Financial market infrastructure group admits Flour Mills’ US$77.5m commercial papers

NIGERIA – FMDQ, Africa’s first vertically integrated financial market infrastructure group, through its subsidiary FMDQ Securities Exchange Limited, has approved the quotation of the Flour Mills of Nigeria Plc N10bn (US$25.8m) Series 13 and N20bn (US$51.6m) Series 14 Commercial Paper (CP) notes.

The notes are part of the diversified Nigerian agribusiness firm’s N100bn (US$258.4m) CP Issuance Programme on the Exchange’s platform, according to a statement from FMDQ.

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“As with previous papers issued under the programme and like all other securities listed, quoted and traded on the FMDQ Exchange platform, the Flour Mills CPs shall be availed market visibility through FMDQ Exchange’s website and systems,” stated FMDQ.

It added that the firm’s CPs would enjoy transparency through their inclusion in the FMDQ Daily Quotations List, and governance and continuous information disclosure to protect investor interest, among other benefits derived from the admission to FMDQ Exchange, reports The Punch.

The Nigerian CP market has remained a viable option for corporate entities looking to raise funds to meet shortfalls in their working capital needs, as well as other short-term expenditures especially during the current COVID-19 pandemic.

The recent admittance of the CP paper comes months after the Nigerian Stock Exchange (NSE) successfully listed Flour Mills’ bonds worth N20 billion (US$55.16m) on the Exchange.

Flour Mills listing was its N12.5 billion (US$32.3m) 3-year, 10% Series 3 (Tranche A) Fixed Rate Senior Unsecured Bond due 2023; and the N7.5 billion (US$19.4m) 5-Year, 11.10% Series 3 (Tranche B) Fixed Rate Senior Unsecured Bond due 2025; part of the N70 billion Bond (US$193m) Issuance Programme on its platform.

In its efforts to raise capital, International Breweries Plc, the Nigerian unit of global brewer, Anheuser-Busch InBev recently achieved 100% subscription in its Rights Issue, which was described as the largest in Nigeria.

The brewery giant was able to raise N165 billion (US$452.9m) through the sale of 18.3 billion units of ordinary shares of 50 kobo each at N9.00 per share to its existing shareholders in December 2019.

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