Nosak Distilleries Limited, a player in Nigeria’s ethanol processing and distribution sector, has redeemed its N6 billion Series 4 Commercial Paper (CP) issuance, bringing the total redemption since October 2022 to N26 billion.
According to a statement, the latest redemption marks the fifth under the company’s N20 billion CP programme, which was launched on the FMDQ platform. The company has strategically issued four CPs in tranches between N5 billion and N10 billion, utilising the proceeds to finance its working capital.
Thomas Oloriegbe, the group managing director of Nosak Group, highlighted the company’s commitment to financial discipline and resilience.
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“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 said.
Nosak Distilleries, a subsidiary of Nosak Group, operates within the broader ethanol and oil palm value chain, which includes cultivation, milling, processing, distribution, packaging, and exports. Other subsidiaries in the group include Nosak Farm Produce Limited, Saturn Farm Limited, Zex Standard Pharmaceutical Limited, and Premier Plantations Limited.
As part of its long-term strategic agenda, the company is in advanced stages of raising funds through corporate bonds to deepen its market presence. It is also constructing a 150,000-litre-per-day cassava-to-ethanol plant in Urhonigbe, Edo State, a move aimed at enhancing its backward integration strategy and improving product accessibility for customers in the South-South, South-East, and Middle Belt regions.
Furthermore, Nosak Group has commenced cultivating 5,000 hectares of land in Owan West Local Government Area, Edo State, for oil palm production. Upon completion, this project is expected to produce over 60,000 metric tonnes of crude palm oil annually, reducing Nigeria’s dependence on imported edible oils.
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Industry stakeholders have commended Nosak Distilleries for its financial discipline and reliability. “Nosak Distilleries has never defaulted for a day across all these transactions. This demonstrates the solid fundamentals of the business and its time-tested strategy,” Olufunso Popoola, managing director of Boston Advisory Limited said.
Similarly, Seni Oduwole, the managing director of Radix Capital Limited praised the company’s commitment to its financial obligations and investor confidence.
“Nosak Distilleries has now proven its mettle in the Nigerian investment community and should be commended for keeping faith with its promises,” he said.
