Fidson Healthcare N2bn 5-Year Bond Matures

By Modupe Gbadeyanka

The N2 billion five-year bond issued by Fidson Healthcare Plc in 2014 at a coupon rate of 15.5 percent has matured and subsequently delisted from the Nigerian Stock Exchange (NSE).

Business Post confirmed that the corporate debt instruments, numbering two million units at N1,000 each and sold under the N2 billion debt programme were delisted from the local bourse on Friday, November 8, 2019 after maturity.

In 2014, the leading healthcare firm in Nigeria approached the local capital market to raise N2 billion for debt refinancing and working capital, including funding the construction of a Biotech factory in Ota, Ogun State, which was completed in 2016.

Upon successful completion of this new manufacturing plant, Fidson completely moved its five existing product lines to the new facility to enhance operational efficiency, achieve greater economies of scale and better manage logistics.

The Biotech factory now has six production lines, including tablets, capsules, liquids, cream and ointments, dry powders and intravenous fluids (i.e. large and small volume parenterals, both of which are in high demand in Nigeria).

Business Post gathered that the N2 bond scheme, which was undersubscribed (as the firm eventually got only N1.5 billion), was secured in 2014 by an all asset debenture managed by ALM Consulting (the bond trustees), covering the mortgages on the company’s five properties (four in Ogun State, one in Lagos State) as well as other fixed assets.

It was also learned that Fidson, while issuing the bond five years ago, said it would pay the interest semi-annually in arrears (in May and November each year), with the principal to be redeemed by eight equal semi-annual instalments, following the expiration of a 12-month moratorium period.

Fidson is a locally owned pharmaceutical company, which started as a distributor of pharmaceutical products in 1995, but later ventured into production of its own brand of finished medicines in 1996.

Its product portfolio covers the treatment of chronic diseases, infections and malaria, as well as over-the-counter drugs and life style products (including nutraceuticals).