NIGERIA – Promasidor Nigeria Ltd (PNL), a food products distributor has obtained US$15.5 million from the Bank of Industry (BoI) on credit to support its growth strategy for its business, reports Beverage Industry news.

The funding would be used for factory expansion, value chain development and acquisition of additional machinery, all geared at increasing capacity, job creation and significant contribution to the economy.

Promasidor whose product portfolio includes brands such as Cowbell milk, Loya milk, Top tea and Onga seasoning said they will employ additional 500 people as a result of the credit.

According to a statement linked to the Financial Director Mr Per Kristensen, the loan structured over seven-year tenure including a 12-month moratorium was granted based on the company’s financial integrity, high credit rating and exceptional corporate governance practice.

“The business is expanding and we need a lot of capital to support that.

The injection of the BoI facility gives the management the needed stability and relief to continue to pursue the expansion plans.

A lot of expansion activities are ongoing at the factory, and we will continue to see more of that in the next 24 months,” noted the statement.

The company revealed plans to expand its different plants and develop new products, reiterating its interest to support business expansion, stimulate jobs and create social values.

“What this means is that Promasidor has the needed funds to pursue its growth in machinery, backward integration, production plants and create more jobs.

“The loan comes with comfort because it is denominated in local currency. For the period of seven years, the only risk is the interest rate, which is minimal.

We are going to repay in Naira and the process is very transparent.

We are excited about the development, it will give us additional opportunity to contribute to the growth of the country’s economy,” added the company.

Speaking on the matter, Promasidor Head of Legal and Corporate Communications, Mr. Andrew Enahoro said the company was looking at other multiplier effects of its spending and that of the employees to improve the economy and create jobs.