Flour Mills of Nigeria lists bonds worth over 20 billion naira on Nigerian Stock Exchange

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

The two bonds, which were issued under its 70 billion naira bond issuance programme, include a three-year 10.11 billion naira, 15.50 percent fixed rate senior unsecured bond due 2021 and a five-year 10 billion naira, 16 percent fixed rate senior unsecured bond due 2023. Both bonds were admitted to the NSE and FMDQ.

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

Flour Mills Nigeria revealed that the proceeds of both issuances were used by the company to refinance existing debt obligations and streamline its maturity profile.

Mr. Paul Gbededo, the Group Managing Director of Flour Mills of Nigeria noted that thanks to the level of interest shown by investors, the company was delighted to return to the capital markets with such a successful outing. He said the response from the market vindicates the company’s decision to have taken this additional step in diversifying its financing options.

According to Gbededo, “we are very pleased to have worked with our advisors, Stanbic IBTC Capital Limited, 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”.

Flour Mills of Nigeria Plc was incorporated in 1960 and listed on the Nigerian Stock Exchange in 1978. The company is one of Nigeria’s leading food and agro-allied companies.


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