VFD Group Redeems N12.83bn Commercial Paper

VFD Group Plc has redeemed its N12.83bn Series 5 Commercial Paper (CP).

The CP, issued under the Group’s N20bn Commercial Paper Programme, was settled in full on its maturity date of November 14, 2025.

According to the group, the timely redemption, executed amid persistent domestic market volatility, reflects VFD Group’s strong balance sheet management and commitment to meeting all financial obligations as and when due.

The company noted that the settlement is part of a deliberate deleveraging strategy aimed at improving its funding structure and reducing short-term debt exposure.

The Group noted that investors have remained confident in its financial fundamentals, a sentiment mirrored in the positive traction of its ongoing N50bn Rights Issue, five billion ordinary shares offered at N10 per share, which is scheduled to close on November 24, 2025.

It stated that since its debut CP issuance in July 2023, VFD Group has raised and successfully redeemed a cumulative N33.4bn through five commercial paper cycles, demonstrating its dependability as a prime issuer in the Nigerian debt market.

“The Series 5 redemption solidifies the Group’s record of five consecutive, flawless maturity settlements since the programme’s launch in 2022,” it said.

Executive Director, Finance & Investor Relations, Mr. Folajimi Adeleye, said the prompt redemption underscored VFD Group’s robust liquidity and unwavering commitment to stakeholder confidence.

He explained that retiring the N12.83bn obligation enhances the Group’s capital efficiency and differentiates VFD from prevailing fixed-income market trends.

Adeleye added that the performance also strengthens investor and shareholder assurance, particularly in light of the ongoing Rights Issue, and reinforces the organisation’s resilience in the face of current market pressures.

With the redemption completed, he said it is better positioned to leverage new capital inflows to accelerate strategic initiatives, including scaling the Bvndle Loyalty Platform and executing other growth-driven projects across its investment ecosystem.