By Adedapo Adesanya
Pathway Advisors Limited has announced the successful completion of a N10 billion Series 1 Commercial Paper issuance for MKH Properties Limited, with investors committing N11.07 billion to the offer.
The subscription represents 110.7 per cent of the N10 billion offer and was conducted under MKH Properties’ newly registered N30 billion Commercial Paper Programme.
The proceeds will be deployed towards the company’s working capital requirements and the completion of ongoing projects, supporting its expansion and continued project execution.
The strong investor participation, according to Pathway Advisors, reflects confidence in MKH Properties’ business fundamentals, growth prospects and strategic direction, as well as the attractiveness of the structured funding opportunity.
Pathway Advisors acted as Transaction Sponsor, Financial Adviser, Lead Issuing House and Arranger for the issuance.
Commenting on the transaction, the chief executive of Pathway Advisors, Mr Adekunle Alade, said the oversubscription demonstrated investors’ confidence in MKH Properties’ financial performance, corporate governance and creditworthiness.
“We are delighted to have acted as Transaction Sponsor, Financial Adviser, Lead Issuing House and Arranger to MKH Properties Limited on its debut N10 billion Commercial Paper Offer,” Mr Alade said.
He added that the strong demand also highlighted the growing appetite among institutional investors for quality investment opportunities supported by credible sponsors, sound fundamentals and transparent governance.
The chief executive of MKH Properties, Dr Muibi Kehinde Hammed, described the successful issuance as an important milestone for the company, saying the oversubscription represented a strong vote of confidence from investors.
“To have our first Series oversubscribed is a milestone we do not take lightly. We are grateful to every investor who participated in Series 1 and to everyone who has continued to invest in our existing projects,” Dr Hammed said.
He said the company would focus on deploying the funds responsibly towards expansion and project execution, adding that the objective was to ensure stakeholders saw tangible results from the investment.
The MKH chief also commended Pathway Advisors and other transaction parties for their roles in the successful completion of the offer.
The successful Series 1 issuance adds to Pathway Advisors’ capital market activities, with the firm providing investment banking, financial advisory and capital-raising services to corporate and institutional clients.
