Dufil Prima Foods Limited has opened the subscription window for its October 2024 corporate bond, providing investors with a new opportunity to invest in its debt securities.
The offer includes a commercial paper maturing on April 16, 2025, with an implied yield of 27.00%, priced at a 23.8306% discount rate to its face value.
According to the announcement, the subscription period spans five days, commencing on October 10, 2024, and closing on October 17, 2024.
During this timeframe, interested investors can apply for a stake in the bond offer, which is aimed at financing the company’s short-term capital needs and supporting general corporate purposes.
This debt issuance has a program size of N50 billion, with an available headroom of N29.05 billion, allowing Dufil to issue additional bonds if necessary. Also, investors can make a minimum subscription of N5 million, with subsequent investments accepted in increments of N1,000.
The bond features a 180-day tenor, with its subscription window remaining open until October 17, 2024.
Purpose of the Bonds
Dufil Prima Foods intends to utilize the proceeds from the bond issuance to meet its short-term capital needs and support a range of broader corporate objectives.
This strategic financial move is being managed by Stanbic IBTC Capital Limited and Rand Merchant Bank Limited, who are serving as the arrangers to ensure a smooth and professional process.
The bond has been awarded a credit rating of A- by both Global Credit Rating (GCR) and Datapro, organizations widely recognized for their in-depth expertise in financial and economic analysis.
It is important to note that the bond will be subject to applicable taxes unless specific exemptions are provided, 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 private equity.
- The company’s journey began in 1996 when its subsidiary, De United Foods Industries Limited (DUFIL), established the first instant noodles manufacturing plant in Nigeria at Ota, Ogun State—then the largest of its kind in Africa.
- In 2001, DUFIL Prima Foods Ltd was incorporated as a private limited liability company in Choba, Port Harcourt, Rivers State. Following a restructuring exercise, the company transitioned into a public limited company in 2008, becoming the holding entity for the group.
- Dufil was subsequently listed on the NASD OTC on January 20, 2015, at an admission price of N0.00, with a nominal share value of 0.50.
- Despite being classified as a “pink” company on the NASD OTC due to a lack of current audited financial statements, Dufil Prima Foods maintains a market capitalization of approximately N60 billion.
