June 1, 2023/FSDH Capital

FSDH Capital Limited (the “Arranger”) is pleased to announce the upcoming launch of the Coleman Technical Industries Limited (“CTIL” or “Coleman” or the “Company”) Series 9 & 10 Commercial Paper Issuance under its ₦30 billion Commercial Paper Programme (the “Offer”).

Coleman Technical Industries Limited is a 100% Indigenously owned private limited liability company established on July 1, 1975. The company’s primary focus is the manufacturing of electrical wires and cables that meet international standards for various industries such as power, oil and gas, real estate, and infrastructure. From its inception, Coleman has been dedicated to developing local industries that would in turn create employment opportunities through the production of high-quality products. Over the course of its 47 years of operations, Coleman has become the largest producer of cables and wires in West Africa, solidifying its position as the industry leader in Nigeria. This achievement is attributed to its strong management team, which boasts over 150 years of combined industry experience.

With the completion of its state-of-the-art fibre-optic cable factory, which required an investment of US$70 million, Coleman has expanded its operations to include the production of fibre-optic cables. This factory, the first of its kind in West Africa and the fifth on the entire continent, is expected to drive the digital economy of Nigeria and the West African region. It positions Nigeria as the fifth-largest producer of fibre-optic cables in Africa. With an impressive production capacity of 162,000 metric tons per annum, this factory enables Coleman to actively participate in the African Continental Free Trade Area (“AfCFTA”), leading to increased earnings, foreign exchange conservation, technology transfer, and the generation of direct and indirect employment opportunities for the local population.

The resurgence in the oil and gas sector and the drive for local content has also become a catalyst for Coleman’s growth. This is evident from the contract of US$65million annually secured by Coleman for the supply of cables to the Nigeria LNG Limited (NLNG) US$10billion project for the next Five (5) years. The contract spans across multiple products including instrumentation cables, fibre optic cables, low and heavy-duty electrical cables.

Coleman holds a long-term issuer rating of “BBB-” by GCR Ratings and “BBB-” by Agusto & Co. These ratings are supported by the company’s well-established market niche, diverse product portfolio, stable earnings, and cash flows. CTIL,  has sustained a consistent string of financial successes, with gross earnings increasing by 41% year-on-year to ₦7.30 billion, profit before tax growing by 54% year-on-year to ₦5.65 billion, and total assets growing by 47% year-on-year to ₦63.07 billion as of the end of FY 2022. The company’s return on average equity for FY 2022 reached an impressive 29%, highlighting its strong value creation for shareholders. As part of its strategic funding initiative, Coleman is seeking to raise debt capital through this Commercial Paper Issuance to support the company’s short-term working capital requirements.

Please see indicative terms of the Commercial Paper Issuance below:

For more information on the Offer, please refer to the offer documents listed below, which can be accessed through this  Link

• Programme Memorandum
• CTIL Audited Financial Statements (FY 2018 – FY 2022)
• Q1 2023 Management Accounts
• Issuer’s rating reports by Agusto and GCR
• Valid PenCom Compliance Certificate