(Ecofin Agency) - Dufil Prima Food Plc has on Monday revealed plans to raise N40 billion ($131 million) from the local debt market to boost its capital base.

According to the Chief Operating Officer of Dufil, Madhukar Khetan, although the issue has been approved by the Securities and Exchange Commission, the timing of the sale is still subject to market conditions. Nigeria is currently in its second-year of recession which has affected markets and businesses. Due to this, more than a few companies in the West African country, have announced plans to exploit the debt markets this year, but local inflation which is still above 16% have kept bond yields high, thereby making many firms unsure of when to issue debt.

The pasta maker, however, said it has hired Stanbic IBTC Capital, the local unit of South Africa's Standard Bank to organize the debt.

Dufil Prima Foods Plc, is one of the fast growing consumer goods companies in Nigeria with eight processing locations across the nation. The private company which was established more than two decades ago, has grown to become the largest pasta maker in West Africa. It competes with the likes of Dangote Flourmill, Flour Mills of Nigeria and Honeywell Flour Mills.

Anita Fatunji