Flour Mills floats bond on FMDQ
FMDQ Securities Exchange Limited has approved the listing of the Flour Mills of Nigeria Plc’s N4.89bn Series 4 tranche A and N25bn Series 4 tranche B Fixed Rate Bonds under its N70bn Bond Issuance Programme on its platform.
The FMDQ in a statement said the Nigerian economic landscape and business environment has continued to witness disruptions as occasioned by the COVID-19 pandemic with attendant concerns of a prevailing second wave despite global vaccination efforts and restrictive guidelines put in place by governments and advisory bodies.
The statement said, “The situation has seen corporates across multiple sectors re-evaluate their financing strategies going into the new year by tapping the debt capital markets as a viable avenue to efficiently raise capital in order to meet their business expansion/working capital needs.
“The critical role which debt markets play in facilitating sustainable growth and development cannot be overemphasised.
“The Nigeria debt capital market plays an important role in the efficient mobilisation and allocation of resources in the economy and despite the impact of the current times, the market has continued to effectively support corporates looking to expand their business operations.”
It added, “It is in this regard that FMDQ Holdings in its capacity as a leading market organiser of the Nigerian DCM, amongst others, has continued to provide stakeholders in the Nigerian capital market with a credible and robust platform for capital access, risk management and transfer of value.
“As major effects of the pandemic, Nigeria has witnessed rapid inflation characterised by dwindling food security and reduced labour market participation.
“Flour Mills is strategically positioned to produce and supply products of superior quality and value to the market, thereby enriching the lives of consumers, customers, communities, employees, and all stakeholders.”
Group Managing Director/Chief Executive Officer, Mr Omoboyede Olusanya, Flour Mills of Nigeria Plc, said, “Flour Mills is delighted to have successfully concluded the issuance of N29.89bn Series 4 (Tranche A & B) bonds under the N70bn bond issuance programme.
“The bond, which coincided with our 60th anniversary celebration was strongly supported by the institutional investor community and corroborates our strategic objective of sustaining our market leadership position.
“The proceeds of both bonds have been used entirely to refinance our existing commercial paper notes also successfully issued during the pandemic.”
Also commenting on the listing, Abimbola Kasim, Ag Managing Director, FCMB Capital Markets Limited, stated “FCMB Capital Markets appreciates the opportunity given to us by the Board and Management of Flour Mills of Nigeria to act as the Lead Issuing House on its N29.89bn Series 4 Bond Issuance, being the final and largest Series under the N70bn Bond Issuance Programme registered in 2018.
“The success of this transaction speaks to Flour Mills’ impressive operational and financial performance, and an affirmation of this strength by investors in the bond who subscribed overwhelmingly during a low interest rate environment.”
He added that following the success, his firm expected Flour Mills and other clients to continue to explore opportunities to raise funds from the Nigerian debt capital markets to diversify their funding sources.