Coleman Opens N50bn Commercial Paper for Subscriptions
Coleman Technical Limited has opened up to N50 billion in commercial paper across two series for investors’ subscription, Apel Securities Limited said in its offer document.
Details from the offer document showed that series three with 180-day tenor attracts a 20.66% discount rate with an implied yield of 23%. The series four commercial paper attracts 20.92% as a discount rate with an implied yield of 24.75%.
The offer was opened on Wednesday in an effort to raise working capital by issuing series three and four commercial paper under its N100 billion program. The offer is expected to close at 2nd July 2025.
Coleman Technical Industries Limited is a 100% indigenously owned private limited liability company established on July 1, 1975, Apel Securities Limited wrote.
It primary focus is the manufacturing of electrical wires and cables that meet international standards for various industries such as power, oil and gas, real estate, and infrastructure.
“From inception, Coleman has been dedicated to developing local industries that create employment opportunities through the production of high-quality products.
“Over the course of its 47 years of operations, Coleman has become the largest producer of cables and wires in West Africa, solidifying its position as the industry leader in Nigeria. This achievement is attributed to its strong management team, which boasts over 150 years of combined industry experience.
“In 2022, the company commissioned its fibre optic production line, Arepo III Project, valued at US$70 million positioning Nigeria as the fifth-largest producer of fibre-optic cables in Africa which continues to support the drive of the digital economy in the West African region.
“With a production capacity of 162,000 metric tons per annum, this factory enables Coleman to actively participate in the African Continental Free Trade Area, leading to increased earnings, foreign exchange conservation, technology transfer, and the generation of direct and indirect employment opportunities for the local population.
“The resurgence in the oil and gas sector and the drive for local content has also become catalysts for Coleman’s growth.
“This is evident from the contract of US$65 million annually secured by Coleman for the supply of cables to the Nigeria LNG Limited (NLNG) US$10 billion project for five (5) years ending in 2027.
“The contract spans across multiple products, including instrumentation cables, fibre-optic cables, and low- and heavy-duty electrical cables.
“Subsequently, Coleman has embarked on a backward integration project with the construction of a copper and aluminum smelter plant (Sagamu III Project) to minimise its exposure to raw material supply and foreign exchange risks.
“Coleman holds a long-term issuer rating of “A-” by GCR Ratings and “A-” by Agusto & Co. These ratings are supported by the company’s well-established market niche, diverse product portfolio, stable earnings, and cash flows.
“The company, has sustained a consistent string of financial successes in their FY 2024 financial result, with revenue increasing by 154% year on year to ₦137.73 billion, net income growing by 111% to ₦31.08 billion, and total assets growing by 30% to ₦147.78 billion as of the end of FY 2024.
“The company significantly reduced its leverage position, with total borrowings declining by 49% from ₦44.93 billion in 2023 to ₦22.91 billion in 2024, further underscoring its strong financial standing”, Apel Securities Limited said in an emailed note. #Coleman Opens N50bn Commercial Paper for Subscriptions Nigeria Boosts Trade Surplus to N5.17trn as Imports Taper
