Johnvents Industries Plans N80 Billion Cocoa Purchase Funding

Johnvents Industries Limited is targeting to raise up to N80 billion through a commercial paper issuance to finance working capital requirements, particularly for bulk cocoa purchases as the main harvest season commences. This initiative was detailed in an email from CardinalStone Partners Limited, the financial services firm advising on the transaction.

Johnvents, incorporated in 2016, operates in the processing, manufacturing, distribution, and export of agricultural commodities, with cocoa being a significant focus. The N80 billion will be issued as Series 1 Tranche A and B under its N250 billion Commercial Paper Issuance Programme, aimed at bolstering operations during the cocoa harvest.

Johnvents has a combined cocoa processing capacity of approximately 48,000 metric tonnes annually at its facilities in Akure and Ile-Oluji. The issuance is part of a series of debt-market transactions to support the company's growth, with previous maturities ranging from 181 to 364 days and yields between 22% and 24.5% per annum.