Julius Berger, a Nigerian construction firm linked to Mike Adenuga, a leading telecom mogul with oil and gas interests, has established a N30-billion ($69.6 million) Commercial Paper Issuance Program approved by the FMDQ Securities Exchange Limited for Sept. 21.
In accordance with the terms of the $69.6-million short-term debt facility, Julius Berger will issue commercial papers denominated in Nigerian Naira in separate series or tranches from time to time.
The planned debt facility issuance is subject to compliance with all applicable laws and the terms and conditions contained in the CP Program Memorandum and the applicable pricing supplement.
The debt facility, according to Julius Berger, will strengthen the company’s long-term strategy to strengthen its competitive advantage in the construction sector, and each issuance under the CP Program will support the company’s short-term working capital and funding requirements.
The company stated that the repayment of all obligations under each series or tranche of notes issued under the CP Program will be funded by the company’s cash flows or other means specified in the applicable pricing supplement.
Julius Berger is a leading construction company that has contributed significantly to the development of industrial and civil infrastructure in Nigeria.
In order to diversify its revenue and earnings base while also ensuring the group’s viability as a going concern, the company plans to commission its cashew-processing plant this month, marking its entry into the agro-allied industry.
Adenuga, the founder of Nigeria’s third-largest telecom services provider, Globacom Limited, owns 25.1 percent of Julius Berger through Goldstones Estates Limited, or 401,834,494 ordinary shares.
His daughter, Belinda Ajoke Disu, serves on the company’s board of directors.
According to figures from the group’s recently published financial statements, profits in the first half of 2022 increased to N6 billion ($13.9 million) from N4.76 billion ($11.1 million) in the first half of 2021.
The increase in earnings was driven by a strong recovery in its operating environment, which resulted in a significant improvement in the performance of all of its segments, with revenue increasing by 49 percent to N218 billion ($505.4 million) during the period under review.
