Firm issues N10 billion series 1 bond programme
Following the establishment of its N40 billion Bond Issuance Programme in July, Dufil Prima Foods Plc has successfully issued its inaugural Series 1 of N10 billion bond under the programme.
The Series 1 issuance achieved a 100 per cent subscription level with participation from a wide array of domestic (Pension Fund Administrator, Fund Managers and Commercial Banks) and foreign investors.
The bond was issued at a fixed coupon rate of 18.25 per cent for a tenor of five years, with a bullet repayment at the end of the tenor.
The proceeds of the issuance will be used to refinance existing debt obligations, and finance partial capital expenditure plans of the Company.
The debt capital market in Nigeria increasingly offers blue chip companies with a viable alternative or complementary option to finance their working capital requirements, and business expansion objectives.
The Company has previously launched several short-term commercial paper issuances under its N30billion CP Programme. All the funds raised under the series has matured and been repaid.
Speaking at the signing and completion meeting for the issuance at its corporate office in Lagos, the Chief Operating Officer, Madhukar Khetan, said; “Dufil as a Company operating in the Nigerian market for over two decades. It is pleased to have taken this additional step in expanding and diversifying its financing options beyond the conventional commercial bank debt market by establishing relationships with non-bank institutional investors in Nigeria.”
“Dufil Bond has received participation from both domestic and foreign Investors. In case of domestic investment, a wide range of top notch Pension Funds, Asset Managers and Banks participated. Dufil is also extremely pleased to have had foreign investor participation in the bond issue as this is a testament to the Company’s adherence to international best practices and standards, which the Company employs in all aspects of its business operations,” he said.
“We are very pleased to have worked with our advisors, Stanbic IBTC Capital as Lead Issuing House, and FBN Capital as Co-Issuing House and other professional parties. These incude Nnenna Ejekam & Associates, G.Elias & Co., Udo Udoma & Bello Osagie, Deloitte, ARM Trustees, Stanbic IBTC Trustees, GCR & Co., First Registrars, and PKF Professional Service, to achieve this milestone in our history.”
The Executive Director and Head, Debt Capital Markets, Stanbic IBTC Capital, Obby Bentsi-Enchil, said continued innovation in the origination, structuring, and issuance of debt securities would help grow the Nigerian capital markets.
“It is immensely rewarding to see more blue chip issuers emerge as frequent issuers of fixed income instruments, such as commercial paper and bonds, in the capital markets. Stanbic IBTC has tirelessly championed the resurgence of corporate debt issues in various formats, and we are exceptionally pleased to see these efforts yielding results,” she said.