Flour Mills Nigeria, FMN, Merger, Fertilizer

Nigeria’s largest flour-milling company, Flour Mills of Nigeria Plc, has listed two bonds on the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities Exchange.

The two bonds, a N10.11 billion, three-year, 15.50 percent fixed rate senior unsecured bond due 2021 and N10 billion five-year, 16 percent fixed rate senior unsecured bond due 2023 were admitted to the NSE and FMDQ. The two bonds were issued under its  N70 billion bond issuance programme.

The bond issues were strongly supported by the institutional investors and oversubscribed by 190 percent within the price guidance

According to the company, the proceeds of both issuances were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.

Group Managing Director, Flour Mills of Nigeria, Mr. Paul Gbededo, said the issues would help the company to achieve its strategic objective of sustaining its market leadership position with its foods and agro-allied businesses, while fostering its vision of feeding the nation everyday.

Commenting on the listing, Chairman, Flour Mills of Nigeria, Mr John Coumantaros said the company was delighted to return to the capital markets with such a successful outing especially with the level of interest shown by investors.

According to him, the response from the market vindicates the company’s decision to have taken this additional step in diversifying its financing options.

“We are very pleased to have worked with our advisors, Stanbic IBTC Capital Limited (“Stanbic BTC Capital”)as Lead Issuing House, along with ARM Securities Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, United Capital PLC and Zenith Capital Limited as Joint-Issuing Houses, on a highly successful transaction.”

Incorporated in 1960 and quoted on the Nigerian Stock Exchange in 1978. The company is one of Nigeria’s leading food and agro-allied companies. Flour Mills closed at N20.20 on Friday’s trading session at the Nigerian Stock Exchange, down 3.81%.

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