Emzor issues US$19.8M bond to finance antimalarial API manufacturing in Nigeria
The issuance forms part of Emzor’s broader US$29.6 million bond programme, which is designed to provide capital for the company’s growth and operational needs.
NIGERIA—Nigerian pharmaceutical company Emzor Pharmaceutical Industries Ltd, a portfolio company of Verod, has listed a US$19.8 million Series 1 Fixed Rate Bond on the FMDQ Group Exchange to support its expansion and strengthen local pharmaceutical manufacturing capacity.
The five-year bond carries a 19.00% coupon and was issued through Emzor Pharma Funding SPV PLC, a special-purpose vehicle established to facilitate the company’s debt financing.
The issuance forms part of Emzor’s broader US$29.6 million bond programme, which is designed to provide capital for the company’s growth and operational needs.
Funding working capital and manufacturing expansion
According to the company, proceeds from the bond will support working capital requirements while helping finance the completion of a full-scale antimalarial Active Pharmaceutical Ingredient (API) manufacturing facility in Sagamu, Ogun State.
The facility is expected to manufacture APIs used in the production of antimalarial medicines, allowing Emzor to produce a critical pharmaceutical input locally rather than relying heavily on imports.
Once completed, the project will represent a major expansion of Nigeria’s domestic pharmaceutical manufacturing capabilities.
Emzor said the investment will support its strategy of increasing local production across the pharmaceutical value chain.
By manufacturing APIs within Nigeria, the company aims to strengthen the supply of essential pharmaceutical inputs while reducing exposure to disruptions in international supply chains.
Bond issuance supports local API production
Renaissance Capital Africa served as the lead sponsor for the bond issuance. The transaction provides Emzor with long-term financing as it advances the development of its API manufacturing operations.
The investment comes as pharmaceutical manufacturers across Africa seek to increase local production of medicines and their key ingredients.
Many African countries continue to depend on imported APIs and other pharmaceutical materials, exposing manufacturers to international price fluctuations, shipping disruptions, and supply shortages.
For Emzor, establishing API production in Nigeria is intended to address part of this dependence by bringing the manufacture of key pharmaceutical ingredients closer to the markets where finished medicines are produced and consumed.
The Sagamu facility will therefore form an important part of Emzor’s manufacturing infrastructure as the company expands its production capabilities.
The project is also positioned to support greater integration of pharmaceutical manufacturing within West Africa by increasing the availability of locally produced APIs.
Emzor’s latest bond listing follows its broader efforts to secure financing for business expansion while strengthening its position in Nigeria’s pharmaceutical sector.
The company will use the capital raised through the debt programme for both immediate working capital needs and the continued development of its manufacturing infrastructure.
Through the project, Emzor is pursuing greater control over the supply of pharmaceutical raw materials while expanding its capacity to manufacture products for the Nigerian and wider West African markets.
Be the first to leave a comment