MKH Properties Limited has successfully closed Series 1 of its ₦30 billion Commercial Paper Programme, with subscriptions exceeding the ₦10 billion issue size. This marks a strong debut for the real estate developer in the domestic commercial paper market. The programme was established to provide MKH Properties with additional funding capacity for expansion and project delivery. The successful close is a significant milestone for the company.
The Series 1 commercial paper carried a 364-day tenor, a 25.0001% yield, and a 20.0110% discount rate, with a minimum subscription of ₦5 million. Pathway Advisors Limited acted as financial adviser and lead arranger for the programme. MKH Properties currently has residential and commercial projects across Lagos and Ibadan, including MKH City, Chelmsford City, and Dariann Court. The company's management had previously stated that the commercial paper programme aimed to expand the business and increase its capacity to undertake larger opportunities.
Dr. Muibi Kehinde Hammed, CEO of MKH Properties, expressed pride in the confidence investors have shown in the business. He stated that the successful outcome was significant for the company, representing the first completed transaction under a programme designed to support the next phase of expansion. The oversubscription of Series 1 demonstrates strong investor demand for MKH Properties' commercial paper.
The funds raised from Series 1 will support MKH Properties' expansion strategy and strengthen its ability to execute its growing portfolio of developments. The company has allocated more than 1,000 plots across 12 estates, with a portfolio exceeding $50 million. MKH Properties will continue to focus on project delivery, expansion, and creating value for its existing customers and investors.
Dr. Hammed emphasized that raising capital is only one part of the journey, and the company recognizes the responsibility that comes with the confidence shown by investors. He stated that MKH Properties intends to deploy the funds responsibly towards expansion and project execution, committed to ensuring that stakeholders see the results of that investment in the projects delivered.
The successful close of Series 1 gives MKH Properties an early indication of investor appetite as it progresses under its ₦30 billion programme. The company may return to the market for a larger amount in the future, according to Dr. Hammed. The next measure of the programme will be its ability to convert access to capital into completed projects, expanded operations, and sustained business growth.
MKH Properties' ₦30 billion Commercial Paper Programme is a significant development in the company's growth journey. The programme's success will be evaluated based on the company's ability to deliver projects and create value for its stakeholders. With a strong debut in the domestic commercial paper market, MKH Properties is poised for further growth and expansion in Nigeria's real estate sector.
Key points
- MKH Properties' Series 1 ₦10 billion commercial paper was oversubscribed, marking a strong debut in Nigeria's domestic commercial paper market.
- The funds raised will support MKH Properties' expansion strategy and project delivery.
- The successful close demonstrates strong investor demand for MKH Properties' commercial paper.
