Golden Oil Funding SPV Seeks ₦5bn Asset-Backed Commercial Paper

Golden Oil Funding SPV Seeks ₦5bn Asset-Backed Commercial Paper

Golden oil funding Special Purpose Vehicle (SPV) plc is looking to raise N5 billion from series 1 asset back commercial paper, FSDH said in a sales pitch sent to clients.

“We are pleased to inform you of the upcoming launch of Golden Oil Funding SPV PLC up to ₦5 billion Series 1 Asset-Backed Commercial Paper Issuance under the company’s ₦15 billion Asset-Backed Commercial Paper Programme”, the investment firm said.

According to details, the proposed Issuance is for a 180-day tenor and the notes will be listed on the FMDQ Securities Exchange Limited.

The pitch explained that the Asset-Backed Note is sponsored by Golden Oil Industries Limited, a leading agri-food processor that engages in the extraction of palm kernel, ground nuts, and other agro-allied products and refining edible vegetable oils.

FSDH said since commencing operations 30 years ago, the Company has grown into a household name in Nigeria’s edible oil industry.

Its factory is strategically located in Onitsha, Anambra State, giving it proximity to the source of raw materials.  Golden Oil caters to leading FMCG brands such as Nestle Nigeria PLC, Unilever Nigeria PLC, Dangote Industries Limited, Rite Foods Limited, and UAC of Nigeria PLC and has also commenced the export of soybean meal to Europe.

According to FSDH, Golden Oil has had a long history of financial success. In financial year 2023 Golden Oil recorded revenues of ₦124.5 billion compared to ₦73 billion in the previous year. Naira Devaluation Deepens Economic Crisis in Nigeria

The company’s profit after tax grew by 29% year-on-year to ₦3.13 billion.

As part of its strategic funding initiative, the Issuer is seeking to raise debt capital through this Asset-Backed Commercial Paper Issuance to support the Sponsor’s short-term working capital requirements. The issue was awarded a rating of A1 from DataPro and S2sf from Agusto & Co.