Daraju Industries returns to market with N5 billion Series 3 commercial paper

Daraju Industries Limited has announced the offer of N5 billion Series 3 Commercial Paper under its established N50 billion Commercial Paper Programme.

The issuance marks the company’s continued participation in the Nigerian short-term debt market to support short term funding.

The Offer opened on Wednesday, February 25, 2026, and is scheduled to close on Thursday, March 5, 2026

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What the offer circular is saying

• Issuer: Daraju Industries Limited
• Programme Size: N50 billion
• Series: 3
• Target Size: Up to N5 billion
• Tenor: 364 days
• Discount Rate (per annum): 18.7088%
• Implied Yield (per annum): 23.0000%
• Allotment Date: Thursday, March 5, 2026
• Settlement Date: Friday, March 6, 2026
• Maturity Date: Friday, March 5, 2027
• Minimum Subscription: N5,000,000 and multiples of N1,000 thereafter
• Issue Rating: A3 (GCR)
• Tax Consideration: Applicable taxes shall apply except otherwise exempt
• Use of Proceeds: To support short-term funding needs

**The company behind the offer **

Daraju Industries Limited is a wholly owned subsidiary of Ashwah Holdings Limited and operates in Nigeria’s fast-moving consumer goods (FMCG) sector.

The company maintains a diversified product portfolio spanning over 100 stock-keeping units across household and personal care segments, including the widely recognised MYMY toothpaste brand.

Headquartered in Lagos, Daraju maintains distribution hubs across Onitsha, Kano, Ota, Abuja, Asaba, and Ibadan, giving it a nationwide footprint.

Daraju holds a long-term issuer rating of BBB- and a short-term rating of A3 from GCR Ratings, supported by its established market position, diversified product mix, and stable operating profile.

**Get up to speed **

The company returned to profitability in 2024 after posting a loss of N8.3 billion in 2023, which was largely driven by a foreign exchange loss of N5.8 billion.

In 2024, Daraju scrambled back into the black with a modest profit after tax of N906 million. Momentum strengthened further in 2025, as profit after tax rose sharply to N3.29 billion.

The 2025 management accounts show that this was driven by growth in revenue and a reduction in operating expenses.

• Revenue stood at N110.94 billion, up 13% from N98.04 billion in 2024.
• Total operating expenses dropped by 31% to N7.7 billion
• Finance cost stood at N10.89 billion in 2025, up from N8.65 billion in 2024.

But the company was still able to generate an operating profit to cover interest expenses

• Interest coverage ratio stood at 1.44x in 2025, up from 1.40x in 2024 and 0.72 and 0.98x in 2023 and 2022, respectively.

On the balance sheet, total assets stood at N67.91 billion at year-end 2025, broadly flat compared to 2024.

• Total interest-bearing debt, including loans, commercial paper, bank finance and overdrafts, rose to N58.4 billion from N49.75 billion in 2024.

**What you need to know **

This Series 3 commercial paper is positioned as a short-term funding bridge under a N50 billion programme with a 364-day tenor.

• At a discount rate of 18.71%, the paper offers a gross return of N932,937, giving an implied yield of 23%, which is a premium relative to most risk-free instruments.

However, the attractive yield must be assessed alongside the underlying risk profile.

While earnings have improved and interest coverage has stabilised above 1x, the company’s capital structure remains highly leveraged.

Total interest-bearing debt increased in 2025, pushing the debt-to-assets ratio to 86% from 74% in 2024. This means a significant portion of the asset base is financed by borrowings.

• This indicates that a significant portion of the company’s assets is financed by borrowing.

Daraju’s earnings momentum is strong, with improving profitability and expanding distribution scale.

However, leverage remains high, and interest coverage is tight, making cash flow discipline central to repayment comfort.

At a 23% implied yield and supported by an A3 short-term rating from GCR, the paper offers an attractive short-duration return for investors comfortable with moderate leverage risk.

The key variables to watch over the life of the paper will be working capital management and the company’s ability to sustain operating cash generation above debt service requirements.

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