L-R: Suzan Samuel, Chairman, Efficacy Development PLC; Group Executive Director, Damilola Ajiboye; Group Managing Director, Efficacy Development, Oyeleke Ajiboye; Founder, Pathway Advisors Limited, Adekunle Alade; and Co-founder/Director, Alade, at a recent event in Lagos.
Efficacy Development PLC, a real estate developer, has signed a N50 billion Commercial Paper agreement with Lagos-based investment bank Pathway Advisors Limited (PAL) to accelerate property completion, hedge against inflation, and expand its housing portfolio.
According to the company, the N50 billion short-term facility will serve as critical working capital, allowing it to complete ongoing residential and commercial projects that are currently between 30 percent and 80 percent finished.
Oyeleke Ajiboye, Group Managing Director, Efficacy Development PLC, said that by injecting capital into advanced-stage builds, the company aims to deliver units to the market within two to three months while insulating project budgets from macroeconomic volatility and rising material costs.
Ajiboye said the fund will help the company indirectly expedite ongoing projects and mitigate against inflation and fluctuations in market prices, adding that it gives the company more liquidity and the ability to close out projects faster, keeping investor yields high and making our operations more profitable.
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The GMD said that completed housing units will be accessible to buyers through structured payment options, including mortgage access via the National Housing Fund (NHF) and MRIEF, further driving the firm’s affordable housing expansion.
Addressing potential questions regarding short-term debt structures for real estate development, lead financial advisers Pathway Advisors Limited emphasised that the capital strategy targets near-complete assets to ensure fast capital turnover.
Adekunle Alade, founder & Group Managing Director, Pathway Advisors Limited, said Commercial paper is an instrument that helps companies finance working capital requirements. Efficacy has many projects at different stages of completion; this financial paper allows them to finish projects that are 30 to 80 percent complete within two to three months.”
Suzan Samuel Joseph, Efficacy Development Chairperson, described the agreement as a strategic leap that unlocks fresh sales funnels and strengthens the company’s balance sheet for future developments.
According to the transaction Breakdown, the issuer is Efficacy Development PLC, Financial Adviser, Pathway Advisors Limited (PAL), Receiving Bank, Keystone Bank, Legal Counsel, Grey Chapel Legal, and Auditor, Onyeke Onyirioha & C
Closing the ceremony, Oluwadamilola Ajiboye, Executive Director of Sales and Procurement at Efficacy Development, expressed appreciation to the transaction parties for executing the deal within a three-month structured window.
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