Coleman Wires and Cables (Coleman Technical Industries Ltd) successfully admits N6.05 billion series 3 & 4 Commercial Paper (CP) under its N 20 billion CP Issuance Programme on the FMDQ Exchange.
Reacting to the new development, the Managing Director/CEO of Coleman, Mr. George Onafowokan said this would enable the company to increase the capacity of the business with additional working capital.
- Buhari congratulates Radio Nigeria Kaduna at 60
- Energy Crisis: Nigeria to lose N1.2bn daily over Agip oil export cut
He said it will give alternative funding from the debt capital market via Pension Fund Asset (PFA) managers, asset managers and other fund managers.
“It also gives us the availability of a pool of funds from the capital market and enables us to increase the capacity of our business with an additional working capital availability through commercial paper and that impact our ability to increase capacity or increase efficiency that we can then build on it as a company to increase the availability of products to the country at a more affordable price”, he added.
Speaking on the benefits, Onafowokan explained that Nigeria as a whole would benefit from Coleman’s access to alternative funding at a better rate.
He continued, “Coleman being able to increase its capacity and efficiency and make cables more affordable for Nigerians as a whole would affect the market positively.
The MD stressed further, “The available capital would translate to job creation because Coleman has embarked on expanding its capacity in the past year and the company is expected to open three new factories, which are Sagamu two factories for the production of marine cables and gap cables for transmission. This will create additional jobs and the working capital will be going into the new factories as well as the optic fiber cables factory to be open also at Arepo in the next quarter.
“This will also impact jobs and we expect over 500 direct jobs and indirect jobs of over 20,000”, said Onafowokan.