In a move that highlights the tightening credit conditions within Nigeria’s real sector, Emzor Pharmaceutical Industries Limited has refinanced its ₦13.7 billion Series 1 Fixed Rate Senior Unsecured Bond using short-term bridge financing.
While the move ensures the immediate redemption of the bondholders, analysts warn it has significantly increased the company’s liquidity pressure by shortening its debt maturity profile.
“We have maintained the negative rating watch on Emzor’s ratings despite the full settlement of its NGN13.729Bn Series 1 Senior Unsecured Bonds (Series 1 Bonds), which matured on 20 January 2026.” analysts at GCR Ratings said.
“This is because the Series 1 Bonds were settled through short-term bridge finance facilities obtained from several financial institutions. Accordingly, short term liquidity pressure remains, although the group indicated that plans to refinance the short-term financing with bond issuance is at advanced stage.”
Current liquidity sources for Emzor comprise a cash balance of N1.8 billion as of 30 September 2025 and projected operating cash flows of N6.3 billion. However, high capital spending is expected due to ongoing capacity expansion.
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