Promasidor plans to use fresh N5.6bn BoI loan on machinery, factory expansion others
Makers of leading beverage bands, Cowbell Milk, Onga and others, Promasidor Nigeria Limited said it had secured a N5.6bn credit from the Bank of Industry (BoI) to support its aggressive expansion programmes that will cut across machinery, value chain development and factory expansion.
Ahead of this financial year, the company had bought the massive premises of Daily Champion Newspapers seating close to its factory in Ilasamaja along Oshodi-Apapa Expressway to house the planned manufacturing expansion.
Explaining more, the Finance Director, Mr Per Kristensen, said the facility would be used for additional machinery, factory expansion and value chain development, which would create jobs for Nigerians and increase the company’s capacity to support the country’s economy.
He said the repayment of the loan was structured over a seven-year tenor, including a 12-month moratorium.
While noting that loan access was a vote of confidence in the company’s financial integrity, high credit rating and exceptional corporate governance practice, Kristensen averred that “The near single digit interest loan is guaranteed by First City Monument Bank Limited. You cannot compare this with any other commercial loan in the country. What this means is that Promasidor has the needed funds to pursue its growth in machinery, backward integration, production plants and create more jobs.”
“The loan comes with comfort because it is denominated in local currency. For the period of seven years, the only risk is the interest rate, which is minimal. We are going to repay in naira and the process is very transparent. We are excited about the development. It will give us additional opportunity to contribute to the growth of the country’s economy,” Kristensen added.
