Polysmart Packaging repays N5.7bn debt ahead of new rPET plant launch

Polysmart Packaging Limited, identified as Nigeria's largest plastic recycling company, has completed the full repayment of its non-interest commercial paper (NICP) programme. The company settled maturity payments across four distinct series, amounting to a total of ₦5,711,405,308.33. Marble Advisory Limited served as the Lead Arranger and Financial Adviser for this transaction. The final settlement, covering Series 4, was executed ahead of its scheduled maturity date of October 21, 2026.

The repayment concludes a financing arrangement that was initiated between April and October 2025 under a ₦4 billion programme. The funds raised through these instruments were allocated to support the working capital necessary for the company's expansion. By clearing these debts, Polysmart has fulfilled its obligations to investors prior to the major operational milestone scheduled for late October 2026.

Background

The NICP programme consisted of four series issued over a six-month period in 2025. Series 1, valued at ₦1,004,958,000.00, matured in October 2025. This was followed by Series 2, worth ₦1,069,745,000.00, which matured in January 2026. Series 3, with a value of ₦1,118,704,500.00, reached its maturity in July 2026. The largest tranche, Series 4, amounted to ₦2,517,997,808.33 and was settled before its October 2026 deadline.

According to Wasiu Bolaji Balogun, the Managing Director of Polysmart Packaging, the timely repayment of all four series is intended to demonstrate the company's commitment to its investors. He stated that the company aims to maintain trust as it enters its next phase of growth. Akeem Oyewale, a Director at Marble Advisory, noted that the transaction illustrates the effectiveness of well-structured, non-interest commercial paper programmes for companies operating in the real economy. He expressed pride in advising on the deal from its inception and observing its disciplined delivery.

Why it matters

The financial settlement coincides with the upcoming commissioning of a significant new facility in Ogun State. Projected to commence full operations on October 29, 2026, this $60 million facility is characterized as the biggest food-grade recycled PET (rPET) recycling plant in both Nigeria and Africa. The facility is designed to process 100,000 tonnes of mixed plastics annually, which equates to the recycling of more than 5.5 billion PET bottles each year.

The plant will utilize advanced European technology, specifically incorporating systems from EREMA, SOREMA, and TOMRA. The manufacturing procedures have received clearance in accordance with the food-contact regulations established by the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA). This capacity enables Polysmart to manufacture food-grade rPET, HDPE, LLD, and PP, which will help decrease the nation's dependence on imported virgin plastic. The successful repayment of the debt underscores the issuer's asset-backed status and its ability to fund growth while meeting financial obligations.

What happens next

The primary next step for Polysmart Packaging is the full commissioning of the Ogun State facility on October 29, 2026. Once operational, the plant will begin processing the specified volume of mixed plastics to produce recycled materials that meet international food safety standards. The company has indicated that the trust established through the debt repayment will support its continued expansion and operational growth in the recycling sector.