Efficacy Development PLC, has secured a ₦50 billion Commercial Paper facility
Leading real estate developer, Efficacy Development PLC, has secured a ₦50 billion Commercial Paper facility to accelerate the completion of ongoing residential and commercial projects and expand its housing portfolio. PropertyDevelopment
The company signed the agreement with Lagos-based investment bank, Pathway Advisors Limited (PAL), during an executive ceremony held at The Capital Club, Victoria Island, Lagos.
The short-term facility is expected to provide critical working capital for projects currently between 30 per cent and 80 per cent complete, enabling the developer to fast-track delivery and bring some completed units to the market within two to three months.
The funding will also help the company manage the impact of inflation, rising construction costs and fluctuations in the prices of building materials.
Group Managing Director of Efficacy Development PLC, Dr. Oyeleke Ajiboye, said the facility would provide the liquidity needed to complete projects faster while protecting investor returns.
“This fund will help us expedite ongoing projects and mitigate inflation and fluctuations in market prices. It gives us more liquidity and the ability to close out projects faster, keeping investor yields high and making our operations more profitable,” Ajiboye said.
He added that buyers would be able to access completed housing units through structured payment options, including mortgage financing under the National Housing Fund (NHF) and MRIEF.
Explaining the rationale behind the Commercial Paper structure, Founder and Group Managing Director of Pathway Advisors Limited, Mr. Adekunle Alade, said the facility was designed to support working capital needs and target projects close to completion.
Efficacy Development PLC, has secured a ₦50 billion Commercial Paper facility
To accelerate the completion of ongoing residential and commercial projects and expand its housing portfolio.
“Commercial paper is an instrument that helps companies finance working capital requirements. Efficacy has many projects at different stages of completion; this financial paper allows them to finish projects that are 30 to 80 percent complete within two to three months,” Alade said.
Finance Chairperson of Efficacy Development, Mrs. Suzan Samuel Joseph, described the agreement as a strategic move that would strengthen the company’s balance sheet, unlock new sales opportunities and support future developments.
The transaction parties include Efficacy Development PLC as issuer, Pathway Advisors Limited as financial adviser, Keystone Bank as receiving bank, Grey Chapel Legal as legal counsel, and Onyeke Onyirioha & Co. as auditor.
Closing the ceremony, Executive Director of Sales and Procurement at Efficacy Development, Dr. Oluwadamilola Ajiboye, commended the transaction partners for completing the deal within the structured three-month period.
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