Daraju Industries Launches N10 Billion Commercial Paper Offer

Daraju Industries Limited has initiated an offer of up to N10 billion Series 4 Commercial Paper under its N50 billion Commercial Paper Programme. The Lagos-based manufacturer, operational since 1988 and known for MYMY toothpaste, soaps, and detergents, aims to raise funds for short-term working capital needs.

The offer, which opened on October 8, 2026, and closes on October 16, 2026, carries an implied annual yield of 23%, with repayment scheduled for October 18, 2027. Investors can expect to earn approximately N208,000 extra on a N5 million investment over 364 days, assuming full repayment.

This issuance follows a previous N5 billion Series 3 commercial paper in February 2026, which also had a 23% yield. While Daraju has a history of issuing commercial papers and substantial debt repayments, concerns remain regarding its ability to repay all matured series on time.

The company's financials indicate a stretched balance sheet, with borrowings of N60.22 billion at 13.7 times equity.