…as offer closes September 4, 2024
TGI Foods SPV Plc is currently inviting shrewd investors in the country for its ₦25 Billion Series 1 and 2 Commercial Papers Issuance under its ₦100 Billion Commercial Paper Programme. The offer opened on August 22, 2024 and will close on Wednesday, September 4, 2024, which is the same as the allocation date, according to the notes Afrinvest sent to investors last weekend.
TGI Foods SPV Plc is a special purpose vehicle established by the Tropical General Investments (TGI Group) to facilitate capital raising for its food division—TGI Foods—through a ₦100 billion Commercial Paper Programme supported by co-promoters, West African Soy Industries Limited (WASIL) and WACOT Rice Limited (WACOT Rice).
TGI Group has successfully expanded its global footprint, using Africa as its base, and now generates annual revenues exceeding ₦2.25 trillion from its West African Investments. TGI Group’s Global Food Security basket contains six critical staples: Grains (Rice), Sugar, Wheat, Salt (Seasoning Cubes), Dairy, and Edible Oils.
“We are committed to enhancing global food security through sustainable agricultural practices, innovative food production, and efficient distribution networks. We strive to empower communities, create economic opportunities, and deliver high-quality, nutritious food products that nourish and enrich lives worldwide,” TGI Group said.
It added that the organisation possesses a deep network of origination, distribution and supply chain hubs within its operating countries. Through this subsidiary, TGI can distribute its product directly to over 300,000 retail outlets across Nigeria which represents 25 percent of the CPG outlet universe.
Through its subsidiaries, TGI Group has established a significant presence in four of these staples—Rice through WACOT Rice, Seasoning Cubes via WACUB (West African Cubes), Dairy through its Dubai-based investment in Nutridor, and Edible Oils through WASIL—covering 67 percent of the food security basket. This Commercial Paper Issuance offers investors a unique opportunity to engage with 34 percent of the Nigerian food basket through TGI Foods SPV Plc.
West African Soy Industries Limited is one of the largest processors of soyabeans and various oilseeds and nuts in Nigeria. From its state-of-the-art 225,000 MT oilseed complex and a 250,000 MT refinery, WASIL produces edible oils under the popular Golden Terra Soya Oil brand and high protein soyabean meal that has strong demand in the domestic and international animal feed market. The company prints strong topline growth (64% 5-year CAGR) and consistent profitability.
WACOT Rice Limited is one of the leading rice millers in Africa with an annual milling capacity of 120,000 MT of mill ready paddy. WACOT Rice’s premium parboiled rice marketed under the well-known brands – Big Bull Rice and Patriot Rice – is renowned for its ability to compete with imported varieties on the basis of quality and pricing. WACOT Rice has a strong out-grower farming programme across Nigeria empowering over 5,000 farmers. The company also provides technical support to the Lagos State Government on its Imota Rice Mill and has just concluded a strategic co- investment partnership with USAID to elevate rice production in Nigeria and bolster food security.
“Nigeria’s rice production is booming, reaching 8.4 million metric tons annually, making it Africa’s top producer. While self-sufficiency is the goal, imports still meet some consumer preferences. Government initiatives like the Anchor Borrowers’ Programme and the National Rice Development Strategy aim to boost production and reduce imports. Challenges remain, but with improved practices and investment, Nigeria has immense potential to become a major rice exporter,” TGI Group said.
As of December 31, 2023, the total revenue of TGI Foods stood at ₦205.42 billion, a Profit Before Tax of ₦13.47 billion, and a Profit After Tax of ₦11.82 billion. The company had a total asset base of ₦302.59 billion and a shareholders’ fund of ₦125.36 billion.
The proceeds from the Commercial Paper Programme will be used to fund the working capital requirements of the issuer’s co-promoters, WASIL and WACOT Rice, together formed the TGI Foods.
