FMDQ approves Flour Mills’ bonds listing

FMDQ Securities Exchange Limited has announced the approval of the listing of the Flour Mills of Nigeria Plc N4.89 billion Series 4 Tranche A and N25.00 billion Series 4 Tranche B Fixed Rate Bonds under its N70.00 billion Bond Issuance Programme on its platform.

The Exchange, in a statement on Wednesday, quoted the Group Managing Director/Chief Executive Officer, Flour Mills of Nigeria, Omoboyede Olusanya, as saying, “Flour Mills of Nigeria Plc is delighted to have successfully concluded the issuance of N29.89 billion Series 4 (Tranche A & B) bonds under the N70.00 billion bond issuance programme.

“The bond, which coincided with our 60th anniversary celebration, was strongly supported by the institutional investor community and corroborates our strategic objective of sustaining our market leadership position whilst backwardly integrating to increase the use of locally sourced materials to develop and produce unique consumer products in alignment with our mission of ‘Feeding the Nation, Everyday’.”

He said the proceeds of both bonds had been used entirely to refinance our existing commercial paper notes also successfully issued during the pandemic.

The acting Managing Director, FCMB Capital Markets Limited, Abimbola Kasim, said, “FCMB Capital Markets appreciates the opportunity given to us by the board and management of Flour Mills of Nigeria to act as the lead issuing house on its N29.89 billion Series 4 Bond Issuance, being the final and largest Series under the N70 billion Bond Issuance Programme registered in 2018. 

“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.”