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Friday, September 22, 2017

FMN lists N20.11bn bond on NSE, FMDQ

Flour Mills of Nigeria Plc has listed a N20.11bn bond on the Nigerian Stock Exchange and the FMDQ OTC Plc.
The Group Managing Director, Flour Mills, Mr Paul Gbededo, while speaking at the listing programme in Lagos on Friday, said the N10.11bn Series 1 and N10bn Series 2 senior unsecured fixed rate bonds were issued under its N70bn bond issuance programme.

He said the transaction was strongly supported by the institutional investor community and oversubscribed by 190 per cent within the price guidance.

According to Gbededo, the Series 1 bonds are priced at 15.50 per cent for a tenor of three years with bullet repayment at maturity, while the Series 2 bonds are priced at 16 per cent for a tenor of five years with a one-year moratorium on principal payment and an amortising profile.

He noted that the proceeds of both issuances were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.

He said, “Notwithstanding declining market conditions with a five-year benchmark yield rising from a record low of 10.45 per cent at the start of the year to 15.45 per cent high in September, the success of the transaction was largely due to the momentum created during the well-attended investor roadshow meetings in Lagos and Abuja.
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