VFD Group launches a N20 billion commercial paper issuance to fund short-term working capital amid strong H1 2026 earnings.

VFD Group Plc opened its N20 billion Commercial Paper (CP) issuance on August 28, 2026, which is scheduled to close on September 4, 2026.

The issuance is divided into two tenors: a 270-day series yielding an implied 21.50% and a 364-day series yielding an implied 23.50%.

The minimum investment is set at N5 million, offering investors a premium over the 364-day Treasury Bill rate which cleared at 20.35% on August 26, 2026.

VFD Group's H1 2026 performance supports the raise, with profit after tax more than doubling to N10.1 billion and shareholders' funds rising to N124.9 billion.

For corporate treasurers and fixed-income investors, VFD Group's 23.50% yield offers an attractive 3.15 percentage point premium over traditional 364-day Treasury Bills.

However, because commercial papers carry corporate credit risk, investors should closely monitor the group's relatively tight 1.5x interest-coverage ratio over the 364-day tenor.

This issuance signals that top-tier Nigerian corporate holding companies are continuing to bypass banking institutions for short-term working capital, leveraging high-yield paper to secure liquidity directly from capital markets.