Following its commitment to facilitate growth and development in the Nigerian debt markets and the economy at large by continuously promoting an efficient, transparent, and well-regulated market in order to attract and retain both domestic and foreign investors, FMDQ Securities Exchange Limited (“FMDQ Exchange” or the “Exchange”), through its Board Listings and Markets Committee, has approved the listing of Flour Mills of Nigeria PLC ₦46.00 billion Series 1 Bond under its ₦200.00 billion Bond Issuance Programme on its platform.
Flour Mills of Nigeria PLC (“Flour Mills” or the “Issuer”) is a Nigerian food and agro-allied company, with a vertically integrated supply chain of food, agro-allied, logistics and support services businesses. It is involved in the production of a wide range of food products, including flour, pasta, noodles, and ball foods. The proceeds from this bond, which is sponsored by FCMB Capital Markets Limited (Lead Sponsor), Chapel Hill Denham Advisory Limited, CardinalStone Partners Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, Stanbic IBTC Capital Limited and Quantum Zenith Capital & Investments Limited (Co-Sponsors) – all Registration Member (Listings) of FMDQ Exchange, will be applied by the Issuer for its general corporate purposes.
Speaking on the successful issuance of the bond, the Group Chief Financial Officer, Flour Mills of Nigeria PLC, Mr. Anders Kristiansson, stated “Flour Mills is quite pleased with the successful issuance and listing of the ₦46.00 billion 3-Year Series 1 fixed rate bond under our ₦200.00 billion bond issuance programme. The issuance was well received by the domestic investor community – reflected in the 1.15 times oversubscription to the issue – which is a testament to the very positive perception of the brand. Flour Mills is one of the Nigeria’s largest and the oldest integrated food business, with a broad product portfolio and a robust pan-Nigerian distribution network. The Group has the largest food basket offering of any Nigerian Fast-Moving Consumer Goods Company with over twenty-eight (28) consumer products. Its core strength lies in the Group’s food business, which is the highest contributor to its revenue. As an organisation with Pan-African outlook, Flour Mills aims to continue to expand its current businesses while seeking to develop new ones.
This latest bond issuance is yet another step towards enhancing operational efficiency through the diversification of sources of medium to long-term funding with the goal of reducing average borrowing cost and unlocking greater value for stakeholders. The Group is appreciative of the Nigerian investor community for the continued demonstration of confidence towards the organisation thus far and are committed to nurturing strong partnership as the Group strives to achieve its stated strategic objectives.”
Also, the Head, Debt Solutions, FCMB Capital Markets Limited, Mr. Ikechukwu Omeruah, stated “FCMB Capital Markets Limited is delighted to have acted as the Lead Issuing House/Sponsor to the ₦46.00 billion Series 1 bond issuance by Flour Mills. We are committed to providing our clients with distinct, sensible and actionable guidance on a diverse range of funding options with the ultimate view of increasing resources available for strategic planning and enhancing operational efficiency. We are thankful to the Board and Management of Flour Mills for trusting FCMB Capital Markets Limited and the rest of the team of advisers to deliver the successful bond issuance.”
As part of its mandate to organise and govern markets within its purview and align the Nigerian debt markets with international best practices and standards, FMDQ Exchange will continue to promote credibility for securities admitted on its platform, through its highly efficient registration, listing and quotation service, instituting requisite world-class standards to drive transparency, governance, market oversight and liquidity to power growth in the Nigerian financial markets.
FMDQ Group is Africa’s first vertically integrated financial market infrastructure (“FMI”) group, strategically positioned to provide registration, listing, quotation and noting services; integrated trading, clearing & central counterparty, settlement, and risk management for financial market transactions; depository of securities, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited. As a sustainability-focused FMI group, FMDQ Group, through FMDQ Exchange, operates Africa’s premier Green Exchange – FMDQ Green Exchange – positioned to lead the transition towards a sustainable future.