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RMB Nigeria continues to demonstrate leadership in Debt Capital Markets, structuring strategic financing solutions that enable businesses to grow, innovate, and drive economic progress. Through our expertise and market insights, we have partnered with key clients to unlock capital, strengthen key sectors, and support long-term growth in Nigeria’s financial markets.
GZ Industries Limited
Client challenge
GZ Industries Limited (GZ) was seeking to diversify its short-term funding options from the bank loan markets to a new category of investors from the debt capital markets. It was also seeking cheaper cost funding to reduce its finance costs. GZ had no prior interaction with the debt capital markets in Nigeria and required a trusted adviser to guide it through the process.
The RMB solution
RMB’s Debt Capital Markets team provided valuable advice to GZ through the credit ratings process, ensuring it obtained the best possible rating. RMB also jointly led the co-ordination of respective professional parties in meeting agreed timelines. RMB organised investor engagements and guided executives and management of GZ through interactions with qualified institutional investors.
RMB’s role in the transaction contributed to the overwhelming success of the transaction, with an oversubscription of 33.33%. GZ was seeking to raise NGN15 billion for its maiden series 1 and 2 commercial paper, but issued NGN20 billion for its inaugural issuance.
Our deep distribution reach ensured that a wide breadth of investors (banks, pension funds, insurance companies, asset managers) participated in commercial paper offerings, with pricing tension achieved for the company.
Results and benefits
- First foray into the debt capital markets
- Unlocking a new funding vehicle
- Reduction in finance cost
- Less reliance on the bank loan markets for short-term funding
- Attracting new investors (debt) from the debt capital markets
- Establishing a commercial paper programme
| Client | GZ Industries Limited |
|---|---|
| Size of the deal | Series 1 and 2: N20 billion |
| RMB's role | Joint lead arranger |
| Capabilities |
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| Sector | Manufacturing – Aluminium beverage cans |
| Country | Nigeria |
United Capital Plc
Client challenge
United Capital Plc is a frequent issuer in the Nigerian debt capital markets. Further to the expiration of its commercial paper programme, the company was seeking to establish a new programme to enable it to meet its working capital requirements, achieve a cheaper cost of funding and attract new investors. RMB was appointed as the sole lead arranger to establish the programme.
The RMB solution
RMB co-ordinated respective professional parties and led engagements with the regulator in meeting United Capital Plc’s objective of obtaining timely approval for the new NGN100 billion commercial paper programme. RMB led investor engagements with United Capital Plc, issuing NGN36.07 billion in series 1 – 6 of commercial papers in 2023.
Our deep distribution reach ensured that new investors (banks, pension funds, insurance companies, asset managers) participated in commercial paper offerings, with pricing tension achieved for the company.
Results and benefits
- Reduction in finance cost
- Less reliance on the bank loan markets for short-term funding
- Attracting debt investors
- Establishing a commercial paper programme
| Client | United Capital Plc |
|---|---|
| Size of the deal |
|
| RMB's role | Lead arranger |
| Capabilities |
|
| Sector | Financial Services |
| Country | Nigeria |
Dufil Prima Foods Limited
Client challenge
Dufil Prima Foods Limited is a frequent issuer in the Nigerian debt capital markets. Further to the expiration of its commercial paper programme, the company was seeking to establish a new upsized programme. It had a prior commercial programme of NGN30 billion, but decided to upsize the new programme due to its growing working capital requirements.
The establishment of the programme will enable Dufil Prima Foods Limited to meet its working capital requirements, achieve cheaper cost of funding and attract new investors. RMB was appointed as the joint lead arranger to establish the programme.
The RMB solution
RMB co-ordinated respective professional parties in meeting Dufil Prima Food Limited’s objective of obtaining timely approval for the establishment of a new upsized NGN50 billion commercial paper programmes. RMB jointly led investor engagements with Dufil Prima Food Limited, issuing NGN47.19 billion in series 1 – 3 of commercial papers in 2023.
Our deep distribution reach ensured a wide breadth of investors (banks, pension funds, insurance companies, asset managers, high net-worth individuals) participated in commercial paper offerings, with pricing tension achieved for the company.
Results and benefits
- Reduction in finance cost
- Less reliance on the bank loan markets for short-term funding
- Attracting debt investors
- Establishing a commercial paper programme
| Client | Dufil Prima Foods Limited |
|---|---|
| Size of the deal |
|
| RMB's role | Joint lead arranger |
| Capabilities |
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| Sector | Fast Moving Consumer Goods |
| Country | Nigeria |
African Foundries Limited
Client challenge
African Foundries Limited was seeking to diversify its short-term funding options from the bank loan markets to a new category of investors from the debt capital markets. African Foundries Limited was also seeking cheaper cost funding to reduce its finance costs. It had no prior interaction with the debt capital markets in Nigeria and required a trusted adviser to guide it through the process.
The RMB solution
RMB’s Debt Capital Markets team provided valuable advice to African Foundries Limited throughout the process to ensure the best outcome. RMB also jointly organised investor engagements, guiding executives and management of African Foundries Limited through interactions with qualified institutional investors.
RMB’s role in the transaction contributed to the overwhelming success of the transaction, with an oversubscription of 100%. African Foundries Limited was seeking to raise NGN10 billion for its maiden series 1 and 2 commercial paper, but issued NGN20 billion for its inaugural issuance.
Our deep distribution reach ensured that a wide breadth of investors (banks, pension funds, insurance companies, asset managers) participated in commercial paper offerings, with pricing tension achieved for the company.
Results and benefits
- First venture into the debt capital markets
- Unlocking a new funding vehicle
- Reduction in finance cost
- Attracting debt investors
| Client | African Foundries Limited |
|---|---|
| Size of the deal | Series 1 and 2: N20 billion |
| RMB's role | Joint dealer |
| Capabilities |
|
| Sector | Manufacturing - Steel |
| Country | Nigeria |
