Agric gets boost as Valency Agro Nigeria raises N5.12b

The agricultural sector has received a major boost with the raising of N5.12 billion by Valency Agro Nigeria Limited. The new capital is the first tranche under the company’s  N20 billion commercial paper programme.

The FMDQ Securities Exchange has approved the quotation of the N5.12 billion Series 1 Commercial Paper (CP) on its platform.

Executive Director, Valency Agro Nigeria Limited, Mr. Sumit Jain, said Valency Agro’s debut commercial paper issuance comes at a time the economy is bedeviled with soaring food prices, amid challenges of insecurity.

According to him, the agricultural sector and its attendant transformation agenda have never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

He explained that the proceeds from the issue would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

“We are thankful to our investors towards showing their faith in our agenda to grow the agriculture focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria. We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry,” Jain said.

Head, Capital Markets, FBNQuest Merchant Bank Limited, Mr. Oluseun Olatidoye said the success of the issue reiterated the bank’s effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

” We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success,” Olatidoye said.

FMDQ noted that the timely admission of the issuance and in general, securities on FMDQ Exchange, is a testament to the efficient processes and integrated systems through which FMDQ Holdings Plc, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited – has continued to create unique value for its diverse stakeholders during this peculiar time and beyond.

“In keeping with its commitment to the development of the market, FMDQ Exchange shall sustain its efforts in supporting issuers with tailored financing options to enable them achieve their strategic objectives, deepen and effectively position the debt capital market for growth, in support of the realisation of a globally competitive and vibrant economy,” FMDQ stated.