Dufil Prima Food raises $131 million to increase capital base

Jul 28, 2017

Dufil Prima Food Plc COO Madhukar Khetan
Dufil Prima Food Plc, the Nigerian consumer goods company, announced plans to raise $131 million to face increasing economic pressure in the country.

In order to face the challenges posed by the two-year economic recession in Nigeria, Dufil Prima Food Plc has announced plans to raise N40 billion (approximately $131 million) from the local debt market. The company has hired South African Standard Bank to organize the deal, through its representative in Nigeria, Stanbic ITC Capital.

According to COO Madhukar Khetan, the debt issue has already been green-lighted by the Securities and Exchange Commission but its final conditions will still be defined by present market conditions. Inflation, specifically, stood at 17.24% in May has gone down to 16.1% last month. However, the Central Bank of Nigeria has already forecasted a slight increase for August, to 16.2%. This has kept yields quite high and has affected markets and companies. Especially those enterprises desiring to resort to debt-raising are unsure of the best timings to do so. Dufil Prima is in fairly good conditions to do so, after its was awarded a national debt rating of A- with a stable outlook by Global Credit Ratings Co. earlier this year just last month.

Dufil Prima Food Plc is a Nigerian consumer goods manufacturer, part of the Dufil Group, a partnership between Tolaram Group of Singapore and the Salim Group of Indonesia. A household name in the Nigerian food industry mostly due to its Indomie Instant Noodles, the company started twenty-two years ago is a direct competitor of the Dangote Group. Today, Dufil Prima is one of the most successful food companies in West Africa and the largest pasta maker in the region.

 

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