NGN Gram Raises Funds via ₦10bn Commercial Paper Programme Listed on NGX

[Olori Uwem]

NGN Gram Raises Funds via ₦10bn Commercial Paper Programme Listed on NGX

NGN Gram Limited has tapped the short-term debt market to raise billions of naira, with its instruments now tradable on the exchange

Here’s a clear breakdown

What Was Listed?

Short-term debt instruments called Commercial Paper (CP) were listed on:

Nigerian Exchange Limited (NGX)

These are used by companies to borrow money from investors for a limited period.

Total Programme Size
• Overall CP programme: ₦10 billion
• Current issuance (Series 1): Divided into three tranches
• Total issued across the three: ≈ ₦10 billion

Shows strong funding needs and investor participation.

What Commercial Paper Means

Commercial Paper is:

✔ Short-term borrowing instrument
✔ Typically issued by large companies
✔ Repaid at maturity with interest (via discount pricing)
✔ Lower risk than many unsecured corporate debts

Often used for working capital or operational funding.

Breakdown of the Three Tranches

Tranche A (Shortest Term)
• Amount: ₦809.32 million
• Tenor: 182 days (~6 months)
• Maturity: 13 Aug 2026
• Issue price: 90.32% of face value
• Implied yield: 21.5%

Tranche B (Medium Term)
• Amount: ₦472.39 million
• Tenor: 270 days (~9 months)
• Maturity: 9 Nov 2026
• Issue price: 85.46% of face value
• Implied yield: 23.0%

Tranche C (Longest Term)
• Amount: ₦8.72 billion (largest portion)
• Tenor: 364 days (~1 year)
• Maturity: 11 Feb 2027
• Issue price: 80.36% of face value
• Implied yield: 24.5%

Investors preferred the longer-term option.

Why Issue Prices Are Below ₦1,000

Each unit has a face value (par) of ₦1,000, but investors bought at a discount.

Example:
• Buy at ₦803.60
• Receive ₦1,000 at maturity
• Difference = your return

This is how interest is paid on CP.

High Yields Reflect Market Conditions

Yields between 21.5% — 24.5% suggest:

High interest-rate environment
Strong demand for funds
Attractive returns for fixed-income investors

Key Parties Involved
• Lead Arranger/Dealer: Comercio Partners Capital Limited
• Paying Agent: Fidelity Bank Plc

These institutions structured and managed the issuance.

Redemption Terms

✔ Investors receive full face value at maturity
✔ Payments made in Nigerian naira
✔ No periodic interest payments (discount instrument)

Why This Matters

For NGN Gram Limited

Provides fast access to large funding without long-term debt.

For Investors

Offers high short-term returns relative to savings products.

For Capital Markets

Shows active corporate borrowing and deepening fixed-income market.

Simple Takeaway

NGN Gram borrowed nearly ₦10 billion from investors through short-term notes, promising high returns when they mature within 6–12 months.

 

[Blessed Amara]

It’s encouraging to see more private sector participation in the domestic debt market.

 

[Vicole]

NGN Gram Raises Funds via ₦10bn Commercial Paper Programme Listed on NGX

NGN Gram Limited has tapped the short-term debt market to raise billions of naira, with its instruments now tradable on the exchange

Here’s a clear breakdown

What Was Listed?

Short-term debt instruments called Commercial Paper (CP) were listed on:

Nigerian Exchange Limited (NGX)

These are used by companies to borrow money from investors for a limited period.

Total Programme Size
• Overall CP programme: ₦10 billion
• Current issuance (Series 1): Divided into three tranches
• Total issued across the three: ≈ ₦10 billion

Shows strong funding needs and investor participation.

What Commercial Paper Means

Commercial Paper is:

✔ Short-term borrowing instrument
✔ Typically issued by large companies
✔ Repaid at maturity with interest (via discount pricing)
✔ Lower risk than many unsecured corporate debts

Often used for working capital or operational funding.

Breakdown of the Three Tranches

Tranche A (Shortest Term)
• Amount: ₦809.32 million
• Tenor: 182 days (~6 months)
• Maturity: 13 Aug 2026
• Issue price: 90.32% of face value
• Implied yield: 21.5%

Tranche B (Medium Term)
• Amount: ₦472.39 million
• Tenor: 270 days (~9 months)
• Maturity: 9 Nov 2026
• Issue price: 85.46% of face value
• Implied yield: 23.0%

Tranche C (Longest Term)
• Amount: ₦8.72 billion (largest portion)
• Tenor: 364 days (~1 year)
• Maturity: 11 Feb 2027
• Issue price: 80.36% of face value
• Implied yield: 24.5%

Investors preferred the longer-term option.

Why Issue Prices Are Below ₦1,000

Each unit has a face value (par) of ₦1,000, but investors bought at a discount.

Example:
• Buy at ₦803.60
• Receive ₦1,000 at maturity
• Difference = your return

This is how interest is paid on CP.

High Yields Reflect Market Conditions

Yields between 21.5% — 24.5% suggest:

High interest-rate environment
Strong demand for funds
Attractive returns for fixed-income investors

Key Parties Involved
• Lead Arranger/Dealer: Comercio Partners Capital Limited
• Paying Agent: Fidelity Bank Plc

These institutions structured and managed the issuance.

Redemption Terms

✔ Investors receive full face value at maturity
✔ Payments made in Nigerian naira
✔ No periodic interest payments (discount instrument)

Why This Matters

For NGN Gram Limited

Provides fast access to large funding without long-term debt.

For Investors

Offers high short-term returns relative to savings products.

For Capital Markets

Shows active corporate borrowing and deepening fixed-income market.

Simple Takeaway

NGN Gram borrowed nearly ₦10 billion from investors through short-term notes, promising high returns when they mature within 6–12 months.

NGN Gram’s ₦10bn commercial paper is a smart way to tap short-term funding. Investors get attractive yields (21.5–24.5%) while the company gains quick access to capital for operations. classic win-win in a high-interest market.

 

[Little Princess]

NGN Gram Raises Funds via ₦10bn Commercial Paper Programme Listed on NGX

NGN Gram Limited has tapped the short-term debt market to raise billions of naira, with its instruments now tradable on the exchange

Here’s a clear breakdown

What Was Listed?

Short-term debt instruments called Commercial Paper (CP) were listed on:

Nigerian Exchange Limited (NGX)

These are used by companies to borrow money from investors for a limited period.

Total Programme Size
• Overall CP programme: ₦10 billion
• Current issuance (Series 1): Divided into three tranches
• Total issued across the three: ≈ ₦10 billion

Shows strong funding needs and investor participation.

What Commercial Paper Means

Commercial Paper is:

✔ Short-term borrowing instrument
✔ Typically issued by large companies
✔ Repaid at maturity with interest (via discount pricing)
✔ Lower risk than many unsecured corporate debts

Often used for working capital or operational funding.

Breakdown of the Three Tranches

Tranche A (Shortest Term)
• Amount: ₦809.32 million
• Tenor: 182 days (~6 months)
• Maturity: 13 Aug 2026
• Issue price: 90.32% of face value
• Implied yield: 21.5%

Tranche B (Medium Term)
• Amount: ₦472.39 million
• Tenor: 270 days (~9 months)
• Maturity: 9 Nov 2026
• Issue price: 85.46% of face value
• Implied yield: 23.0%

Tranche C (Longest Term)
• Amount: ₦8.72 billion (largest portion)
• Tenor: 364 days (~1 year)
• Maturity: 11 Feb 2027
• Issue price: 80.36% of face value
• Implied yield: 24.5%

Investors preferred the longer-term option.

Why Issue Prices Are Below ₦1,000

Each unit has a face value (par) of ₦1,000, but investors bought at a discount.

Example:
• Buy at ₦803.60
• Receive ₦1,000 at maturity
• Difference = your return

This is how interest is paid on CP.

High Yields Reflect Market Conditions

Yields between 21.5% — 24.5% suggest:

High interest-rate environment
Strong demand for funds
Attractive returns for fixed-income investors

Key Parties Involved
• Lead Arranger/Dealer: Comercio Partners Capital Limited
• Paying Agent: Fidelity Bank Plc

These institutions structured and managed the issuance.

Redemption Terms

✔ Investors receive full face value at maturity
✔ Payments made in Nigerian naira
✔ No periodic interest payments (discount instrument)

Why This Matters

For NGN Gram Limited

Provides fast access to large funding without long-term debt.

For Investors

Offers high short-term returns relative to savings products.

For Capital Markets

Shows active corporate borrowing and deepening fixed-income market.

Simple Takeaway

NGN Gram borrowed nearly ₦10 billion from investors through short-term notes, promising high returns when they mature within 6–12 months.

A good move there. We need more of commercial paper listings to expand investment options

 

[Little Princess]

It’s encouraging to see more private sector participation in the domestic debt market.

Yes it is

 

[Little Princess]

NGN Gram’s ₦10bn commercial paper is a smart way to tap short-term funding. Investors get attractive yields (21.5–24.5%) while the company gains quick access to capital for operations. classic win-win in a high-interest market.

Spot on

 

[Rofiat]

HOW TO IDENTIFY AN UNDERVALUED STOCKS

To identify undervalued stocks, investors look for companies trading below their intrinsic value(The value the stock actually worth in the market) using financial ratios, valuation models, and qualitative analysis.

The key is to spotting temporary mispricing where strong fundamentals are not yet or fully captuded in the market price.

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SEVERAL TOOLS TO IDENTIFY THE UNDERVALUED STOCKS ARE:


1. VALUATION RATIO
a) Price-to-Earnings (P/E): Compare a company’s P/E to industry peers. A lower P/E may signal under valuation if earnings are stable.

b) Price-to-Book (P/B): If the stock trades below its book value, it may be undervalued.

c) PEG Ratio (Price/Earnings to Growth): Adjusts P/E for growth. A PEG < 1 often indicates under valuation.

d) Dividend Yield: Higher-than-average yields can suggest under valuation if payouts are sustainable.

2. DISCOUNTED CASH FLOW(DCF)ANALYSIS

- Estimate future cash flows and discount them to present value. If the intrinsic value is higher than the current market price, the stock is undervalued.

3. MARGIN OF SAFETY
Popularized by Benjamin Graham, this means buying stocks at a significant discount to their estimated intrinsic value to reduce risk.

4. QUALITATIVE FACTOR
- Strong management team with a track record of execution.
- Competitive advantage (brand, patents, market share).
- Sector cycles: A company may be undervalued if its industry is temporarily out of favor.

For effective identify an undervalued stock, combine quantitative analysis (ratios, DC F) with qualitative insights (management, industry trends). The goal is to find companies with strong fundamentals trading at a discount due to temporary market mis pricing — and then hold them until the market corrects.


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