Flour Mills Repays N51.64bn Series 2 Commercial Paper

Flour Mills of Nigeria Plc (FMN), a leading Nigerian food and agro-allied company, announced the successful repayment of its N51.64 billion Series 2 Commercial Paper (CP) on Friday, 17th November 2023.

In a statement the company said this follows the timely completion of the N13.33 billion Series 1 repayment on the 22nd of August 2023.

Commenting on the successful repayment, group chief finance officer, FMN, Anders Kristiansson, stated, “We are pleased to announce the timely and successful repayment of our Series 2 Commercial Paper. This accomplishment reflects FMN’s commitment to financial prudence and the confidence reposed in our organisation by the investing public. We express our gratitude to our stakeholders for their continued support, and we remain steadfast in our commitment to delivering sustainable value and maintaining the highest standards of corporate governance.”

According to the statement, ‘‘FMN has consistently demonstrated a strong reputation for timely repayment in the Debt Capital Market. The Series 1 CP and Series 2 CP, totaling N64.97 billion, were initially issued on February 22, 2023, as part of the N200 billion Commercial Paper Programme registered by FMN earlier that month. On the 10th of February 2023, FMN initiated its N200 billion Commercial Paper Programme, which included the launch of Series 1 and Series 2 on the 22nd of February. The Series 1, with a yield of 13.0 per cent, raised N13.33 billion, while the Series 2, with a yield of 14.0 per cent, raised N51.64 billion.

‘‘Following the success of Series 1 and 2, FMN made a strategic decision to tap into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators contributing 39.7% and 40.8% respectively.

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The transaction was efficiently managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.’’