Golden Oil Funding Announces Up to ₦5Bn Series 2 Asset-Backed Commercial Paper Issuance

Image Credit: FSDH Capital

March 1, 2024/FSDH Research

FSDH Capital has announced the launch of Golden Oil Funding SPV PLC (“the Issuer”) up to ₦5 billion Series 2 Asset-Backed Commercial Paper Issuance (“the Transaction”) under the company’s ₦15 billion Asset-Backed Commercial Paper Programme. The proposed Issuance is for a 93-day tenor and the notes will be listed on the FMDQ Securities Exchange Limited.

The Asset-Backed Note is sponsored by Golden Oil Industries Limited (“Golden Oil” or “the Company”). Golden Oil is a leading agri-food processor that engages in the extraction of palm kernel, ground nuts, and other agro-allied products and refining edible vegetable oils. Since commencing operations 30 years ago, the Company has grown into a household name in Nigeria’s edible oil industry. Its factory is strategically located in Onitsha, Anambra State, giving it proximity to the source of raw materials. Today, Golden Oil caters to leading FMCG brands such as Nestle Nigeria PLC, Unilever Nigeria PLC, Dangote Industries Limited, Rite Foods Limited, and UAC of Nigeria PLC and has also commenced the export of soybean meal to Europe.

Golden Oil has had a long history of financial success. In Q3 2024 Golden Oil recorded revenues of 122.6 billion compared to 84.8 billion in the previous period (Q3 2023), whilst profit after tax grew by 424% year-on-year to 9.3 billion. As part of its strategic funding initiative, the Issuer is seeking to raise debt capital through this Asset-Backed Commercial Paper Issuance to support the Sponsor’s short-term working capital requirements. The issue was awarded a rating of A1 from DataPro and S2sf from Agusto & Co.

Please see below the indicative terms of the offer:

*Kindly note that the offer is restricted to only QIIs and the yield payable on the Note is subject to Withholding Tax (WHT) except for exempted investors (E.g., PFAs).

Kindly see the  Link to the following documents for your information and use:

  1. Programme Memorandum
  2. Series 2 Pricing Supplement
  3. Structured Finance Rating Report – Agusto & Co
  4. Commercial Paper Rating Report  – Data Pro
  5. Investor Presentation
  6. Financial Statements (2018-Q3 2023)
  7. Valid PENCOM Certificate (2024)

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