- Advertisement -spot_img
34.3 C
HomeTop NewsNigeria's Dufil Prima Foods to raise N30 bln in 182, 268-day commercial...

Nigeria’s Dufil Prima Foods to raise N30 bln in 182, 268-day commercial paper

- Advertisement -spot_img

By Samuel Bankole


Nigeria’s Dufil Prima Foods Plc, maker of indomie noodles has begun offering N30 billion in 182-day and 268-day tenor Commercial Paper (CP), according to a financial advisor to the issue.

The company is issuing the debt note under its series 3 and 4 programme.

The offer, which opened on Friday, February 19, is expected to by February 26 with a settlement date slated for March 02, 2021.

READ ALSO: Nigeria hopes to receive four million AstraZeneca Covid-19 vaccines soon~PTF

The financial advisor said the 182-day and 268-day tenor Commercial Papers are being issued at discount rates of 3.9218 percent and 4.8229 percent with implied yields of 4.0 percent and 5.0 percent, respectively.

The issuer is assigned A- rating by GCR and DataPro. Previously, Dufil had issued N37 billion in Commercial Papers between 2016 and 2020.

Commercial paper, also called CP, is a short-term debt instrument issued by companies to raise funds generally for a time period up to one year.

They are typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.

Many Nigerian companies have resorted to issuing Commercial Paper since last year when yields on fixed income fell below the Central Bank of Nigeria (CBN) benchmark rate.


Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img