Dufil Prima Foods Plc the makers of one the most popular Nigerian food staples Indomie Noodles today the of November, 2017 successfully listed its Series 1 ₦10.00bn of ₦40.00bn bonds issue following the approval of the board of listings, markets & technology committee of the Financial Market Dealers’ Square popularly known as FMDQ
Present to witness the listing ceremony were key representatives of Dufil Prima Foods Plc, Issuer of the Bonds, Stanbic IBTC Capital Limited, who happens to be sponsor of the issue and registered member of FMDQ, as well as representatives of FBN Merchant Bank Limited, Stanbic IBTC Trustees Limited, ARM Trustees Limited, G.Elias & Co., Udo Udoma & Bello Osagie and Nnena Ejekam Associates
Madhukar Khetan, the Chief Operating Officer of Dufil Prima Foods Plc in a statement during the listing ceremony said “We at Dufil Prima Foods PLC are very proud to have our inaugural issuance under the Bond Programme listed on FMDQ OTC Securities Exchange. This key milestone continues to outline Dufil’s commitment to entrenching the domestic capital market as an integral part of our corporate funding strategy, beyond the establishment and issuance of Notes under our Commercial Paper Programme. This initiative speaks to the very core of our beliefs in being relevant in our local markets and that can be closely correlated and identified with our products and services which are very well recognised on a national level.”
Of late, Tier 1 Companies who are eligible to source for non collateralized debts are shifting from tenored bank loans that are mostly short term, high interest facilities usually not so sustainable in a volatile and highly unpredictable business environment like Nigeria, as records show that Tier 1 Nigerian Banks are more interested in fixing lending pool in open market instruments like treasury bills that guarantees a fixed return and presents zero risk risk to the loan book of their bank.
In a statement by Kobby Bentsi Enchill, the Head of Debt Capital Markets of Stanbic IBTC Capital Limited, he affirmed that “We are pleased to have supported Dufil Prima Foods PLC on their debut bond issuance in the domestic capital market, a key initiative for meeting their long-term funding objectives. This issuance, which was 100% subscribed, highlights the confidence placed by the market in Dufil’s brand and its strategic intent. FMDQ has made significant strides with enhancing liquidity in the domestic capital market and the listing of the ₦10 billion Series I Bonds by Dufil further provides a competitive investment option for fund managers looking for sustainable returns over and above comparable treasury benchmarks. We are excited to continue a fruitful partnership with FMDQ and top household names such as Dufil.”
FMDQ set up to deepen the domestic debt capital markets and liquidity of the OTC foreign exchange has achieved great strides in such a short time. In a statement by the COO Bola ‘Koko’ Onadeko, on the event of the Fourth Anniversary of the Organization, he says “the OTC Exchange shall continue to innovate and provide efficient services and infrastructure, as may be necessary, to support issuers and investors, towards achieving an operationally excellent and competitive DCM. Through consistent collaboration with its stakeholders, FMDQ shall continue to further deepen and effectively position the Nigerian DCM for growth, and invariably contribute to the growth of the economy at large.”