Agri firm raises N5.3bn in debut CP issuance

n n

Technology-driven agricultural company, ThriveAgric, has formally announced the successful debut of its commercial paper issuance, following a signing ceremony held in Lagos on Tuesday.

n

The Series 1 issuance was oversubscribed due to substantial institutional demand, enabling the firm to raise its initial N5bn target and close the transaction at approximately N5.3bn.

n

The transaction follows the Securities and Exchange Commission’s approval of ThriveAgric’s N50bn Commercial Paper Programme, under which the Series 1 issuance was completed. The programme provides the company with a capital market platform to support its growing working capital and operational expansion.

n

Reflecting on the milestone, the Chief Executive Officer and Co-Founder of ThriveAgric, Uka Eje, said, “Securing SEC approval for our N50bn CP Programme and completing this oversubscribed N5bn Series 1 raise validates our disciplined approach to corporate governance and capital management.

n

Beyond the numbers, this institutional backing provides us with the financial flexibility to scale our operations, deepen our outgrower networks, and ensure prompt off-take for smallholder farmers.

n

“We are deeply grateful to our investors and capital market partners for their trust as we continue to build a resilient, tech-led agricultural ecosystem across Africa.”

n

He explained that the primary goal of the programme is to unlock working capital financing for smallholder farmers and enhance commodity trading across the country.

n

On the deployment of the initial N5.3bn tranche, Eje noted that priority is being given to cash crops and local commodities, including soybeans, sesame, sorghum, and maize, to meet both domestic and international demand, while leveraging select export opportunities.

n

Highlighting the company’s operational footprint, Eje disclosed that ThriveAgric works with approximately 1.2 million to 1.5 million smallholder farmers across 26 states in Nigeria. He added that while the organisation maintains a presence in several African countries, including Kenya, Uganda, and Rwanda, active operations funded by this commercial paper programme are strictly concentrated in Nigeria.

n

Proceeds from the issuance, Eje said, will also be deployed towards commodity aggregation, expanding its network of outgrower farmers, and scaling agricultural trading operations across its operational hubs.

n

Speaking on the structure of the instrument, the Managing Director of Anchoria Advisory Services Limited, the Lead Issuing House for the transaction, Damilola Titiladunayo, stated that the issuance includes tenors of 170 days and one year.

n

Designed for short-term working capital management, the commercial paper offers an efficient alternative to traditional bank loans, providing liquidity to support farmers and scale up operations during peak agricultural seasons.

n

Addressing sector risks, Titiladunayo expressed confidence in the company’s track record, noting that ThriveAgric navigated the COVID-19 pandemic while honouring its financial obligations.

n

Titiladunayo said, “The oversubscription of this Series 1 issuance is a strong signal of institutional confidence, both in ThriveAgric’s credit profile and in the structure we brought to market. As Lead Issuing House, our role was to package a business with real operational depth into a bankable, well-governed capital markets instrument, and the market’s response validates that work.

n

“This transaction also reflects a broader shift we’re seeing: investors are increasingly ready to back Nigeria’s real economy, including agriculture, through structured capital markets instruments, not just traditional lending. We look forward to supporting ThriveAgric through the remaining tranches of the N50bn programme.”

n

Over nearly a decade of operations, ThriveAgric has facilitated more than $150m in financing and significantly increased grain production to safeguard regional food supply chains.

n

The company acknowledged the role played by transaction advisors, lead and joint arrangers, legal counsels, rating agencies, and participating institutional investors, including pension fund administrators, asset managers, and commercial banks, in ensuring the execution of the debut raise.

n

n n