Flour Mills of Nigeria lists N20bn Bonds On NSE, FMDQ | Dailytrust

Flour Mills of Nigeria lists N20bn Bonds On NSE, FMDQ

Flour Mills of Nigeria Plc has successfully registered a N70 billion bond issuance programme and issued N10,110,000,000 Series 1 and N10,000,000,000 Series 2 senior unsecured fixed rate bonds under the programme in a transaction that was strongly supported by the institutional investor community and oversubscribed by 190 per cent within the price guidance.

The bonds were successfully listed on the floor of the Nigerian Stock Exchange (NSE) and on FMDQ OTC platform at the weekend.

The Series 1 bonds priced at 15.50 per cent for a tenor of three years with bullet repayment at maturity, whilst the Series 2 bonds priced at 16.00 per cent for a tenor of five years with a one-year moratorium on principal payment and an amortizing profile.

The proceeds of both issuances, amounting to N20,110,000,000 were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.

Notwithstanding declining market conditions with 5 year benchmark yields rising from record lows of 10.45 per cent at the start of the year to 15.45 per cent highs in September, the success of the transaction was largely due to the momentum created during very well attended investor roadshow meetings in Lagos and Abuja.

The company was able to leverage on its strong credit profile and investment grade ratings assigned by two leading, well-established rating agencies.

Commenting on the listing, Mr John Coumantaros, the Chairman of the Board of Directors of Flour Mills of Nigeria said: “Flour Mills of Nigeria is delighted to return to the capital market with such a successful outing especially with the level of interest shown by investors.

“The response from the market vindicates the company’s decision to have taken this additional step in diversifying our financing options.”

Mr. Paul Gbededo, the Group Managing Director, added that; “the transaction will help the Company achieve its strategic objective of sustaining its market leadership position with our foods and agro-allied businesses, whilst fostering our vision of Feeding the Nation, Everyday.”

Dear Reader,
Every day, we work hard to provide readers such as you with the most accurate, up-to-date, and comprehensive information. Quality journalism costs money. Today, we're asking that you support us to do more. Your support means that Daily Trust can keep offering journalism to everyone in the world. Sign up for as little as N1,000 to become a member. Learn more about our membership here

Bank transfers can be made to:
Zenith Bank
1017257739
Media Trust Ltd


Please send details of your bank transfer to the email or Whatsapp number below so that we can contact you.

If you have any questions, please let us know.

Inquiries:
Email: membership@dailytrust.com
Whatsapp: +234 806 990 3410