Flour Mills Nigeria has closed its application list to raise about 12 billion naira in the 8th series of its 100 billion naira Commercial Paper programme.
The company offered the 270-day commercial paper with an effective yield of 13.10 percent and a discount rate of 11.9427 percent.
The commercial paper, which will be issued on Thursday, May 30, 2019, has a minimum subscription of 5 million naira. Thereafter, it would be issued in multiples of 1,000 naira
The company said it will use the net proceeds from the commercial paper issuance to support its short-term funding.
A Commercial Paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories as well as meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days. Commercial paper is usually issued at a discount from face value and reflects prevailing market interest rates.
Flour Mills Nigeria was incorporated in 1960 and is headquartered in Lagos. The company engages in the flour milling business in Nigeria and internationally. It operates through Agro Allied, Food, Packaging, Port Operation and Logistics, and Real Estates segments.