TGI Foods SPV Plc launches up to N25 Billion series 1 & series 2 commercial papers under N100 Billion programme 

TGI Foods SPV Plc, a special purpose vehicle established by the Tropical General Investments (TGI) Group, is pleased to announce the launch of its ₦25 billion Series 1 & Series 2 Commercial Papers (“CP”) Issuance under its 3-year ₦100 billion Commercial Paper Issuance Programme.

The Commercial Paper Programme will support the working capital requirements of TGI Foods’ co-promoters, West African Soy Industries Limited (“WASIL”) and WACOT Rice Limited, both of which are integral parts of TGI Group’s expansive food manufacturing and processing footprints in Nigeria

TGI Group is a key player in Africa’s agricultural commodities and food value chain with its revenues exceeding N2.25 trillion Naira per annum from its West African operations alone.

In Nigeria, the Group’s Investments, through its subsidiaries, command a leading position in the following value chains—rice through 2 factories, WACOT Rice Ltd (120,000MT rice mill) and the recently completed WACOT Rice Argungu Ltd (130,000MT rice mill), seasoning cubes via WACUB (West African Cubes), Cotton, Sesame, Shea, Cocoa and Cashew processing and trading through WACOT Ltd and edible oils refining through WASIL, among others.

Outside Nigeria, the Group has invested in Dairy processing in the United Arab Emirates (Nutridor), Cashew and edible oils processing in Benin Republic (Fludor Benin), and the Cocoa value chain in Ghana (Fludor Ghana). Furthermore, the Group has commodity trading operations in the UAE, India and Vietnam.

Vice Chairman of TGI Group, Farouk Gumel noted that, “this issuance demonstrates TGI Foods’ continued determination to invest in Nigeria’s food sector and support our national ambition of self-sufficiency in staple food items.

He further reiterated the Group’s commitment to strategic alliances to further champion Nigeria’s food security cause. “This Commercial Paper programme marks a significant milestone in our ongoing efforts to secure flexible financing that supports our operations and growth initiatives. This programme offers investors an excellent opportunity to participate in the most inclusive and impactful sector of the Nigerian economy. The jobs we create in the agriculture and food value chain are second to none. Such an investment will positively impact many rural communities while delivering competitive returns to urban investors”, Gumel said.

The funds raised from this series will be used to procure 190,000 MT of rice paddy and 160,000MT of Soybeans from farmers during the 2024 wet harvest season. It is estimated that this procurement will support thousands of farmers across Nigeria. In subsequent years, funds from this Programme will also be used to procure grains from Internally Displaced Outgrower Farmers participating in the joint TGI Group/United Nations Refugee Agency (UNHCR) Farmer program

Commenting on the issuance, financial advisors  and dealers to TGI Group, expressed their confidence in the SPV and its promoters. “We are therefore happy to work with TGI on this, as we continue to be enthused by the huge potential this holds for all parties” said Lanre Buluro, Managing Director, Chapel Hill Denham Advisory Limited.

The Managing Director at Afrinvest Capital Limited also said, “By supporting TGI Group on this programme, investors are voting for sustainable national food security while deepening the capital market.”

Ugbede Nelson Attah, Group Managing Director/CEO of Lighthouse Capital Limited,  added ” The strategic vision and execution demonstrated by TGI Group through this issuance exemplify the type of forward-thinking leadership needed to transform Nigeria’s agricultural landscape,”.

The Managing Director/CEO of PAC Capital Limited,  Humphrey Oriakhi stated, “’’this initiative presents a unique opportunity for investors to align with a purpose-driven venture that promises both substantial financial returns and positive social impact.”

WASIL is one of Nigeria’s largest processors of soybeans and various oilseeds and nuts. The company operates a state-of-the-art 225,000 MT oilseed complex and a 270,000 MT refinery, producing the popular Golden Terra Soya Oil and high-protein soybean meal, which is in strong demand both domestically and internationally. WASIL has demonstrated robust growth, with a 64% 5-year Compound Annual Growth Rate (CAGR) and consistent profitability. The company procures its inputs, such as soybeans, from Katsina, Oyo, Kwara, and Benue States.

WACOT Rice Limited is one of two rice mills owned and operated by TGI Group. The company is a leading rice miller in Africa, boasting an annual milling capacity of 120,000 MT of mill-ready paddy. The company’s premium parboiled rice, marketed under the well-known Big Bull Rice and Patriot Rice brands, competes favourably with imported varieties in terms of quality and pricing. WACOT Rice empowers over 5,000 farmers through its out-grower farming program across Nigeria and has worked with partners such as the USAID and other development partners to enhance rice production and bolster food security in the country. The company procures its paddy across all states in the Northern part of Nigeria