NIGERIA – Dufil Prima Foods Plc, Nigeria’s pioneer, and largest producer of instant noodles has announced the issuance of its N30 billion (US$78.7m) Series 3 & 4 Commercial Paper Notes under its Commercial Paper Issuance Programme.
According to reports by Nairametrics, the maker of Indomie brand is seeking to raise N30 billion (US$78.7m) through its Series 3 notes, and an additional N30 billion from its Series 4 notes.
The offer for the N30 billion (US$78.7m) Series 3 & 4 Commercial Paper will be officially issued on the 2nd of March 2021, and subsequently listed on the FMDQ trading platform.
However, it has already been flagged open for interested participant and the offer is expected to close by the 26th of February.
The Series 3 CP comes with a 182-day tenor, an implied yield of 4%, and it is expected to mature on 31st August 2021. It will be closed from 24 August 2021 until the Maturity Date.
While the Series 4 CP has a 262-day tenor and a maturity date pegged at 25th of November 2021, coming with a 5% implied yield range. The register for the Series 4 paper will be closed from 18 November 2021 until the maturity date.
Dufil has issued an aggregate amount of US$97m in Commercial Papers between 2016 and 2020
The Nigerian leader in fast-moving consumer goods segment is currently operating at a growth phase, requiring funding to carry out its daily operations and refinance some of its outstanding debts, thus launched the fundraising round.
The company is no stranger to the debt capital markets, having issued an aggregate amount of N37 billion (US$97m) in CPs between 2016 and 2020, indicates Proshare.
The Issuer continues to dominate the noodle segment by further entrenching its growth strategies centred around a backward integration model and strong distribution network, while also engaging in the production of other complimentary products such as snacks, flour, pasta, seasoning, oil and flexible packaging from strategically located factories across Nigeria and Ghana.
The company operates six subsidiaries – namely: De united Foods Industries Limited (Nigeria & Ghana), Northern Noodles Limited, Pure Flour Mills Limited, Insignia Print Technology LFTZ Enterprise and Raffles Oil LFTZ Enterprise.
Meanwhile its Ghanaian unit recently acquired the noodle division of manufacturer of Yum-mie Noodles brand, Blow Chem Industries.
Also, the company received a major boost with the inauguration of a US$20 million indomie noodles and spaghetti manufacturing factory under the One District One Factory (1D1F).
The factory, situated in the Tema West Municipality has a production capacity of 30,000 tonnes of indomie noodles and 8,000 tonnes of spaghetti annually.
The fully automated factory came with carton caser machine which undertakes automatic packaging of the packs as well as a seasoning dispenser machine that seasons the noodles before being wrapped by the caser machine.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
