FLOUR MILLS OF NIGERIA PLC ISSUES N10,110,000,000 3 YEAR SERIES 1 BONDS AND N10,000,000,000 5 YEAR SERIES 2 BONDS UNDER ITS N70BN BOND ISSUANCE PROGRAMME

Lagos, Nigeria; 07 December 2018.

Flour Mills of Nigeria PLC (“FMN” or the “Company”), the largest flour milling company, and market leader in food and agro-allied products in Nigeria, has successfully registered a N70bn bond issuance programme (the “Programme”) and issued N10,110,000,000 Series 1 and N10,000,000,000 Series 2 senior unsecured fixed rate bonds (the “Bonds”) under the Programme, in a transaction that was strongly supported by the institutional investor community and over 190% subscribed within the price guidance. 191

. The Series 1 bonds priced at 15.50% for a tenor of three (3) years with bullet repayment at maturity, whilst the Series 2 bonds priced at 16.00% for a tenor of five (5) years with a one-year moratorium on principal payment and an amortising profile. The proceeds of both issuances, amounting to N20.11bn will be used entirely to refinance existing debt obligations of the Company and streamline its maturity profile.

Notwithstanding declining market conditions with 5yr benchmark yields rising from record lows of 10.45% at the start of the year to 15.45% highs in September, the success of the transaction was largely due to the momentum created during very well attended investor roadshow meetings in Lagos and Abuja. The Company was able to leverage on its strong credit profile and investment grade ratings assigned by two leading, well-established rating agencies.

Commenting on the listing, Mr John G Coumantaros, the Chairman of the Board of Directors of Flour Mills of Nigeria PLC commented: “Flour Mills of Nigeria PLC is delighted to return to the capital markets with such a successful outing especially with the level of interest shown by investors. The response from the market vindicates the Company’s decision to have taken this additional step in diversifying our financing options beyond more expensive short term commercial bank debt.

We are very pleased to have worked with our advisors, Stanbic IBTC Capital Limited (“Stanbic BTC Capital”) as Lead Issuing House, along with ARM Securities Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, United Capital PLC and Zenith Capital Limited as Joint-Issuing Houses, on a highly successful transaction.”

Mr. Paul M. Gbededo, the Group Managing Director, added: “the transaction will help the Company achieve its strategic objective of sustaining its market leadership position with our foods and agro-allied businesses, whilst fostering our vision of Feeding the Nation, Everyday.”

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About Flour Mills of Nigeria Plc
Incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978, Flour Mills of Nigeria (FMN) Plc. is one of Nigeria’s leading food and agro-allied companies. With a broad basket of food products, an iconic brand “Golden Penny” and a robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.

The FMN group strives in its mission to “Feed the Nation, Everyday” through its five core food value chains: Grains, Sweeteners, Oils and Fats, Proteins, and Starches. FMN creates value along the entire food chain with its “farm-to-table” model by providing inputs and know-how to farmers, aggregating and sourcing crops and raw materials to supply its world-class processing facilities across Nigeria, and distributing its innovative food brands to its customers.

More information can be found at www.fmnplc.com