VFD Group Issues N15 Billion Series 1 Commercial Paper

VFD Group PLC has returned to Nigeria’s short-term debt market with the launch of a N15 billion Series 1 Commercial Paper (Tranches A and B) under its broader N50 billion Commercial Paper Issuance Programme. The initiative builds on the company’s history of multiple successful commercial paper issuances.

The offer commenced on February 16, 2026, and will close on February 19, 2026, with settlement scheduled for February 20, 2026. Tranche A, with a 270-day maturity, carries a discount rate of 18.55% and an implied annual yield of 21.5%, maturing on November 17, 2026. Tranche B, spanning 364 days, has a discount rate of 19.04% and an implied yield of 23.5%, maturing on February 19, 2027. The minimum investment is N5 million, with additional increments of N1 million. Taxes apply as mandated, and repayment will be funded from VFD Group’s operating cash flows.

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Founded in 2009 and listed on the Nigerian Exchange in October 2023, VFD Group is an investment firm providing alternative funding and investment channels for individuals and businesses in Nigeria and Ghana. The firm operates across Sub-Saharan Africa, the UK, and the US, maintaining a diversified portfolio through strategic partnerships.

In 2025, VFD Group recorded a profit after tax of N9.68 billion, an 11.38% increase from N8.69 billion in 2024. Operating cash flow surged to N85.2 billion, up 336.9% year-on-year. While the company’s interest coverage ratio stands at 1.3 times, indicating a relatively narrow buffer against rising costs or weaker earnings, total borrowings declined to N112.33 billion from N121.43 billion in 2024. VFD Group maintains an A+ long-term and A1 short-term rating from DataPro, reflecting strong credit quality and low default risk.

The commercial paper offers attractive yields for investors seeking high returns in the short-term debt market, though attention should be paid to cash flow sustainability and reliance on market-based financing.