Nigeria: Firm issues N5 billion CP for housing development

A Lagos-based firm, God Made Homes (GMH) Limited, has signed a N5,000,000,000 Commercial Paper (CP) agreement with Qualinvest capital limited, Pathway advisors limited and six other professional parties to provide homes for Nigerians.

The other six parties are Dupont capital advisory limited, Keystone bank, Ferdinand Eze & Co-auditor to the issuer. The new practices- solicitors to the transaction, Chariots and Spirit LP- solicitors to the issuer and STL Trustees limited- trustees.

Chief Executive Officer of GMH, Ayoolanrewaju Joseph, who spoke during the signing of the agreement, said the fund will ensure that the firm delivers the projects to specification, as well as timely completion.

Joseph said: “Funding has been a major issue in the real estate finance sector. This will help to reduce our cost overrun in the long run by having enough capital to purchase finishing materials.”
He further disclosed that the issuing houses are Qualinvest capital limited and Pathway advisors limited, adding that Keystone bank will provide the guarantee for the CP.

Joseph said the firm has covered over 70 units of housing in seven years of existence.
A representative of STL Trustees limited, Akin Oni, said STL is to play the role of trustee in the transaction, adding that the CP is secured and backed by keystone bank.

Oni said: “CPs are not long tenure districts but depending on when it is issued, it’s probably not going to be more than 270 days. It won’t be issued at once since it is N5 billion, it will come out in bits depending on how the market receives it.”

Source: The Guardian, Nigeria