Nosak Distilleries Limited, a Nigerian company with substantial interest in ethanol processing and distribution, has redeemed its N6 billion Series 4 Commercial Paper (CP) issuance, bringing the total amount of its redemption since October 2022 to N26 billion.

The latest CP redemption was the fifth under the N20 billion programme initiated by the company on the FMDQ platform.
According to a statement, Nosak Distilleries had issued the four CPs in tranches ranging from N5 billion to N10 billion, all of which were utilised by the company to finance its working capital.

Nosak Distilleries is a member of Nosak Group, a Nigerian business entity operating across the various segments of the ethanol and oil palm value chains, spanning cultivation, milling, processing, distribution, packaging and exports.
Apart from Nosak Distilleries, other members of the Group include Nosak Farm Produce Limited, Saturn Farm Limited, Zex Standard Pharmaceutical Limited and Premier Plantations Limited.

Commenting on the development, Group Managing Director of Nosak Group, Thomas Oloriegbe said: “Our ability to successfully redeem the commercial papers in four issuances, without fail, is a testament to the effectiveness of our business model and agile strategy which has proven resilient despite the enormous challenges in the Nigerian business environment.”
He noted that the company’s superior product offering and customer service delivery have remained core principles over the last 35 years of operations, cementing its status as the company of choice among the various users of ethanol in Nigeria and the West African sub-region.

He added that the company had reached an advanced stage in raising funds of longer tenors, particularly corporate bonds, which he said would be utilised to drive its medium to long-term strategic agenda and deepen its presence in the Nigerian business environment.

Oloriegbe disclosed that the organisation was constructing a 150,000 litres per day cassava to ethanol plant in Urhonigbe, Edo State as part of its backward integration strategy and that the project, when completed would help bring its products closer to customers in the south-south, south-east and middle belt parts of the country.
He further said the Group was also intensifying efforts in the oil palm space, noting that the organisation has commenced work in the cultivation of 5,000 hectares of land in Owan West Local Government Area of Edo State.

“When this project is completed, it would produce over 60,000 MT of crude palm oil annually to reduce the importation of edible oils in the country,” he said.

Oloriegbe commended the investors who have consistently identified with the company since it launched its CP programme over three years ago, pointing out that his management team would continue to ensure that their “expectations are always met as we have done in the past couple of years”.

The Managing Director of Boston Advisory Limited, Mr. Olufunso Popoola, said his company is very excited working with Nosak Distilleries.

“The successes of these transactions have confirmed that there are opportunities in the Nigerian environment if the right business model is put in place.”

“Nosak Distilleries has never defaulted for a day across all these transactions. These developments speak to the solid fundamentals of the business and the time-tested strategy of the Group as a whole, a strategy that has endured the various cycles of turbulence within the Nigerian environment,” he said.

Corroborating this position, the Managing Director of Radix Capital Limited, Mr. Seni Oduwole, said that Nosak Distilleries has now proven its mettle in the Nigerian investment community and should be commended for keeping faith with its promises.

Radix Capital is the joint financial adviser for all the CP transactions.

He commended the company’s exceptional level of discipline, noting that “we are confident that the company will sustain this impressive record in the years ahead as it strengthens its operations to deliver more value to its various stakeholders.”

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