VFD Group Plc has demonstrated remarkable financial strength by fully redeeming its N12.83 billion Series 5 Commercial Paper on the scheduled maturity date of November 14, 2025.
Successful Commercial Paper Redemption
The Principal Investment firm executed the complete repayment under its N20 billion Commercial Paper Programme, highlighting the company's robust liquidity position and commitment to maintaining financial discipline. This strategic move comes despite ongoing volatility in Nigeria's domestic fixed-income market, setting VFD Group apart as a reliable player in the financial sector.
The timely settlement of the Series 5 issuance represents a significant deleveraging achievement for the company. It showcases VFD Group's capacity to generate sufficient internal liquidity to meet financial obligations promptly, thereby enhancing its creditworthiness and reinforcing investor confidence.
Rights Issue and Investor Confidence
This redemption comes at a crucial time when VFD Group's N50 billion Rights Issue remains open to investors. The ongoing offer, which consists of five billion ordinary shares priced at N10 each, has been attracting substantial investor interest ahead of its November 24, 2025 closing date.
According to Folajimi Adeleye, Executive Director of Finance & Investor Relations, the flawless redemption of the Series 5 paper provides strong evidence of VFD Group's liquidity strength and unwavering financial discipline. He emphasized that this settlement significantly reduces the company's short-term debt exposure while improving its funding structure.
Track Record of Excellence
Since entering the commercial paper market in July 2023, VFD Group has established an impressive track record, having raised and redeemed a cumulative N33.4 billion across multiple issuances. The latest redemption marks the company's fifth consecutive timely maturity settlement since launching its CP Programme in 2022.
Adeleye noted that the Group's consistent performance has distinguished it within Nigeria's fixed-income landscape, reinforcing its reputation as a premium issuer capable of navigating challenging market conditions. Many other issuers currently face pressure from rising yields and tightening liquidity, making VFD Group's achievement particularly noteworthy.
The redemption also serves as reassurance to existing shareholders and prospective participants in the Rights Issue, demonstrating the Group's commitment to maintaining an efficient capital structure and sustaining resilience despite market uncertainties.
Strategic Growth Initiatives
Management indicates that the redemption supports broader strategic objectives of preparing the balance sheet for long-term growth and operational expansion. With improved liquidity and new capital expected from the Rights Issue, VFD Group plans to accelerate several strategic initiatives.
These include scaling the Bvndle Loyalty Platform and other mission-critical projects that will further strengthen the company's position as a leading player in Africa's investment and financial services ecosystem.
