Nigerian Exchange Limited has admitted a N10 billion commercial paper issued by NGN Gram Limited and listed additional units of Chapel Hill Denham Nigeria Infrastructure Development Fund, in a move that underscores growing activity in Nigeria’s fixed income market.
The listings, which took effect on March 17, 2026, were disclosed in the exchange’s weekly market report issued March 18, marking continued efforts to deepen debt market instruments and broaden investment options for institutional investors.
The NGN Gram issuance comprises Series 1, split into three tranches valued at N809.3 million, N472.4 million and N8.72 billion, under a N10 billion programme. The structure was heavily skewed toward longer tenors, with the 364-day tranche accounting for more than 85 percent of the total size.
The longest-dated tranche was priced at 80.36 percent of par, implying a yield of about 24.5 percent, compared with 23.0 percent for the 270-day note and 21.5 percent for the 182-day paper. Discount rates ranged between 19.4 percent and 19.7 percent, suggesting relatively tight pricing despite differences in maturity.
The deal was arranged by Comercio Partners Capital Limited, with Fidelity Bank Plc acting as paying agent, highlighting the role of financial intermediaries in facilitating corporate access to short-term funding.
Commercial papers, typically issued at a discount and redeemed at face value, have gained traction among corporates seeking alternatives to bank borrowing amid elevated interest rates. The dominance of the 364-day tranche points to investor appetite for locking in high yields for longer periods, even as expectations build around a possible easing in monetary policy.
The listing follows a similar admission by Dangote Cement Plc, reflecting the exchange’s push to expand its fixed income segment and improve liquidity and price discovery in Nigeria’s debt market.
Alongside the commercial paper, NGX also admitted 296,464 additional units of the Nigeria Infrastructure Development Fund following a fourth-quarter 2025 scrip dividend issuance. The addition increased total outstanding units of the fund to about 1.197 billion, up from 1.196 billion.
Scrip dividends, which allow investors to receive additional units in place of cash payouts, have become a tool for fund managers to conserve liquidity while maintaining investor returns and deepening market participation.
The dual listing highlights a broader shift in Nigeria’s capital markets, where both issuers and investors are adjusting strategies to navigate tight liquidity conditions and high borrowing costs. Corporates are increasingly turning to structured debt instruments for short-term financing, while investors seek yield in a high-rate environment.
For NGX, the expansion of commercial paper listings and fund units signals progress in building a more diversified market, with fixed income instruments playing a larger role alongside equities in channeling capital to businesses and infrastructure projects.