A Leading Agro allied food business company in Nigeria, Flour Mills (FMN) Plc has listed fresh N29.8 billion on The Nigerian Stock Exchange (NSE).
The bond was issued to optimize the company’s capital structure, reduce financing cost and provide capital injection for growth and expansion.
The company’s Group Managing Director, Mr. Omoboyede Olusanya, at the listing of the Tranche A and Tranche B bonds valued at N29.8 billion Thursday on The NSE said the Pan-Africa distribution issued these bonds under its N70 billion Bond Issuance Programme.
Olusanya stressed that the company would continue to explore funding opportunities inherent in the capital market to ensure business growth and continuity.
“The food and the agro-allied company which has remained Nigeria’s largest and oldest integrated agro-allied business with a broad profile and robust Pan-Africa distribution issued these bonds under its N70 billion Bond Issuance Programme”, Olusanya said.
He explained that the credit rating as well as operational financing of the Group, had improved considerably.
According to him, the bonds floated by Flour Mills would help to strengthen the company’s capital base and provide the needed working capital required by the Company.
“ Flour Mills Group would continue to deleverage and replace short term financing with longer-tenured and lower price funding to optimize capital structure and reduce financing cost.
We shall continue to explore opportunities to raise fundings via the capital market as this enables the company to diversify its funding sources and continue to play a role in the capital market as a significant player in it.”, says Olusanya.