dealroom →'s ₦119.9bn February listing, but part of the same shift.

Read more: businessday.ng

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