UBA Visits Flour Mills Nigeria Plc

UBA Visits Flour Mills Nigeria Plc

 

 

Lagos; 14/12/2010: On the back of the successful conclusion of the N37.5bn Series 1 fixed rate senior unsecured bond issue for Flour Mills of Nigeria Plc, which has been described as the largest corporate bond issue in sub-Saharan Africa outside of South Africa, the Group Managing Director, United Bank for Africa Plc, Mr. Phillips Oduoza has said that corporate organisations in Africa should expect more of such deals as the bank intends to be a major player in the corporate sector in Africa
 
Speaking during an interactive session with the Group Managing Director, Flour Mills of Nigeria Plc, Dr. Emmanuel Ukpabi during a visit on Monday in Lagos, Mr Oduoza said “UBA is poised to play a strategic role in financial intermediation for our clients across Africa through the provision of value-added products and Services”. “We are immensely proud to have played a major role in bringing this transaction to the market. The size of the transaction, the tight pricing level of 12 per cent as well as the fact that it was oversubscribed demonstrates the confidence of investors in our capability as the issuer,” he said. This largest corporate bond ever raised in Nigeria, coming on the heels of the successful raising of N20bn by UBA Plc from the capital market recently, according to the UBA GMD, will help in deepening the Nigerian bond market.
 
Mr. Oduoza congratulated Flour Mills Nigeria Plc for a successful bond raising, considering the economic challenges prevalent in the country. According to him, “this indicates the confidence Nigerian financial institutions have in the company”.
 
Oduoza attended the session with the Executive Director, Corporate and International Banking Division, Mr. Ifeatu Onejeme, the Managing Director of UBA Capital, Mr. Leke Ogunlewe, and other senior officers of the Bank
  
A total of N49.8bn bids was raised from a varied composition of investors during the issue. Flour Mills had targeted an initial issue amount of N35bn but it accepted bids up to 12 per cent, for a total amount of N37.5bn. United Bank of Africa Plc was the lead issuer and major underwriter of the issue.
 
In his own remarks, the Group Managing Director, Flour Mills of Nigeria Plc, Dr. Emmanuel Ukpabi, said, “We, at Flour Mills, are extremely pleased with the outcome of this transaction, and the benefits it provides to the Flour Mills Group expansion plans. We take this opportunity to express our appreciation also for the fantastic job done by our advisors– UBA Plc, Guaranty Trust Bank and Zenith Capital– in putting the transaction together.” On reasons for the bond, Dr Ukpabi said that Flour Mills of Nigeria Plc has planned modernisation and expansion projects, hence the need to raise capital at an attractive interest rate, the opportunity which the bond provided.
 
Mr. Ifeatu Onejeme Executive Director, Corporate & International Banking said he was looking forward to working closely with the Flour Mills in its daily banking activities, while Mr. Leke Ogunlewe, Managing Director, UBA Capital reiterated the readiness of the UBA Group to provide its resources in supporting other capital and financial restructuring plans of the Flour Mills Group including the next series of its bond program.
 
United Bank for Africa Plc is one of Africa’s leading financial institutions offering universal banking to more than 7.5 million customer accounts. Currently operating in 16 African countries and with presence in New York, London and Paris, UBA in line with its positioning as ‘Africa’s global bank’ is able to arbitrage trade flows within the continent and beyond//end.
  
 

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