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Efficacy Development Plc, a Nigerian real estate and construction company, has raised N6.67 billion through its first commercial paper issuance to support ongoing projects and strengthen its operations.
The company disclosed this after completing its maiden Series 1 commercial paper issuance under its N50 billion commercial paper programme, with Pathway Advisors Limited acting as transaction sponsor, financial adviser, lead issuing house and lead arranger.
Efficacy said the funds would be used to meet working capital needs and accelerate the completion of some of its major projects, including Eighteen65 Ikeja (Block A), Eighteen65 Victoria Island and Peak Resorts and Golf Course.
The company explained that the funding would improve its operational capacity, sustain project delivery and support its expansion plans.
Speaking on the transaction, its Chief Executive Officer, Engr. Oyeleke Ajiboye, said the successful issuance reflected investors’ confidence in the company’s business operations and track record in the real estate and construction industry.
“The successful completion of our maiden Commercial Paper issuance is a strong endorsement of Efficacy’s business fundamentals, diversified operations and long-standing reputation in the real estate and construction industry. We are particularly encouraged by the confidence demonstrated by asset managers, insurance companies and other institutional investors,” he said.
Ajiboye said the funds would strengthen the company’s working capital, improve efficiency and speed up the delivery of ongoing projects.
He also commended Pathway Advisors for its professional support in structuring and completing the transaction.
The Founder and Chief Executive Officer of Pathway Advisors Limited, Mr Adekunle Alade, described the issuance as an important milestone for Efficacy, noting that it demonstrated the company’s ability to attract funding from institutional investors.
“Efficacy’s maiden entry into the debt capital market is an important test of its credibility, financial fundamentals and ability to attract institutional capital. Efficacy Development Plc has successfully taken this important step, and the completion of its ₦6.67 billion debut Commercial Paper issuance reflects the confidence investors have placed in the Company, its management and its growth prospects,” he said.
Alade said Pathway Advisors was committed to helping credible Nigerian businesses access funding and strengthen their financial positions.
Efficacy Development has more than 18 years of experience in real estate development, building construction, civil engineering and infrastructure projects.
The company said it had delivered more than 26 residential estate projects, sold 2,042 houses and 4,112 plots of land to over 6,200 customers, with a land bank of about 248 hectares across Abuja, Lagos, Ogun, Rivers and Osun states.
It is rated A3 short-term and BBB- long-term by Global Credit Rating Company, and A2 short-term and A- long-term by DataPro Limited.
