MKH Properties Limited has successfully closed Series 1 of its ₦30 billion Commercial Paper Programme after subscriptions exceeded the ₦10 billion issue size, marking a strong debut for the real estate developer in the domestic commercial paper market.
The outcome comes shortly after the company executed the ₦30 billion programme in Lagos, with Pathway Advisors Limited acting as financial adviser and lead arranger. The programme was established to provide MKH Properties with additional funding capacity for expansion and project delivery.
Series 1 carried a 364-day tenor, a 25.0001% yield, a 20.0110% discount rate and a minimum subscription of ₦5 million.
The fact that demand exceeded the ₦10 billion target makes the first series particularly significant for MKH Properties as it establishes its presence in a funding market that has increasingly become relevant to Nigerian property developers.
More than a fundraising exercise
For MKH Properties, the successful close is not simply about meeting a capital target. It represents the first completed transaction under a programme designed to support the next phase of the company’s expansion.
Against this backdrop, MKH Properties’ Series 1 performance gives the company an important early outcome as it seeks to build a longer-term capital-raising strategy.
Dr Muibi Kehinde Hammed, CEO of MKH Properties, said the successful outcome was significant for the company.
“For MKH Properties, this is more than successfully closing a ₦10 billion Series 1. It is the successful completion of our first step in this market, and we are proud of the confidence investors have shown in our business. To have our first series oversubscribed is a milestone we do not take lightly.”
Capital with a clear purpose
The funds are being raised to support its expansion strategy and strengthen the company’s ability to execute its growing portfolio of developments.
The company’s management has previously said the commercial paper programme is intended to expand the business and increase its capacity to undertake larger opportunities.
The successful close now places greater emphasis on execution, as investors and other stakeholders look to see how the capital translates into project delivery and business growth.
Dr Muibi Kehinde Hammed said the company recognises the responsibility that comes with the confidence shown by investors.
“We are grateful to every investor who participated in Series 1 and to everyone who has continued to invest in our existing projects. For us, raising the capital is only one part of the journey. What matters now is what we do with it. We intend to deploy the funds responsibly towards expansion and project execution, and we are committed to ensuring that our stakeholders see the results of that investment in the projects we deliver.”
A new phase for the business
The Series 1 outcome gives MKH Properties an early indication of investor appetite as it progresses under its ₦30 billion programme.
The company has previously indicated that it expects its future capital-market activities to support larger growth ambitions, with Dr Hammed stating at the programme signing that the company could return to the market for a larger amount in the future.
MKH Properties will continue to focus on project delivery, expansion and creating value for its existing customers and investors.
The company currently operates across Lagos and Ibadan and has allocated more than 1,000 plots across 12 estates, with a portfolio exceeding $50 million.
The successful close of Series 1 therefore represents an important point in the company’s growth journey, but the next measure of the programme will be its ability to convert access to capital into completed projects, expanded operations and sustained business growth.
