Johnvents Industries Redeems N5.5B Series 1 Commercial Paper

Johnvents Industries Limited, a homegrown agribusiness and manufacturing conglomerate, takes great pleasure in announcing the successful redemption of its obligation related to the N5.5 billion Series 1 commercial paper notes, which were originally issued in December 2022.

The journey of Johnvents since its inception in 2016 has been nothing short of remarkable. It has witnessed exceptional growth, with its revenue skyrocketing from N2.8 billion in 2019 to a staggering N59 billion in 2022. This meteoric rise is not just limited to the financial aspect; the company has also significantly expanded its scope of services. It has evolved from a modest commodity trading operation into a full-fledged food and agribusiness group. Johnvents now encompasses semi-finished and consumer goods, commodities trading, as well as logistics.

The magnitude of this growth led to the company’s decision to establish a N30 billion Commercial Paper Programme in October 2022. Shortly thereafter, Johnvents successfully raised N5.5 billion through its Series 1 Commercial Paper Issuance, primarily to meet its working capital requirements.

Mr. John Alamu, the Group Managing Director of Johnvents Group, expressed his gratitude, saying, “We deeply appreciate the support of the Nigerian institutional investor community, which has played a pivotal role in the rapid expansion of our business. As we continue our mission to build Africa’s largest and most successful food and agribusiness group, the Board of Johnvents is committed to maintaining the confidence of its investors and consistently exceeding the expectations of stakeholders and regulators in both the domestic and international financial markets.”

Dr. Gbadebo Adenrele, the Managing Director of Investment Banking at United Capital Plc, added, “United Capital Plc is pleased to have acted as Lead Arranger for Johnvents Industries Limited in its successful capital raising rounds and the repayment of N5.5 billion as the first series in its Commercial Paper Issuance Programme. This serves as a testament to the company’s unwavering commitment to its strategic growth objectives. We will continue to leverage our extensive understanding of the capital markets to provide robust support to Johnvents, as well as other SMEs and mid-market enterprises seeking funding.”

Johnvents holds a BBB rating by GCR Ratings Limited and a BBB+ rating by Datapro Limited. The upgraded GCR rating (from BBB-) signifies that Johnvents’ competitive position has been significantly bolstered, mainly through the integration of a 15,000-tonne cocoa processing plant acquired in 2021 and subsequent acquisitions of additional processing assets. This strategic move has positioned the company as one of Nigeria’s largest exporters of processed cocoa butter and powder, serving international blue-chip food and confectionery companies among its clientele.

About Johnvents
Johnvents Group is a Nigerian agribusiness and manufacturing conglomerate with a steadfast commitment to driving sustainable growth across the entire agricultural value chain. The company’s operations span production, processing, manufacturing, and distribution, placing it at the very heart of the agricultural sector. Johnvents unlocks substantial value and ensures a stable food supply while delivering premium export products for Africa.

Johnvents operates under a group structure, consisting of six businesses, each dedicated to propelling sustainable growth across the agricultural value chain. These businesses cover production, processing, manufacturing, and trade of commodity and food products in Nigeria and beyond. The subsidiaries include:

1. Johnvents Cocoa Factory, Akure: This 15,000 MT plant produces Cocoa Liquor, Butter, Cake, or Powder. Since commencing operations in 2021, it has exported 20,000 MT of cocoa butter and cake to various European countries, the USA, and other parts of the world.

2. Premium Cocoa Products (Ile-Oluji): This plant, with a global legacy, is Nigeria’s pioneer cocoa processing facility. It boasts a 30,000 MT cocoa processing capacity, producing globally recognized cocoa products. Johnvents acquired this plant in February 2023.

3. Johnvents Foods: Known for its product range, Johnvents Foods introduced Johnvents Pure Cocoa Powder, an everyday beverage that offers 100% cocoa nourishment. The company also acquired a cocoa product factory in Idanre to produce Oluji Pure Cocoa Powder, Johnvents Chocolate drink, Cocoa Pops, Cocoa Cube, and other cocoa-based products.

4. Johnvents Trading: A crucial player in the commodity value chain, Johnvents Trading possesses a combined warehouse capacity of 15,000 metric tonnes across locations in Kano and other parts of Nigeria. It has the capability to store up to 75,000 bags at any given time and excels in the procurement, storage, and trading of multiple commodities, including paddy and processed rice, soybeans, sesame seeds, and cocoa.

5. Haven Hauling: This is Johnvents’ logistics and export business. It boasts a state-of-the-art transport fleet, comprising over 50 trucks, and is staffed by highly experienced freight and export personnel. These elements ensure the timely and secure delivery of Johnvents’ products to their intended destinations.

6. Johnvents Farms: The company owns a combined 800 hectares of land in Oda and Ile-Oluji, Ondo State. Among its landholdings, the Ile-Oluji property features 50 hectares of palm oil plantations, while the extensive 750 hectares of farmland in Oda are primarily devoted to the sustainable production of cocoa.

Johnvents’ diverse portfolio and strategic acquisitions have cemented its position as a prominent player in the agricultural and agribusiness landscape in Nigeria. As the company continues to expand and innovate, its commitment to excellence in food production, processing, and distribution remains unwavering, contributing significantly to the nation’s economic growth and food security.

In conclusion, Johnvents Industries Limited’s journey is a testament to the potential and growth prospects of Nigeria’s agribusiness sector. Through visionary leadership, strategic investments, and a commitment to excellence, Johnvents has transformed from a small commodity trading operation into a major player in the global agribusiness industry. Its dedication to sustainability, innovation, and the highest standards of quality has positioned it as a leader in the production and export of cocoa products, contributing to the growth of the Nigerian economy and the well-being of its people. As Johnvents continues to evolve and expand its operations, it remains a beacon of success and a model for others in the industry to emulate.