MKH Properties Limited has successfully completed the first series of its ₦30 billion Commercial Paper Programme, with investors subscribing beyond the company’s initial ₦10 billion target.
The successful transaction marks MKH Properties’ entry into Nigeria’s commercial paper market and provides the real estate developer with additional funding to support expansion and project delivery.
The Series 1 commercial paper has a 364-day tenor, a 25.0001 per cent yield and a 20.0110 per cent discount rate. The minimum subscription was set at ₦5 million, while Pathway Advisors Limited served as financial adviser and lead arranger for the programme.
Commercial paper allows companies to raise short-term funds from investors outside traditional bank lending. For MKH Properties, the programme was established to increase its financial capacity as it expands its residential and commercial property portfolio.
The company said the funds raised would be used to support its expansion plans and strengthen its ability to execute ongoing and future developments.
Commenting on the transaction, MKH Properties Chief Executive Officer, Dr Muibi Kehinde Hammed, described the oversubscription as an important milestone for the company. He said the level of investor demand demonstrated confidence in the company’s plans and also placed greater responsibility on management to deliver on its commitments.
MKH Properties currently has developments across Lagos and Ibadan, including MKH City, Chelmsford City, Dariann Court, The Legacy, The Wealthy Place and MKH Shopping Mall. The company said the new capital would help it expand its operations and accelerate project execution.
The successful Series 1 comes shortly after MKH Properties launched its broader ₦30 billion Commercial Paper Programme. The company has indicated that future fundraising under the programme could provide additional financing as its business and project pipeline expand.
The transaction also comes at a time when Nigerian businesses are increasingly exploring alternative sources of funding as they seek to manage rising costs and finance expansion.
For investors, commercial paper provides access to short-term fixed-income instruments, while companies benefit from another avenue for raising capital.
MKH Properties said the latest transaction represents only the beginning of its broader capital-market plans. Management is now expected to focus on deploying the funds toward expansion and project delivery.
The company has emphasised that raising the money is only one part of the process, with the implementation of its projects expected to determine how effectively the new capital supports its growth.
With the first ₦10 billion series oversubscribed, MKH Properties has established an initial presence in Nigeria’s commercial paper market and created an additional financing channel for its real estate expansion.
