Emzor Pharmaceutical Industries Limited (“Emzor” or “the Company”), the leading Nigerian pharmaceutical company, successfully launched its maiden ₦13.73 billion 5-year Fixed Rate Senior Unsecured Bond Issue due January 2026 under the Company’s ₦50.00 billion Bond Programme. The transaction represents Emzor’s debut bond issuance.
The offering was preceded by a comprehensive credit positioning and marketing exercise which enabled the successful issuance despite uncertain monetary policy and benchmark rate direction and the Christmas holidays. Following approval from the Securities and Exchange Commission, book building with respect to the transaction commenced during the Christmas holidays and closed on the 12th of January 2021. The bond saw solid interest from a diverse pool of institutional investors with Pension Funds (61%) and Asset Managers (31%) dominating the orderbook and final allocation. The issue was priced at a coupon rate of 10.00% per annum, highlighting Emzor’s strong investment-grade ratings- the Issuer and Issue were rated A- (stable outlook) and A (stable outlook) by GCR and DataPro, respectively.
The net proceeds of the bond will enable Emzor further expand its existing operations as well as to expand into several new lines, mainly at its new and ultra-modern manufacturing campus at Sagamu in Ogun State, whilst supplementing its working capital.
Speaking on the significance and success of the bond issue, Dr Stella Okoli, Group Managing Director of Emzor commented: “This first-time bond issuance is a fantastic achievement for Emzor and in our commitment to unlimited wellness for all by delivering quality medicines for all and affordable by all, a key part of our Wellocracy programme. This will help drive and accelerate our expansion plans, delivering strong growth and margin improvement. It is important that our industry in Nigeria and on the continent continue to increase capacity and
capability in order to reach the goal of self-sufficiency in pharmaceutical manufacturing, thereby reducing the dependency on imports. We recognise the efforts of the investor community ensuring the success of this bond issuance and commit to uphold their confidence in us as we deliver on our long-term growth strategy.”
Renaissance Capital acted as Lead Issuing House and Ratings Adviser, with Afrinvest as Joint Issuing House for Emzor’s bond issue.
Emzor is the leading Nigerian pharmaceutical company, established in 1984 by Dr. Stella Okoli. The principal activity of the Company is the manufacturing and distribution of high-quality pharmaceutical and healthcare products. The Company is the manufacturer of the widely known Emzor Paracetamol which is one of the leading brands of analgesics in Nigeria. From producing 4 products in 1987, the Company has grown its product base to over 200 products spread across 26 different categories including but not limited to analgesics, antimalarial, antibiotics, multivitamins, antitussives, antifungal, antihistamines and antihypertensives.
The Company serves its customers via over 160 distributors spread across over 25 countries in West Africa with a solid operational presence in Nigeria, Liberia and Sierra Leone. Emzor currently operates from 4 factories of which three sites are Aswani, Ajao and Richfield located in Lagos whilst the fourth factory is located in Sagamu, Ogun State.
The Company has strong relationships with international suppliers and technical partners, which has supported solid competitive positioning. Emzor has a diversified earnings profile supported by ongoing product innovation and an expanding retail footprint. For additional information on the Company, please visit www.emzorpharma.com