CIG Motors Launches N30bn Commercial Paper

CIG Motors Company Limited has opened a N30 billion Series 2 Commercial Paper issuance under its N100 billion Commercial Paper Programme as the company moves to strengthen its mobility operations and expansion drive across Nigeria.

The company disclosed the development in a statement released on Monday, noting that the offer is available to both institutional and retail investors, with the subscription window scheduled to close on Monday.

According to the company, the issuance is structured into two separate tranches with varying tenors and investment returns designed to attract different categories of investors.

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Tranche A carries a tenor of 272 days and offers investors a discount rate of 18.53 per cent alongside an implied yield of 21.50 per cent.

Tranche B, which has a tenor of 364 days, provides a discount rate of 19.53 per cent and an implied yield of 24.25 per cent.

CIG Motors stated that the minimum subscription threshold for investors has been fixed at N5 million, while additional subscriptions will be accepted in multiples of N1,000.

The company added that the funding date for the issuance has been scheduled for Tuesday.

According to the statement, proceeds generated from the commercial paper programme will be deployed towards inventory financing, operational expansion, working capital optimisation, and the development of broader mobility infrastructure projects across the country.

The Series 2 issuance follows the successful redemption of the company’s earlier N10.2 billion Series 1 Commercial Paper.

CIG Motors said the repayment of the earlier issuance demonstrates the company’s capacity to efficiently manage institutional capital while meeting debt obligations within agreed timelines.

The company’s latest financial disclosures showed revenue of N177.4 billion, earnings before interest, tax, depreciation and amortisation of N35.3 billion, and profit after tax of N17.3 billion.

Management said the figures underscore the company’s continued operational growth and reflect disciplined financial management across its expanding business structure.

United Capital Plc is acting as the Primary Issuing House for the transaction, while Cordros Capital Plc and Rand Merchant Bank have been appointed as Joint Issuing and Placing Agents.

The receiving banks for the commercial paper issuance are Wema Bank Plc, Access Bank Plc, and Providus Bank.

The programme also secured investment-grade ratings from two rating agencies.

DataPro Limited assigned the programme an A1 short-term rating and an A long-term rating, while Agusto & Co. awarded it an A2 short-term rating and a Bbb long-term rating.

Chairman of the company, Diana Chen, described the transaction as a reflection of investor confidence in the company’s long-term business direction and Nigeria’s economic outlook.

She stated that the issuance aligns with the company’s broader growth objectives and its commitment to deepening investment in Nigeria’s mobility ecosystem.

Group Chief Financial Officer, Ram Murugesan, said the company’s financial performance is the outcome of a deliberate strategy focused on platform expansion, disciplined leverage management, and operational efficiency.

He explained that the company remains focused on strengthening its financial position while scaling its business operations nationwide.

Also speaking on the transaction, Gbadebo Adenrele said the successful repayment of the company’s first commercial paper issuance has enhanced its reputation and credit standing within the Nigerian capital market.

According to him, the support from United Capital for the Series 2 issuance was driven by confidence in the company’s execution capacity, operational consistency, and financial discipline.

The company has continued to expand its footprint within Nigeria’s transport and mobility sector through strategic partnerships and investment initiatives.

Last year, Lagos State Governor Babajide Sanwo-Olu supervised the signing of a joint venture agreement involving IBILE Holdings Limited and CIG Motors Company Limited.

The partnership was aimed at acquiring 5,000 new vehicles for the Lagos Ride, also known as LAGRIDE, transportation scheme.

The project is expected to inject an estimated $260 million into the Lagos economy while supporting the state government’s plan to modernise urban transportation infrastructure.

The initiative is also targeted at replacing ageing vehicles operating within the state’s transport network as part of efforts to improve mobility services and build an integrated transportation system across Lagos.