NIGERIA – In line with its arrangements to maintain operations in the face of the Coronavirus (COVID-19) restrictions, the Nigerian Stock Exchange (NSE) has successfully listed Flour Mills of Nigeria Plc 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.
The Group Managing Director, Flour Mills Nigeria Plc, Mr. Peter Gbededo said, “We are delighted to return to the capital market with such a successful outing, especially with the level of interest shown by investors. The response from the market vindicates our decision to have taken this additional step to diversify our financing options beyond short-term commercial bank debt.”
“Furthermore, we are excited about the role NSE is playing in deepening secondary market liquidity thus aligning our market with international best practices, and we look forward to enjoying the benefits of these efforts in our short and long-term instruments.”
Oscar Onyema, Chief Executive Officer, NSE, reiterated the commitment of the Exchange to support its stakeholders saying, “As an Exchange, we are committed to ensuring that our operations and trading activities continue seamlessly throughout this period.”
“We have put in place the requisite measures to guarantee that our staff are able to provide requisite support, our stakeholders are able to conduct business digitally, and that all relevant information continues to flow into the market to spur capital market activity during the COVID-19 pandemic.”
Flour Mills intends to use the proceeds from the bond issuance to refinance its existing short-term debt, increase the efficiency of its balance sheet and ultimately increase the wealth of the company’s shareholders.
