Efficacy Development Plc, an indigenous real estate development and construction company, has successfully raised ₦6.67 billion through its maiden Series 1 Commercial Paper (CP) issuance under a ₦50 billion Commercial Paper Programme.
The transaction marks the company’s entry into Nigeria’s debt capital market and provides an additional source of short-term financing to support its working capital requirements, ongoing projects and expansion plans.
Pathway Advisors Limited acted as Transaction Sponsor, Financial Adviser, Lead Issuing House and Lead Arranger, providing transaction structuring, financial advisory and execution support.
According to the company, proceeds from the issuance will be deployed towards working capital requirements and the completion of key projects, including Eighteen65 Ikeja (Block A), Eighteen65 Victoria Island, and Peak Resorts & Golf Course.
The funding is expected to strengthen operational efficiency, sustain project execution and enhance the company’s capacity to pursue its growth and expansion objectives.
Commenting on the successful issuance, Chief Executive Officer of Efficacy Development Plc, Engr. Oyeleke Ajiboye, said the transaction demonstrated investor confidence in the company’s business fundamentals, diversified operations and track record in the real estate and construction industry.
He noted that the company was encouraged by the participation of asset managers, insurance companies and other institutional investors in the issuance.
” 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,” Ajiboye said.
He added that the funding would provide additional financial capacity to meet working capital needs, improve operational efficiency and accelerate the delivery of ongoing projects.
Ajiboye also commended Pathway Advisors for its professionalism, strategic guidance and commitment throughout the transaction.
In his remarks, Founder and Chief Executive Officer of Pathway Advisors Limited, Mr Adekunle Alade, described the successful issuance as a significant milestone for Efficacy Development and a demonstration of the firm’s capacity to structure and execute capital market transactions for Nigerian businesses.
According to him, the successful ₦6.67 billion issuance reflects institutional investors’ confidence in the company’s management, financial fundamentals and growth prospects.
“At Pathway Advisors, we are particularly proud to have partnered with Efficacy in achieving this milestone. Our role goes beyond facilitating access to capital; we are committed to providing strategic financial advisory solutions that enable businesses to unlock funding opportunities, strengthen their financial positions and achieve their long-term objectives,” Alade said.
He expressed the firm’s readiness to deepen its partnership with Efficacy and support its future capital-raising initiatives as the company expands its presence in Nigeria’s real estate and infrastructure sectors.
Efficacy Development Plc has over 18 years of experience in real estate development, building construction, civil engineering and infrastructure development.
The company operates across residential and commercial real estate, engineering and design, specialist heavy works, and project and programme management.
Its portfolio also includes architectural and interior design, building services, pile foundation, dredging, reclamation, civil and structural works, as well as sewage and water treatment.
Efficacy said it has delivered more than 26 residential estate projects, sold 2,042 houses and 4,112 plots of land to over 6,200 customers, and built a land bank of approximately 248 hectares across Abuja, Lagos, Ogun, Rivers and Osun states.
The company also has experience in executing large-scale infrastructure and industrial projects.
Its credit ratings include A3 (Short Term) and BBB- (Long Term) from Global Credit Rating Company (GCR), as well as A2 (Short Term) and A- (Long Term) from DataPro Limited.
The successful commercial paper issuance provides Efficacy with access to Nigeria’s institutional debt market as it seeks to strengthen its financing capacity and sustain its project delivery pipeline.
Comment here