Overview: Coleman CP Series 5 & 6 Coming to Market
Afrinvest Capital Limited has announced the upcoming issuance of Series 5 and Series 6 Commercial Paper (CP) of up to ₦50 billion under the ₦100 billion Commercial Paper Programme of Coleman Technical Industries Limited (CTIL).
The offer is structured to provide short-term working capital funding for one of Nigeria’s most significant indigenous manufacturing groups, as it scales fibre optic production, backward integration, and export capacity.
About Coleman Technical Industries Limited (CTIL)
Founded on July 1, 1975, Coleman Technical Industries Limited is a 100% indigenously owned Nigerian manufacturer of electrical wires and cables serving:
• Power and utilities
• Oil and gas
• Real estate and construction
• Infrastructure and telecoms
In 2025, the company marks its 50th anniversary, having evolved from a domestic cable producer into a regional leader in digital and energy infrastructure manufacturing.
Coleman currently holds:
• A- long-term issuer rating (GCR Ratings)
• A rating (Agusto & Co.)
These ratings reflect:
• Strong and stable cash flows
• Market dominance in key segments
• Diversified product portfolio
• Improved earnings resilience
Investment Highlights
1. Africa’s Largest Fibre Optic Factory
In October 2025, Coleman commissioned a landmark fibre optic cable facility in Sagamu, Ogun State, with:
• Annual production capacity of 9 million kilometres
• Ability to meet 50% of Africa’s fibre optic demand
• Africa’s first Fibre-Reinforced Plastic (FRP) production line
This reduces Africa’s reliance on imported fibre optic infrastructure and positions Nigeria as a continental production hub.
2. Smelting & Backward Integration Strategy
To mitigate:
• Foreign exchange volatility
• Raw material supply risks
• Import dependency
Coleman completed a continuous casting copper and aluminium smelter plant in Sagamu.
Backward integration improves:
• Cost control
• Margin stability
• FX exposure management
This is a strategically significant move in Nigeria’s manufacturing sector, particularly amid currency volatility.
3. Strategic Partnerships & Contracts
Key milestones include:
• $65 million annual contract (through 2027) supplying cables to Nigeria LNG Limited (NLNG) Train 7
• Partnership with the Federal Government and U.S.-based Corning Inc. to train 5,000 Nigerians in fibre handling and splicing
These partnerships reinforce Coleman’s industrial credibility and regional expansion strategy.
4. Forward-Looking Expansion (2026 and Beyond)
Managing Director/CEO George Onafowokan projects:
• Multi-trillion-naira valuation trajectory
• Over 50% of revenue from exports
• Planned $100 million Fibre Optic Cable Drawing Tower to enable in-country glass fibre drawing
If executed, this would significantly deepen local value addition in Africa’s telecom infrastructure supply chain.
Financial Performance Snapshot (₦’000)
Income Statement Highlights
Metric 2021 2022 2023 2024 2025 (Unaudited)
Revenue 27,310,367 39,344,802 54,152,916 137,728,199 110,005,979
Operating Profit 4,292,781 6,757,288 14,516,148 63,225,737 24,239,294
Net Income 2,564,076 3,914,389 14,742,957 31,081,663 31,183,812
Revenue growth between 2021 and 2024 demonstrates significant scaling capacity, while profitability remains robust despite macroeconomic pressures.
Financial Position Highlights:
Metric 2021 2022 2023 2024 2025 (Unaudited)
Total Assets 43,038,115 63,073,542 113,901,500 147,797,022 202,449,741
Total Equity 12,206,516 15,146,178 28,426,635 53,630,827 70,895,986
Total Borrowings 15,181,012 22,432,272 44,933,515 22,909,007 69,566,028
The balance sheet expansion reflects:
• Capacity investments
• Working capital scaling
• Infrastructure deepening
Commercial Paper Offer Terms
Item Details
Issuer Coleman Technical Industries Limited
Programme Size ₦100 billion
Target Size (Series 5 & 6) Up to ₦50 billion
Series 5 Tenor 182 days
Series 6 Tenor 270 days
Minimum Subscription ₦5 million (multiples of ₦1,000 thereafter)
Issuer Rating A- (GCR); A (Agusto & Co.)
Use of Proceeds Short-term working capital
Taxation Applicable taxes apply unless exempt
Offer dates and discount/yield levels will be confirmed upon launch.
Why This Matters for Nigeria’s Capital Markets
Coleman’s CP issuance reflects several macro themes:
• Deepening of Nigeria’s short-term debt market
• Strong investor appetite for high-grade corporate paper
• Industrial scaling amid FX volatility
• Export-oriented manufacturing growth
For investors, the issuance provides exposure to a rated, cash-generating industrial issuer positioned at the intersection of:
• Telecom infrastructure expansion
• Energy infrastructure growth
• Regional export diversification