FMDQ admits Flour Mills N20.11b unsecured fixed rate bond

FMDQ or the OTC Exchange, through its board listing, markets and technology committee at the weekend, admitted the listing of the Flour Mills of Nigeria Plc’s ₦10.11 billion Series 1, and ₦10.00 billion Series 2 senior unsecured fixed rate bonds under the firm’s  ₦70.00 billion bond issuance programme on its platform.
   
The Series 1 bonds is priced at 15.50 per cent for a tenor of three years with bullet repayment at maturity, while the Series 2 bond is priced at 16.00 per cent for a tenor of five years with a one-year moratorium on principal payment, and an amortising profile.  
The proceeds of both issuance, amounting to N20.110 billion, would be deployed into refinancing Flour Mill’s existing debt obligations, and streamline its maturity profile.  

This, he said, has boosted investors’ confidence in the Nigerian Debt Capital Market (DCM) through transparency, and spearheading of initiatives to boost secondary market liquidity.
   
Onadele added that through consistent collaboration with stakeholders, the securities market would continue to further deepen and effectively position the Nigerian DCM for growth, and invariably contribute to the growth of the economy at large.
     
The Group Managing Director, Flour Mills, Paul Gbededo said the transaction was strongly supported by the institutional investor community, and oversubscribed by 190 per cent within the price guidance.  
   
According to him, the transaction will help the company achieve its strategic objective of sustaining market leadership position in foods and agro-allied businesses, while fostering its vision of ‘Feeding the Nation Everyday’.