Fund Raising: HillCrest Industries Opens Commercial Paper for Subscription at 27.81%
HillCrest Industries Limited has opened its commercial papers for subscription at 27.8128% coupon rate to investors in the local debt capital market.
HillCrest, an agro-processor company owns and operates a state-of the-art rice processing mill located in Offa, Kwara State, Nigeria.
Comercio Partners Capital Limited told investors in an email that the company is raising up to ₦3.5billion series 5 commercial paper issuance which is scheduled to close on 25 June 2024.
HillCrest Agro-Allied Industries Limited registered a ₦5 billion commercial paper Issuance programme with FMDQ Exchange in Q2 2023 and has since raised over ₦2.9 billion which it has successfully repaid.
As part of its strategic business funding initiative, HillCrest is seeking to raise debt capital through this commercial paper to support the company’s short-term working capital requirement.
HillCrest commenced operations in July 2012 as a separate unit under Dayntee Farms Limited before transitioning into a stand-alone entity in 2013 recording exponential growth over the years.
“The Company’s commitment to continuous growth since 2012 is evident in the consistent investment in its operational processes geared towards the increase of HillCrest’s milling and processing capacity as it recently increased its milling capacity from 10mt/hr to 26mt/hr by installing a new automated rice milling factory set.
“This has driven up its milling capacity from 2,000 (50 kg) bags per day to 5,200 (50 kg) bags per day even as it seeks to further leverage on its improved milling capacity in 2023”, Comerio said in the mail.
According to the investment firm, HillCrest is currently one of the largest producers of rice in Nigeria following the recent increase in its milling capacity to 187,200 MT per annum and plans to organically grow its milling capacity to 300,000 metric ton per annum by 2027.
“With a significant and exceptional workforce of about 194 employees, HillCrest has reinforced its position as a top rice milling company in Nigeria with over 10 years operational management experience.
“The company is also strategically positioned in the attractive food and agricultural sector supported by strong fundamentals with clear focus on scaling up in the Nigerian market”, Comercio Partner told investors.
HillCrest holds a long-term rating of “BBB” and a short-term rating of “A2” by DataPro. This rating is supported by the company’s well-established market presence, diverse product portfolio with continuously increasing demand, stable earnings, and an efficient cash flow management system, the email reads.
The company has continued to grow and expand its revenue principally from milling and production of rice. Revenue grew by 233% from ₦4.81 billion in 2019 to ₦19.57 billion in 2023.
Due to an efficient use of resources and significant reduction in HillCrest’s cost of sale by the management, the Company has sustainably increased its revenue thus resulting in an in increase in operating profit from ₦255 million to ₦312 million in the past three years. Comercio said.
HillCrest Agro-Allied Industries Limited has a solid track record of repayment and is committed to meeting the expectations of capital market stakeholders, which it considers integral to the growth of its business. UK’s Inflation Rate Declines to 2% in May
