Flour Mills of Nigeria Plc, Nigeria’s largest flour-milling company, at the weekend listed two bonds on the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities Exchange.
Flour Mills’ N10.11 billion, three-year, 15.50 per cent fixed rate senior unsecured bond due 2021 and N10 billion five-year, 16 per cent fixed rate senior unsecured bond due 2023 were admitted to the NSE and FMDQ. The bonds were issued under the company’s N70 billion bond issuance programme.
The bond issues were strongly supported by the institutional investors and oversubscribed by 190 per cent within the price guidance. The proceeds of both issuances were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.
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,” Coumantaros said.
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.