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
07 Dec 2018
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