Afrinvest Raises N15bn Working Capital Through Commercial Paper

Afrinvest (West Africa) Limited said, it is raising N15billion to support its short term funding requirements.

The company issued its series 3 & 4 Commercial Paper Issuance of N15 billion under its N25 billion CP and scheduled to close on May 6, 2025. The proceeds from the CP will be used to support the Issuer’s working capital requirements and general corporate purposes.

Afrinvest said, it has strengthened its securities business in Nigeria to offer more efficient and cost-effective services to retail, domestic and international institutional investors.

It pointed out that, “the Company is a well-diversified investment banking group and serves as a financial advisory hub. Hence, Afrinvest West Africa is able to offer its corporate, retail and institutional clients diversified products and services.

“The company has maintained a track record of consistent growth in its financial performance. This is underpinned by the efficiency and effectiveness of its processes and operations.”

It added that, “Afrinvest successfully raised its N12.2 billion Series 1 & 2 CP in January 2024 which achieved an impressive oversubscription rate of 144 per cent against the offered size of N5.0 billion. The Series 1 & 2 CPs were redeemed in June and October 2024. This underscores the Issuer’s creditworthiness in the debt capital market.”

The company’s performance in five years showed that Afrinvest West Africa has consistently grown its gross revenue over the past five years, recording a CAGR of 52 per cent in gross revenue, increasing from N2.3 billion in 2020 to N18.7 billion in 2024.

Gross revenue saw a remarkable 234 per cent increase, rising from N5.6 billion in 2023 to N18.7 billion in 2024, while, net revenue grew by 15 per cent, climbing from N5.5 billion in 2023 to N6.3 billion in 2024.

Performance was driven by strong year-on year revenue growth across the various subsidiaries within the Group. The strong revenue growth was also reflected in EBITDA, which surged by 1100 per cent, rising from N1.1 billion in 2023 to N13.2 billion in 2024.

Profit before tax declined from N1.0 billion in 2023 to N0.8 billion in 2024, primarily due to inflationary pressures and higher cost of funds stemming from the rising interest rate environment.

Afrinvest stated that to improve overall profitability, we intend to implement efficient cost management strategies.

Afrinvest is a capital market holding company with a focus on West Africa and active in six principal areas: investment banking, securities trading, asset management, trust services, investment research & consulting and financial technology.