| Bonds & Fixed Income |    814 VIEWS  |
| Bonds & Fixed Income | |
| 814 VIEWS | |
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Wednesday, January 27,
2021 / 11:30 AM / by FMDQ / Header Image Credit: World Grain
Coming shortly on the heels of the recent Commercial Paper ("CP")
Issuances by Total Nigeria PLC, Valency Agro Nig. Ltd. and Mixta Real Estate
PLC, FMDQ Securities Exchange Limited ("FMDQ Exchange" or "the Exchange"),
following the due diligence of its Board Listings and Markets Committee has
approved the Listing of the Flour Mills of Nigeria PLC ("FMN" or "Flour
Mills") 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 Nigerian economic landscape and business environment has continued
to witness disruptions as occasioned by the COVID-19 pandemic with attendant
concerns of a prevailing second wave despite global vaccination efforts and
restrictive guidelines put in place by governments and advisory bodies. The
situation has seen corporates across multiple sectors re-evaluate their
financing strategies going into the new year by tapping the debt capital
markets as a viable avenue to efficiently raise capital in order to meet their
business expansion/working capital needs. The critical role which debt markets
play in facilitating sustainable growth and development cannot be
overemphasized. The Nigeria debt capital market (DCM) plays an important role
in the efficient mobilisation and allocation of resources in the economy and
despite the impact of the current times, the market has continued to
effectively support corporates looking to expand their business operations. It
is in this regard that FMDQ Holdings PLC ("FMDQ Group" or "FMDQ") in its
capacity as a leading market organiser of the Nigerian DCM, amongst others, has
continued to provide stakeholders in the Nigerian capital market with a
credible and robust platform for capital access, risk management and transfer
of value.
As major effects of the pandemic, Nigeria has witnessed rapid inflation
characterised by dwindling food security and reduced labour market
participation. Flour Mills is strategically positioned to produce and supply
products of superior quality and value to the market, thereby, enriching the
lives of consumers, customers, communities, employees, and all stakeholders.
According to Mr. Omoboyede Olusanya, Group Managing Director/Chief Executive
Officer, Flour Mills of Nigeria Plc, "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".
The proceeds of both bonds have been used entirely to refinance our
existing commercial paper notes also successfully issued during the pandemic". Also commenting on the listing, Abimbola Kasim, Ag Managing Director, FCMB
Capital Markets Limited, stated "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".
As the economic impact of COVID-19 continues to crystallise and business
organisations strive to rise above the 'murky waters', FMDQ Group remains
steadfast in contributing towards the emergence of a resilient financial market
in Nigeria. As with previous bonds issued under the programme and with all
other securities listed, quoted, and traded on the FMDQ Exchange platform, the
Flour Mills bonds shall be availed total market visibility through FMDQ
Exchange's website and systems; transparency through their inclusion in the
FMDQ Daily Quotations List; governance and continuous information disclosure to
protect investor interest; amongst other benefits derived from the preferred
admission to FMDQ Exchange.
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