Flour Mills Eyes More Capital Market Funding

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Goddy Egene

The Group Managing Director/Chief Executive Officer, Flour Mills of Nigeria (FMN) Plc, Mr. Omoboyede Olusanya, has said the company will continue to explore opportunities in the capital market to enable it diversify its funding sources whilst playing a critical role in the development of our market.

Olusanya, stated this at the virtual listing of the Tranche A and Tranche B bonds of the FMN Plc valued at N29.8 billion on the Nigerian Stock Exchange (NSE).

According to him, the bonds were floated to strengthen the company’s capital base by deleveraging its balance sheet and support its working capital needs.

He said: “We thank the NSE for hosting us at this virtual closing gong ceremony today and we are excited about the role The Exchange is playing in deepening secondary market activities in the Nigerian market in line with international best practice.

“The issuance of the N29.8 billion tranche A and B bond coincides happily with the 60th anniversary of FMN and fully utilizes the N70 billion programme registered in 2018. We will continue to explore opportunities to raise funds via the capital market as this has allowed us to diversify our funding sources whilst playing a critical role in the development of our market.”

Olusanya said the company was passionate about feeding the nation to improve quality of living for Nigerians through increased production and investments in backward integration.

In his remarks, the Divisional Head, Listings Business, NSE, Mr. Olumide Bolumole, said: “It has been a positive start to the Nigerian capital market in the new year and we are pleased to commemorate the listing of FMN’s N29.8 billion Tranche A and Tranche B bond issue, the final series under its N70 billion Bond Issuance Programme.

As is our custom to celebrate significant milestones and accomplishments of our issuers, we also applaud and recognize the contributions of Mr. Paul Gbadedo, who recently retired after 38 years of meritorious service and congratulate Mr. Olusanya on his appointment as the Group MD/Chief Executive Officer at the NSE, we remain committed to supporting the strategic objectives of our issuers, providing a platform for raising capital even in the toughest of times.”

FMN had reported a growth of 31 per cent in revenue to N355.1 billion for the six months ended September 2020 compared with N270.8 billion in the corresponding period of 2019. The company ended the period profit after tax (PAT) rose 68 per cent from N5.9 billion to N9.9 billion.