As part of its expansion plans, Promasidor Nigeria Limited (PNL) has secured a N5.6 billion loan facility from the Bank of Industry (BoI). This was confirmed by the company’s Finance Director, Per Kristensen; which he also said will accelerate the company’s growth.
According to Kristensen, the BoI loan would be used for additional machinery, and factory expansion which would create jobs for Nigerians and positively impact on the country’s economy.
The repayment of the loan was structured over a seven-year tenor, including a 12-month moratorium.
In a similar vein, the company had concluded plans in partnership with IFC, a member of the World Bank Group, to inject a $25 million loan into its production with a view to increase efficiency and expand its brand portfolio.
The former Managing Director, Promasidor Nigeria Limited, Olivier Thiry, explained that the capital injection would be used to support purchases of new machinery that will enable Promasidor to increase efficiency, expand production and develop new products, leading to greater availability of nutritious food products in Nigeria at competitive prices.
Promasidor Nigeria Limited produces and distributes food products. The products include: milk powder, non-carbonated soft drinks, tea, and coffee etc.
Formerly known as Wonder Foods Nigeria, Promasidor Nigeria distributes its products under the Cowbell brand name.
The company which operates as a subsidirary of Promasidor (South Africa) (Pty) Limited, was founded in 1993 and later changed name to what its now bears in February, 2003.
The Bank of Industry Limited (BOI) is Nigeria’s oldest, largest and most successful development financing institution. It was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank took off in 1964 with an authorized share capital of 2 million.
The International Finance Corporation (IFC), an organisation within the World Bank, which produced its pioneer Chief Executive held 75% of its equity along with a number of domestic and foreign private investors. Although the bank’s authorised share capital was initially set at N50 billion in the wake of NIDB’s reconstruction into BOI in 2001, it has been increased to 250 billion in order to put the bank in a better position to address the nation’s rising economic profile in line with its mandate.