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