By Merit Ibe
Coleman Technical Industries Limited said it has made full repayment of its Series 1 Commercial Paper (CP) Issuance to investors. The company promptly fulfilled its obligation on the Series 1 CP issued for 180 days, which matured on January 10, 2022 and informed FMDQ Securities Exchange Plc of the payment in line with best practice.
A leading manufacturer of wires and cables in Sub-Saharan Africa, Coleman, accessed the CP market for the first time last year, in a bid to increasingly diversify its funding structure. The company said with a successful outing, the Series 1 CP issuance attracted high net worth individuals, asset managers, insurance companies and Pension Fund administrators.
Applauding the investing community for their confidence in its instrument, the company said: “It remains optimistic that the successful payment of investors will avail us the global visibility needed to achieve our long-term capital plans.
The Securities and Exchange Commission (SEC) had earlier approved Coleman Wires and Cables’ N50 billion bond for operational expansion. The company considered the bond as a better funding option as it will help to cut costs on some projects which include the production of marine and transmission cables.
“The proceeds from the bond will be deployed to fund certain projects in the manufacturing, oil and gas, and telecommunications sectors of the economy.
“We want to discourage importation of cables into our country and might fill 100 percent capacity in the country,” the company said .