FairMoney, a leading provider of innovative financial services and digital lender in Nigeria, is thrilled to announce the successful raising of N5.3bn in its latest commercial paper (CP) issuance. This marks a significant achievement with nearly 100% oversubscription, reflecting the confidence investors have in the company’s robust financial performance and future prospects.
The CP issuance was structured to offer investors a secure and attractive return across two tenors, 180 days and 270 days. The overwhelming demand for this offering highlights not only the market’s confidence in FairMoney’s strategy but also the company’s continued commitment to strengthening its balance sheet and expanding its market share.
Since the beginning of 2024, the company has delivered an impressive financial performance. FairMoney demonstrated a remarkable 56.76% growth in revenue year-on-year and a threefold increase in profitability compared to 2023. FairMoney has also made significant strides in improving its profitability margins. The company’s cost-to-revenue ratio and impairment charge relative to revenue both showed substantial improvements, signaling a more efficient operation and a sharper focus on sustainability. These efforts, combined with a solid track record of prudent financial management, have resulted in a consistent revenue growth, substantial reduction in risk exposure, and an improved overall credit profile.
The company’s assets have also seen strong growth, increasing by nearly 60% year-on-year as of FY 2024. This impressive growth trajectory further reinforces its position as a leading financial institution with a sustainable growth path. The positive outlook was also reaffirmed by its GCR rating in November 2024.
In a statement regarding the oversubscription of the commercial paper, Henry Obiekea, Managing Director of the Company, expressed his gratitude to the investors for their continued trust in the company: “The success of this commercial paper issuance underscores the strong market confidence in FairMoney’s growth prospects and our ongoing commitment to delivering value to our stakeholders. We have seen substantial growth in both revenue and profitability over the past year, and this oversubscription is a clear reflection of our improved financial health and strategic direction. We are excited about what the future holds and remain focused on building a more sustainable and inclusive financial ecosystem for our customers.”
The company’s success in raising additional capital through this oversubscribed CP offering comes at a time when market conditions are increasingly favourable for well-positioned financial institutions. It highlights the effectiveness of the Company’s strategy of providing accessible, unsecured digital loans and other essential financial services to both individuals and businesses in an increasingly competitive space.
As the Company continues to expand its footprint in the financial services industry, its proven track record in innovation, profitability, and risk management ensures that it remains a cornerstone of financial empowerment for its customers. In line with its commitment to providing high-yield financial solutions tailored to meet the diverse needs of its customers, FairMoney has optimised its savings products—FairSave, FairLock, and FairTarget—offering returns of up to 28% per annum.
Overall, the oversubscription of the CP issuance signals a bright future as the company accelerates its efforts to meet the evolving needs of the market, delivering both solid returns for investors and continued growth for the business.
ABOUT FAIRMONEY
FairMoney is the leading financial services company focused on consumer and business banking and is currently the #1 digital lender in Nigeria. Over the last six years, the company has impacted the lives of millions of Nigerians, with the goal of rebuilding Africa’s money story by offering Tier 1 digital financial services to merchants and consumers alike.
The company offers a range of digital financial products, including Investments, high-interest savings, payment services, and cards. The company additionally offers near-instant digital loans 24/7 directly via its mobile app.
Additional information can be found on the company’s website at www.fairmoney.io
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