Key Highlights
- The FMDQ Securities Exchange Limited (FMDQ Exchange) has admitted Flour Mills of Nigeria Plc N13.33 billion Series 1 and N51.64 billion Series 2 Commercial Papers on its platform.
- The joint quotation is aimed at harnessing alternative funding sources to meet some of the group’s working and other capital requirements.
- The Nigerian CP market has remained a viable funding option for corporate entities seeking to finance their short-term expenditures, including working capital shortfalls.
The FMDQ Securities Exchange Limited (FMDQ Exchange) has announced the quotation of the Flour Mills of Nigeria Plc N13.33 billion Series 1 and N51.64 billion Series 2 Commercial Papers under its N200.00 billion CP Issuance Programme on the Exchange’s platform.
This was contained in a statement made available to newsmen and obtained by the Nairmetrics by the FMDQ.
Speaking on the issuance of the CPs, the Group Chief Financial Officer, of Flour Mills of Nigeria Plc, Mr. Anders Kristiansson, stated that Flour Mills of Nigeria Plc was pleased to announce the quotation of the N13.33 billion Series 1 and N51.64 billion Series 2 CPs on FMDQ Exchange.
Harnessing alternative funding sources to meet working capital: He noted that the joint quotation is aimed at harnessing alternative funding sources to meet some of the group’s working and other capital requirements as it seeks to deepen strategic, growth-consolidating investments across its value chains and in enabling capabilities that would unlock greater value for its stakeholders.
Also, the Head, of Capital Markets, FBNQuest Merchant Bank Limited, Mr. Oluseun Olatidoye, stated that FBNQuest Merchant Bank Limited (FBNQMB), the investment banking and asset management subsidiary of FBN Holdings Plc was pleased with its role as Lead Arranger on the registration of the Flour Mills N200.00 billion CP Programme and the subsequent quotation of the first two issuances under that Programme – N13.33 billion Series 1 and N51.64 billion Series 2.
- “FBNQMB has a strong reputation for helping indigenous corporates access the capital markets to meet their funding goals and we are pleased to have been able to assist Flour Mills in tapping into the debt markets to access funding to meet their working and other capital requirements,” he said.
What you should know
Flour Mills of Nigeria Plc is a Nigerian food and agro-allied company which evolved from a limited liability company to a publicly traded company, with a vertically integrated supply chain of food, agro-allied, logistics, and support services businesses. It is involved in the production of a wide range of food products, including flour, pasta, noodles, and ball foods.
The proceeds from the quotation of these CPs, which are sponsored by FBNQuest Merchant Bank Limited (Lead Sponsor), Chapel Hill Denham Advisory Limited, FCMB Capital Markets Limited, and United Capital PLC (Co-Sponsors) – all Registration Member (Quotations) of the Exchange, will be utilized by the Issuer to support its short-term funding requirements.
The Nigerian CP market has remained a viable funding option for corporate entities seeking to finance their short-term expenditures, including working capital shortfalls.