SG Holdings Launches N75 Billion Commercial Paper Offer

SG Holdings has announced a N75 billion Commercial Paper (CP) issuance, part of a broader N100 billion Commercial Paper program. The issuance is scheduled to open on March 4, 2026, and close on March 11, 2026, to support the company's short-term working capital needs.

SG Holdings, an African multinational corporation headquartered in Nigeria, operates in various sectors of the Nigerian economy, including coastal vessel transport services. The CP offers a gross return of N660,498 for Series 3 and N932,837 for Series 4, with a base minimum investment of N5 million.

The Central Bank of Nigeria's guidelines indicate that the CP cannot be pre-liquidated. The company's financial performance shows that its operating profit covers interest expenses 5.6 times, despite a decrease from 7.31 times in 2024.

The total debt stands at N172 billion, with a debt-to-asset ratio of 35%. The issuance presents an attractive yield compared to government securities, although it introduces potential financial risks due to increased leverage and interest costs.