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Xplore February 2021: Financing the Demand Side

Commodities	649 VIEWS
Commodities
649 VIEWS

Wednesday, March 03, 2021 06:30PM / Kainosedge Consulting for AFEX Commodities Exchange / Header Image Credit: The Economics Times

In February we announced the successful issuance of a N25 billion asset-backed commercial paper. The commercial paper, which was listed in Q4 2020, was 20% oversubscribed and was the first-ever warehouse receipt backed commercial paper listed on an Exchange in Africa. We built the asset-backed commercial paper on a 5-year history and legacy of being able to provide storage and collateral management for commodities using world-class processes but also top-tier talent that manages the base itself.

The deal provided economic benefits including the management of price volatility and allowing processors up to 30% direct savings on prices. Financing the demand side also enables finance to flow in the direction of producers/ suppliers who can sell their produce to fulfill orders from processors.

At a macro level, it helps to stabilize food prices across the country, and social impact is delivered along the lines of market access for farmers and a reduction in post-harvest losses, with AFEX continuing to contribute to SDG's 1, 8 and 12; no poverty, zero hunger and economic growth.

ABCP Announcement

Here are some highlights from an awesome February:

We have resumed publishing the AFEX Commodities Weekly Report in video across our social media pages. Linking our LinkedIn and Instagram here.
Our Vice President, Financial Markets, Akinyinka Akintunde, joined the Vetiva Discourse Series to discuss wealth creation in stormy times along with other experts.

The MD of our Fair Trade business unit, wrote an insightful OpEd on Why Africa needs fair trade to create a sustainable agro-commodity sector. Catch the OpEd here.

Xtra Special

AFEX Feature in Food Business Africa

Read Food Business Africa's extensive coverage of AFEX, which highlights AFEX's work including our management team profile, key milestones, impact and vision for the future. Read "AFEX Nigeria: Transforming Grains Commodity Market with Technology" here.

AFEX Impact Report Coming Soon

We are set to release the AFEX Impact Report, which tracks our journey over the last five years, and our impact contributions to the Sustainable Development Goals. We are excited to unveil this report in March and recommit to driving impact on the continent through our work and activities in the market.