VFD Group Launches N15 Billion Commercial Paper Issuance

VFD Group Plc has initiated a N15 billion Series 1 Commercial Paper issuance, which is part of a broader N50 billion commercial paper issuance program. This issuance marks the company's return to the Nigerian short-term debt market and is scheduled to open on February 16, 2026, and close on February 19, 2026.

Established in 2009 and listed on the NGX on October 6, 2023, VFD Group is a proprietary investment company that provides alternative funding channels for individuals and small businesses in Nigeria and Ghana. The commercial paper offers an annual yield of 21.50% for a 270-day tranche and 23.50% for a 364-day tranche, representing a competitive risk premium compared to similar short-term government securities.

The company expects to use the funds raised to support its operational cash flow, which is projected to reach N85.2 billion in 2025. Despite a decline in total borrowings to N112.33 billion in 2025, VFD Group remains reliant on market-based funding and has a thin interest coverage ratio of 1.3 times.