Proceeds from these bonds will be used to refinance the food giant’s short-term debt obligation as well as support its working capital.
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, Flour Mills of Nigeria Plc, Omoboyede Olusanya,said he was also delighted for the successful conclusion of the issuance of N29.89 billion Series 4 (Tranche A & B) bonds under the N70.00 billion bond issuance programmes.
According to him, the Bond’s listing coincided with the company’s 60th-anniversary celebration and was strongly supported by the institutional investor community .
“The proceeds of both bonds have been used entirely to refinance our existing commercial paper notes also successfully issued during the pandemic”, says Omoboyede.
Similarly, Abimbola Kasim, Ag Managing Director, FCMB Capital Markets Limited stated that FCMB Capital Markets appreciated the opportunity to act as the Lead Issuing House.
“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. Following this success, we expect Flour Mills and our other clients to continue to explore opportunities to raise funds from the Nigerian debt capital markets to diversify their funding sources.
“ As the economic impact of COVID-19 continues to crystallise and business organisations strive to rise above the ‘murky waters’, FMDQ Group remains steadfast in contributing towards the emergence of a resilient financial market in Nigeria., he said.
According to the Group, as with previous bonds issued under the programme and with all other securities listed, quoted and traded on the FMDQ Exchange platform, the Flour Mills bonds shall be availed total market visibility through FMDQ Exchange’s website and systems; transparency through their inclusion in the FMDQ Daily Quotations List; governance and continuous information disclosure to protect investor interest; amongst other benefits derived from the preferred admission to FMDQ Exchange.
“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 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 to meet their business expansion/working capital needs. The critical role which debt markets play in facilitating sustainable growth and development cannot be overemphasized. The Nigeria debt capital market (DCM) 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” the FMDQ Group said.