(Ecofin Agency) - The debt securities will help fund local firms outside the banking system.

Afrinvest Capital announced, Thursday (January 12), the issuance of up to NGN5 billion (US$11 million) in commercial papers, via its investment bank DLM Capital Group.

A commercial paper is a negotiable debt instrument issued in the money market to allow companies to borrow on near-market terms without going through the traditional banking system. With that instrument, DLM Capital Group will raise capital abroad and in Nigeria and make it available to local companies in a variety of sectors (agriculture, housing, transportation, infrastructure, etc.) under alternative and customized financing mechanisms.

With such an initiative, Afrinvest Capital wants to mobilize funds in the national and international markets to support socioeconomic development in Nigeria. The announced issuance is part of a larger program that aims to issue NGN20 billion in commercial papers. Let's note that this is not the first time Afrinvest is issuing such instruments to finance local firms.

Chamberline MOKO