Coleman Technical Industries Limited (CTIL) has announced the commencement of its Series 13 & 14 Commercial Paper issuance, part of its ₦30 billion Commercial Paper Programme.
The offer opened on March 18, 2024, and will close on March 22, 2024, with the funding date set for March 25, 2024. Investors can participate with a minimum subscription of ₦5 million and in multiples of ₦1,000 thereafter. The proceed from the offer is to support the company’s short-term working capital needs.
Established in 1975, CTIL is a Nigerian-owned private limited liability company renowned for manufacturing electrical wires and cables meeting international standards. Its market includes diverse sectors like power, oil and gas, real estate, and infrastructure. With a focus on local industry development, CTIL has become West Africa’s largest cables and wires producer over its 47 years of operation, backed by a dedicated management team boasting over 150 years of combined industry experience.
A significant milestone for CTIL was the commissioning of its $70 million fibre optic production line, the Arepo III Project, in 2022. This move positioned Nigeria as the fifth-largest producer of fibre-optic cables in Africa. With a production capacity of 162,000 metric tons annually, the Arepo III Project empowered Coleman to actively engage in the African Continental Free Trade Area (AfCFTA).
The company’s growth is strengthened by the secured $65 million annual contract for cable supplies to Nigeria LNG Limited (NLNG) under a $10 billion project lasting until 2027. This contract spans various cable types, including instrumentation cables, fibre-optic cables, low and heavy-duty electrical cables.
In a bid to minimize raw material supply and foreign exchange risks, CTIL has embarked on a backward integration project with the construction of a copper and aluminum smelter plant (Sagamu III Project).
Supported by strong financial metrics, CTIL’s FY 2023 management figures showcase impressive growth, with revenue increasing by 38% year-on-year to ₦54.15 billion, and profit before tax soaring by 103% year-on-year to ₦13.72 billion. Total assets also grew significantly by 80% year-on-year to ₦113.4 billion, reflecting the company’s robust performance and value creation for shareholders, with a return on equity of 50% for FY 2023.
The Series 13 & 14 Commercial Paper issuance by CTIL, aims to raise working capital to support its short-term operational needs. The terms of the Commercial Paper Issuance include the Series 13 offer which has a tenor of 182 days with a discount rate of 19.83% and an implied yield of 22.00% as well as the Series 14 offer which has a tenor of 270 days with a discount rate of 21.12% and an implied yield of 25.00%.
