MKH Properties Limited has successfully closed Series 1 of its ₦30 billion Commercial Paper Programme after subscriptions surpassed the ₦10 billion target, marking a significant milestone for the real estate developer in Nigeria’s domestic commercial paper market. The transaction, executed in Lagos with Pathway Advisors Limited serving as financial adviser and lead arranger, aims to bolster the company’s expansion and project delivery capabilities. Series 1, issued with a 364-day tenor, carried a 25.0001% yield and a 20.0110% discount rate, requiring a minimum subscription of ₦5 million. The oversubscription underscores growing investor confidence in the developer’s financial strategy and market positioning.
The successful closure of Series 1 establishes MKH Properties as a key player in Nigeria’s capital markets, where property developers increasingly rely on commercial paper to fund growth. Dr Muibi Kehinde Hammed, CEO of MKH Properties, emphasized the significance of the achievement, stating, “This is the successful completion of our first step in this market, and we are proud of the confidence investors have shown in our business.” The funds will support the company’s expansion, including ongoing projects such as MKH City, Chelmsford City, and MKH Shopping Mall, which are spread across Lagos and Ibadan. The company currently manages over 1,000 plots across 12 estates, with a portfolio valued at more than $50 million.
Dr Hammed highlighted the company’s commitment to responsible capital deployment, noting, “Raising the capital is only one part of the journey. What matters now is what we do with it.” The Series 1 outcome provides MKH Properties with early validation of investor appetite, which could pave the way for future capital-market activities. The developer has indicated plans to return to the market for larger funding rounds, contingent on successful project execution. However, the next critical test for the company will be translating capital access into tangible developments and sustained growth, as stakeholders closely monitor its ability to deliver on promises.
The commercial paper programme reflects MKH Properties’ broader strategy to diversify funding sources and scale operations in a competitive real estate landscape. With Nigeria’s property sector facing challenges such as inflation and regulatory scrutiny, the developer’s ability to secure private capital highlights its financial resilience. The success of Series 1 also signals a potential shift in investor behavior, as institutional and retail participants increasingly view commercial paper as a viable tool for real estate financing. As MKH Properties moves forward, its focus will remain on project delivery, stakeholder value creation, and maintaining the trust of investors who backed its inaugural capital-raising effort.