The Board of Directors of Honeywell Flour Mills has announced plans to initiate a Commercial Paper Program and a Medium-Term Note Program with a view to restructuring the company’s debt profile.
According to the information contained in the notification issued by the management of the flour milling company, this approval was given at the Board’s extraordinary meeting which held on the 16th of March 2021.
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The Commercial paper will provide the flour milling business with the opportunity of refinancing and restructuring the company’s debt profile, as the company moves into a more aggressive phase of growth in its operation.
This move makes Honeywell the third flour miller behind Flour Mills Nigeria Plc and Dufil Prima Ltd to take to the Nigerian Capital Market to bridge funding gaps and restructure the existing debt profile.
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What you should know
- Honeywell plans to refinance some of its outstanding debts through its Commercial Paper programme, which will help the famed producer of Semolina to take advantage of the low-interest environment to pay back its existing high-interest short term loan.
- The Commercial Paper Program and the Medium-term Note Program when issued will also help Honeywell in meeting its growing working capital requirements, as well as other funding needs required to expand its operation.
- This move also reflects confidence in the Nigerian Debt Capital Market to provide necessary funds for corporate entities, in a bid to bridge the capital shortfall occasioned by the COVID-19 pandemic.
