TGI Launches N25bn Commercial Papers To Strengthen Food Security

TGI Foods SPV , a special purpose vehicle formed by Tropical General Investments (TGI) Group, has launched a N25 billion Series 1 and 2 Commercial Papers (CP) under its N100 billion, three-year commercial paper issuance programme.

The funds raised will support the working capital needs of key TGI Group companies—West African Soy Industries Limited (WASIL) and WACOT Rice Limited—both of which play significant roles in Nigeria’s food manufacturing and processing sectors.

In a statement, the company’s Vice Chairman of TGI Group, Farouk Gumel, emphasised that this issuance is part of the group’s commitment to investing in Nigeria’s food sector and supporting the country’s goal of self-sufficiency in staple foods.

He highlighted that the Commercial Paper programme offers investors a chance to contribute to one of Nigeria’s most vital economic sectors, creating jobs and positively impacting rural communities while providing competitive returns to urban investors.

According to him, the funds from this issuance will be used to purchase 190,000 MT of rice paddy and 160,000 MT of soybeans from Nigerian farmers during the 2024 wet harvest season.

TGI Group , a major player in Africa’s agricultural commodities and food value chain, generates over N2.25 trillion in annual revenue from its West African operations.

In Nigeria, the group has established leadership in various value chains, including rice, seasoning cubes, cotton, sesame, shea, cocoa, cashew processing, and edible oils refining.

This procurement is expected to benefit thousands of farmers across the country and in future years, the funds will also support the purchase of grains from Internally Displaced Outgrower Farmers involved in the TGI Group and United Nations Refugee Agency (UNHCR) farmer programme.

Financial advisors and dealers involved in the issuance, including Chapel Hill Denham Advisory Limited, Afrinvest Capital Limited, Lighthouse Capital Limited, and PAC Capital Limited.