Emzor Pharmaceuticals lists N13.73bn Series 1 fixed-rate bond on the NGX Platform

Charles Abuede

Emzor Pharmaceutical Industries Limited, a private indigenous pharmaceutical manufacturing group into high-quality pharmaceutical products and medical consumables, has announced the listing of its N13.73 billion Series 1 senior unsecured fixed-rate bond due 2026 on the Nigerian Exchange Limited under the company’s N50 billion debt issuance programme for a 5-year tenor at a coupon rate of 10 per cent per annum. The pharmaceutical company revealed in disclosure on the Nigerian Exchange Group.

According to the disclosure on Wednesday, Emzor stated that the net proceeds of the bonds will be used to purchase Notes issued by Emzor Pharmaceutical Industries Limited pursuant to the Master Notes Purchase Agreement (MNPA); as 100 per cent of the net proceeds will be used to purchase the Notes within one month of completing the bond issuance.

The leading medical consumables manufacturer in Nigeria was for the first time able to seek financing from the domestic debt capital markets from which it raised 5 years financing in local currency using a corporate bond issued to the general public while the Sponsor will apply the net proceeds for general purposes or as specifically stated in the Final Terms of the Notes.

According to Emzor Pharmaceuticals Limited, “The Issuer is a special purpose vehicle set up to finance the Sponsor’s Emzor Pharmaceutical Industries Limited) funding requirements, by issuing Bonds to the general public. Proceeds of such issuance will be used by the Issuer to finance the purchase of notes and other debt securities issued by the Sponsor to the Issuer as may be agreed from time to time in accordance with the terms of the Master Notes Purchase Agreement (the “MNPA”) between the Issuer, the Sponsor and the Trustee/Agent dated on or around the date of this Shelf Prospectus.”

Nevertheless, the N13.73 billion Series 1 Unsecured Bonds was accorded an ‘A-’ credit rating by Global Credit Rating Co. and were undersubscribed by 8.47 per cent, with the intended capital raise valued at N15 billion. Meanwhile, the issuing houses have been announced by the company to be Renaissance Securities (Nigeria) Limited as the leading issuing house and Afrinvest (West Africa) Limited as the joint issuing house.