Dufil Prima Foods launches October 2024 corporate bond subscription, reveals yield and maturity date

Dufil Prima Foods Limited has opened the subscription window for its October 2024 corporate bond, offering investors a new opportunity to invest in its debt securities.

The offering includes commercial paper due April 16, 2025, with an implied yield of 27.00%, at a discount of 23.8306% to par.

According to the announcement, the subscription period spans five days, starting on October 10, 2024 and ending on October 17, 2024.

During this time period, interested investors can apply to participate in the bond offering, which aims to finance the company’s short-term capital needs and support general social purposes.

This debt issuance has a program size of N50 billion, with an available margin of N29.05 billion, allowing Dufil to issue additional bonds if needed. Also, investors can make a minimum subscription of N5 million, with subsequent investments accepted in increments of N1,000.

The bond has a term of 180 days, with its subscription window open until October 17, 2024.

Purpose of the Bonds

Dufil Prima Foods intends to use the proceeds of the bond issue to meet its short-term capital needs and to support a number of broader corporate objectives.

This strategic financial move is being managed by Stanbic IBTC Capital Limited and Rand Merchant Bank Limited, who are acting as arrangers to ensure a smooth and professional process.

The bond has received an A- credit rating from both Global Credit Rating (GCR) and Datapro, organizations widely recognized for their deep expertise in financial and economic analysis.

It is important to note that the deposit will be subject to applicable taxes unless specific exemptions are available as detailed in the official announcement.

About Dufil Prima Foods Limited

Dufil Prima Foods Limited, a prominent player in the consumer goods sector, is listed on the NASD OTC market as a private equity.

• The company’s journey began in 1996 when its subsidiary, De United Foods Industries Limited (DUFIL), established Nigeria’s first instant noodle manufacturing plant in Ota, Ogun State, then the largest of this type in Africa.
• In 2001, DUFIL Prima Foods Ltd was incorporated as a limited liability company in Choba, Port Harcourt, Rivers State. After a restructuring exercise, in 2008 the company became a public limited company, becoming the group’s holding entity.
• Dufil was subsequently listed on the NASD OTC on January 20, 2015, at an admission price of N0.00, with a par value of 0.50 per share.
• Despite being classified as a “pink” company on the NASD OTC due to lack of current audited financial statements, Dufil Prima Foods maintains a market capitalization of approximately N60 billion.

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