UPDC strikes to redeem N4.355 billion bonds

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Flour Mills Nigeria Plc’s recent N29.8 bond itemizing will assist the nation’s main meals enterprise firm to discover diversified funding sources from the Nigerian capital market, with the hope of enhancing development and the event of the corporate.

This assertion was made by the Group Managing Director of FMN, Mr. Omoboyede Olusanya, on the itemizing of the Tranche A and Tranche B bonds valued at N29.8 billion on the Nigerian Stock Exchange (NSE).

The meals and the agro-allied firm which has remained Nigeria’s largest and oldest built-in agro-allied enterprise with a broad profile and sturdy Pan-Africa distribution issued these bonds below its N70 billion Bond Issuance Programme.

Olusanya stated that the corporate would proceed to discover funding alternatives inherent within the capital market to make sure enterprise development and continuity.

While talking concerning the Credit Rating of the Programme, he disclosed that FMN’s credit standing, in addition to the operational financing of the Group, have improved significantly.

According to him, the bonds floated by Flour Mill will assist to strengthen the corporate’s capital base and supply the wanted working capital required by the Company. He added that Flour Mills Group will proceed to deleverage and substitute quick time period financing with longer-tenured and cheaper price funding to optimize capital construction and cut back financing value.

He famous that Flour Mills will proceed to discover alternatives to boost fundings through the capital market as this allows the corporate to diversify its funding sources and proceed to play a job within the capital market as a major participant in it.

What they’re saying

The Group Managing Director of FMN, Mr. Omoboyede Olusanya, on the digital occasion, stated;

  • “We are delighted with the response from the market, we are happy to be listed.
  • “We are introducing an N29.9 billion listing under an N70 billion bond issuance cover; we will continue to raise funding to diversify our funding sources.
  • “The company remains passionate about feeding the nation to improve the quality of living for Nigerians through increased production and investments in backward integration.”

What you need to know

  • With the profitable issuance of the brand new N29.8bn Tranche A and Bonds, FMN has utilized its bond issuance program registered in 2018.
  • It is necessary to notice that the Senior Unsecured bond itemizing consists of an N4.89bn below Series 4 Tranche A of the bond issuance programme, at a 5.5% fee for five years, due by 2025, and a 25bn below Series 4 Tranche B of the identical program at a 6.25% fee for a tenure of seven years, due by 2027.
  • The bond proceeds shall be used to refinance current debt obligations. It may also assist the corporate take collaborative actions to diversify the corporate’s financing choices past costly quick time period debt.

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