Image Credit: FSDH

December 21, 2021/FSDH

The Series 1 (Tranche A and Tranche B) and Series 2 (Tranche A and Tranche B) Asset-Backed Commercial Paper (“ABCP”) Issuances ( the “ABCP Issuance”) of up to N25 Billion by AFIL SPV PLC (“AFIL” or the “Issuer”) under its N100 Billion ABCP Programme are scheduled to close on Tuesday, 21 December 2021.

The ABCP Notes are sponsored by AFEX Commodities Exchange Limited (“AFEX”) and the proceeds of the Issuance will be used by AFEX Investment Limited (“AFEX Investment”) to provide pre-qualified Agro-processors (the “Obligors”) with working capital support to enable them purchase commodities required for their production processes at an agreed price. The ABCP Notes will be backed by commodities deposited by the Obligors of the Notes with the Collateral Manager. 

AFEX facilitates the development of infrastructure and markets, and the deployment of capital for Africa’s commodities market. By leveraging Nigeria’s largest supply chain infrastructure, AFEX Investment actualizes its goals of supporting Nigeria’s food security vision and unlocking finance for the production, trade, processing and export of commodities in Africa. Since its establishment in 2014, AFEX has developed and deployed a viable commodities exchange model for the West African market, building a strong supply chain infrastructure to support the securitisation of agricultural products. AFEX operates over 97 warehouses in Nigeria’s key grain-producing areas and accounts for over 274,000 MT of total national storage capacity. AFEX has reached over 330,000 farmers and traded over 500,000 MT of commodities. Currently, AFEX Investment has raised about USD84.6million (N35 billion) till date. 

AFEX Investment’s products are aimed at catalysing finance for Agri-SMEs through the capital market in ways that ensure a fit in both timeliness of funding and structure of funds. To achieve this goal, AFEX Investment looks to introduce products that de-risk the sector, drive financial inclusion for rural communities, develop technology for data collection and market access, and enable the deployment of capital.

Please see a summary of the terms of the offer below:

Please see a summary of the terms of the offer below: