Polysmart Packaging raises US$8.1M in oversubscribed commercial paper after recycling plant expansion

NIGERIA – Polysmart Packaging Group has raised N13 billion (approximately US$8.1 million) in a Non-Interest Commercial Paper issuance, achieving 30 percent oversubscription against the initial N10 billion (approximately US$6.2 million) offer after its recent US$60 million expansion.

The issuance was executed under the company’s N20 billion (approximately US$12.4 million) Non-Interest Commercial Paper Programme, with Series 1 (270 days) allotted at a profit rate of 23.25 percent and Series 2 (363 days) at 24.10 percent. 

Scaling West Africa’s Recycling Capacity

Polysmart’s US$60 million facility expansion has fundamentally altered the recycling landscape in West Africa, enabling the production of food-grade rPET, as well as non-food grade HDPE, PP, and other recyclable plastic materials. 

By producing high-quality rPET resin and flakes locally, Polysmart is reducing Nigeria’s manufacturing sector’s dependence on expensive virgin plastic imports, saving foreign exchange. 

The expansion is projected to create thousands of direct and indirect jobs.

Investor Confidence in Green Industrialization

The commercial paper raise provides significant short-term working capital buffers, ensuring the massive production scale of the new plant is matched by seamless supply chain logistics. 

The 30 percent oversubscription rate serves as a resounding validation of Polysmart’s credit strength, robust business fundamentals, and its pivotal role in Nigerian manufacturing.

Investor enthusiasm was bolstered by Polysmart’s financial discipline, following the successful full repayment of previous issuances.

A Blueprint for Circular Economy

By converting post-consumer waste into valuable industrial raw materials, Polysmart is simultaneously solving an environmental crisis and creating a sustainable economic engine.

The company’s vision extends beyond recycling plastic to recycling the concept of Nigerian industrial potential. 

With a remaining balance available under its N20 billion (approximately US$12.4 million) Non-Interest Commercial Paper Programme, more opportunities to partner with West Africa’s recycling powerhouse are on the horizon.

When Recycling Attracts Record Oversubscription

A 30 percent oversubscription for a commercial paper issuance is rare.

Achieving it in the same year as a US$60 million plant expansion is not a coincidence, it is a signal. Investors are betting that Polysmart’s recycling capacity will capture value from Nigeria’s waste stream while reducing import dependence. 

The plastic bottle recycled in Lagos today could become the packaging for tomorrow’s locally made product.

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