Coleman Technical Industries Limited is targeting to raise up to N25 billion from its series 1 & 2 Commercial Paper (CP) Issuance.
The company’s primary focus is the manufacturing of electrical wires and cables that meet international standards for various industries such as power, oil and gas, real estate, and infrastructure.
The CP issuance which is scheduled to close on Friday May 30 is under its N100 billion Commercial Paper Programme.
Coleman Technical Industries Limited has sustained a consistent string of financial successes in their FY 2024 financial result, with revenue increasing by 154 percent year on year (Y-o-Y) to N137.73 billion, net income growing by 111 percent Y-o-Y to N31.08 billion, and total assets growing by 30 percent Y-o-Y to N147.78 billion as of the end of FY 2024.
The company significantly reduced its leverage position, with total borrowings declining by 49 percent from N44.93 billion in 2023 to N22.91 billion in 2024, underscoring its strong financial standing.
As part of its strategic funding initiative, Coleman is seeking to raise working capital to support its short-term working capital requirements.
Coleman Technical Industries Limited is a 100 percent indigenously owned private limited liability company established on July 1, 1975.
Coleman has been dedicated to developing local industries that create employment opportunities through the production of high-quality products.
In its 47 years of operations, Coleman has become the largest producer of cables and wires in West Africa, solidifying its position as the industry leader in Nigeria. This achievement is attributed to its strong management team, which boasts over 150 years of combined industry experience.
In 2022, the company commissioned its fibre optic production line, Arepo III Project, valued at $70 million positioning Nigeria as the fifth-largest producer of fibre-optic cables in Africa which continues to support the drive of the digital economy in the West African region.
With a production capacity of 162,000 metric tons per annum, this factory enables Coleman to actively participate in the African Continental Free Trade Area (“AfCFTA”), leading to increased earnings, foreign exchange conservation, technology transfer, and the generation of direct and indirect employment opportunities for the local population.
The resurgence in the oil and gas sector and the drive for local content has also become a catalyst for Coleman’s growth.
This is evident from the contract of $65million annually secured by Coleman for the supply of cables to the Nigeria LNG Limited (NLNG) $10billion project for five (5) years ending in 2027. The contract spans across multiple products including instrumentation cables, fibre-optic cables, low and heavy-duty electrical cables.
Subsequently, Coleman has embarked on a backward integration project with the construction of a copper and aluminum smelter plant (Sagamu III Project) to minimise its exposure to raw material supply and foreign exchange risks.
Coleman holds a long-term issuer rating of “A-” by GCR Ratings and “A-” by Agusto & Co. These ratings are supported by the company’s well-established market niche, diverse product portfolio, stable earnings, and cash flows.
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