Dufil Prima Foods raises US$28m in rights issue

NIGERIA – Dufil Prima Foods Plc has successfully raised N10 billion (US$27.7m) under its N40 billion (US$110.8m) issuance 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 Series 1 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.

According to the company, the bond will be used to refinance existing debt obligations, and finance partial capital expenditure plans.

Dufil said it is very pleased to have taken this additional step in cultivating its relationship with the capital markets focused institutional investor base.

This transaction represents Dufil’s debut bond issuance.

The company has previously launched several short-term commercial paper (CP) issuances under its N30 billion CP Programme.

All the funds raised under the series have matured and been repaid.

The Chief Operating Officer for Dufil, Mr. Madhukar Khetan said: “Dufil as a company operating in the Nigerian market for over two decades 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.”

He added that the company 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 it employs in all aspects of its business operations.

Also commenting, Executive Director and Head of Debt Capital Markets at Stanbic IBTC Capital, Kobby Bentsi-Enchill, said: “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.

Over the last few years, 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, and more importantly for the opportunity to assist our valued clients, such as Dufil Prima Foods Plc to achieve their financing objectives.

Continued innovation in the origination, structuring and issuance of debt securities can only be for the ultimate good and growth of the Nigerian capital markets.”

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