VFD Group Launches ₦15 Billion Series 1 CP Under ₦50bn Programme
VFD Group Plc has taken a decisive step back into Nigeria’s short-term debt market with the launch of a ₦15 billion Series 1 Commercial Paper (CP) issuance, a move that reflects renewed confidence in its funding strategy and operating performance.
The offer, part of the company’s broader ₦50 billion Commercial Paper Issuance Programme, opened on Monday, February 16, 2026 and is set to close on Thursday, February 19, 2026, with settlement scheduled for Friday, February 20, 2026, according to the official offer circular.
Structured in two tranches, the Series 1 CP provides investors with options across different tenors and yields that are compelling in the current Nigerian fixed-income environment.
Tranche A carries a 270-day tenor with an implied annual yield of 21.50 % and a discount rate of 18.5498 %, while Tranche B offers a 364-day tenor at an implied annual yield of 23.50 % and a discount rate of 19.0383 %. Investors can participate with a minimum subscription of ₦5 million and multiples of ₦1,000 thereafter, with taxes applicable except where exempt.
Repayment is expected to be funded from the company’s operating cash flows, and the instrument will be quoted on the FMDQ Securities Exchange Limited.
For VFD Group, this issuance marks a strategic return to commercial paper markets where it has previously established a track record of raising and redeeming short-term instruments, reinforcing its reputation as a credible issuer amid a competitive fixed-income landscape.
The company’s diversified investment portfolio spans financial services, market infrastructure, technology, real estate, hospitality, media, energy, and more, positioning it to leverage multiple revenue streams to support funding obligations.
Recent financials underline the Group’s operating resilience: for the year ended December 31, 2025, VFD Group reported a profit after tax of ₦9.681 billion, up from ₦8.693 billion in 2024, while maintaining a short-term A1 rating from DataPro with a stable outlook.
This rating and performance narrative are key to the investment case for the CP, suggesting that the Group’s short-term cash generation and credit profile support obligations as they fall due.
Investors in Nigeria’s commercial paper market often demand risk premiums that reflect both opportunity and uncertainty in a tightening capital environment, and VFD’s yields are positioned to attract both institutional and qualified retail interest relative to competing instruments.
By anchoring the repayment strategy on internally generated cash flows and a disciplined funding mix, the Group aims to balance cost efficiency with liquidity management.
The net proceeds from this Series 1 issuance will primarily be applied to meeting short-term working capital and funding requirements, strengthening the company’s ability to execute its operational plans without undue reliance on expensive borrowing.
This initiative complements other capital-raising strategies such as the recently concluded ₦50.673 billion rights issue, which was designed to solidify the Group’s capital base and underpin its long-term growth objectives.
With the commercial paper market in Nigeria experiencing increased activity as businesses seek flexible financing solutions, VFD Group’s latest issuance underscores both the opportunities and responsibilities that come with leveraging short-term debt. Strong investor participation and disciplined execution will be critical as the company navigates macroeconomic headwinds and pursues expansion across key sectors.
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