VFD Group PLC has returned to the Nigerian debt market with the launch of its N15 billion Series 1 Commercial Paper (CP).
This issuance, comprising Tranche A and Tranche B, is part of the company’s broader N50 billion Commercial Paper Issuance Programme.
The offer officially opened on Monday, February 16, 2026, and is set to close today, Thursday, February 19, 2026, with settlement scheduled for the following day.
The investment offer is structured to appeal to yield-seeking investors, with Tranche A (270 days) offering an implied yield of 21.50% and Tranche B (364 days) offering 23.50%.
These rates provide a competitive risk premium over short-term government securities. The minimum subscription is set at N5 million, targeting institutional and high-net-worth investors.
Repayment for the paper will be funded through the group’s internal cash flows, which saw a significant 336.9% year-on-year increase in 2025, reaching N85.2 billion.
While the group’s 2025 profit after tax rose to N9.68 billion, analysts point to a thin interest coverage ratio of 1.3 times as a factor for investors to monitor.
This suggests that while the company is currently meeting its obligations, it has limited headroom if funding costs rise further.
Despite this, VFD Group maintains an investment-grade rating of A+ (long-term) and A1 (short-term) from DataPro, signaling strong credit quality and a stable outlook for its ongoing deleveraging efforts.