- FMN successfully repays N51.64 billion Series 2 Commercial Paper
- Repayment follows timely completion of N13.33 billion Series 1 repayment
- FMN demonstrates strong reputation for timely repayment in Debt Capital Market
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. This follows the timely completion of the N13.33 billion Series 1 repayment on the 22nd of August 2023.
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%, raised N13.33 billion, while the Series 2, with a yield of 14.0%, 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.
The transaction was efficiently managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with Chapel Hill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.
Commenting on the successful repayment, Mr. Anders Kristiansson, Group Chief Finance Officer, FMN, 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 organization 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.”
The success of FMN’s Commercial Paper Programmes underscores the company’s strong financial standing and the trust it commands in the market. FMN remains committed to leveraging the Debt Capital Market to meet its working capital requirements.
FMN has consistently demonstrated a strong reputation for timely repayment in the Debt Capital Market
Incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978, Flour Mills of Nigeria (FMN) Plc, owners of the iconic Golden Penny Food brand is one of Nigeria’s leading food and agro-allied companies. With a broad basket of food products and robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.
FMN group strives in its purpose 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.
