• Tuesday, July 23, 2024
businessday logo

BusinessDay

Emzor completes debut N13.73bn 5-year corporate bond

Emzor completes debut N13.73bn 5-year corporate bond

Emzor Pharmaceutical Industries Limited has successfully launched its maiden N13.73 billion 5-year fixed-rate senior unsecured bond Issue due January 2026 under the company’s N50 billion bond Programme.

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 percent and Asset Manager’s 31 percent dominating the orderbook and final allocation.

The issue was priced at a coupon rate of 10.00% per annum, highlighting Emzor Strong investment- grade ratings- the Issuer and Issue were rated A- ( stable outlook) and A (stable outlook) by GCR and Datapro, respectively.

Read Also: Nigeria is hooked on CBN borrowing. Here is why it wont be easy to break the habit

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 it’s working capital.

Speaking on the significance and success of the bond issue, 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.