Emzor raises N26.7bn bond to boost drug production

Emzor Pharma Funding SPV Plc has raised N26.70bn through a five-year fixed-rate bond listed on the FMDQ Exchange as the indigenous pharmaceutical company moves to expand its manufacturing capacity and strengthen local drug production.

The Series 1 bond, which carries a 19 per cent interest rate, was issued under the company’s N40bn Bond Issuance Programme. The listing was approved by the Board Listings and Markets Committee of FMDQ Exchange.

The funds will be used to meet working capital requirements and finance the expansion of Emzor Pharmaceutical Industries Limited’s manufacturing operations.

A significant portion of the financing will support the completion of Africa’s first full-scale antimalarial Active Pharmaceutical Ingredient manufacturing plant, according to the company.

The project is expected to increase domestic production of pharmaceutical inputs and reduce Nigeria’s reliance on imported APIs, a key component in the manufacture of medicines.

Emzor Pharma Funding SPV Plc was established to raise capital for its sponsor, Emzor Pharmaceutical Industries Limited, a wholly indigenous Nigerian pharmaceutical manufacturer with operations serving both domestic and regional markets.

Emzor Chairman, Emeka Okoli, described the bond as an important step in the company’s drive to expand pharmaceutical manufacturing in Nigeria.

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He said the N26.70bn issuance was the company’s second domestic bond and noted that the strong investor response and oversubscription demonstrated confidence in Emzor’s financial position and growth strategy.

Okoli said the completion of the antimalarial API facility would mark a major development for Nigeria’s pharmaceutical industry by strengthening domestic manufacturing and lowering dependence on imported pharmaceutical ingredients.

The transaction was driven by Renaissance Securities (Nigeria) Limited as lead sponsor, with FirstCap Limited and UCML Capital Limited serving as co-sponsors.

The Chief Executive Officer of Renaissance Capital Africa, Samuel Sule, said the firm was pleased to lead the issuance, describing it as an important transaction aimed at strengthening Nigeria’s pharmaceutical manufacturing base.

He said the funding would support the development of the API facility and contribute to national health security by increasing domestic capacity to produce critical pharmaceutical inputs.

Group Chief Operating Officer of FMDQ Group Plc, Tumi Sekoni, said the listing demonstrated the ability of Nigeria’s debt capital market to connect indigenous businesses with long-term funding.

According to her, financing local pharmaceutical manufacturing through the capital market could help strengthen the healthcare value chain while supporting the development of a deeper and more resilient financial market.