Flour Mills Seeks SEC Consent for N20bn Bond to Refinance Debt
By Dipo Olowookere
The process of securing the necessary approvals from the Securities and Exchange Commission (SEC) for the issuance of about N20 billion bonds by Flour Mills of Nigeria Plc has commenced, the company has confirmed.
The flour milling firm said in a disclosure to the Nigerian Stock Exchange (NSE) on Thursday that funds realised from the exercise would be used to refinance existing short-term debts incurred by the company.
In the notice, Flour Mills said it would also use proceeds from the bond sale to further increase the efficiency of its balance sheet for better value to shareholders, who have kept strong faith in the organisation.
“The management of FMN has disclosed that the proceeds from the bonds will be used to refinance existing short-term debt and increase further the efficiency of its balance sheet, with the ultimate objective of maximising the wealth of its shareholders,” the disclosure signed by the company secretary, Umolu Joseph, said.
Business Post reports that the N20 billion bonds to be sold by the leading integrated food business and agro-allied group are expected to be senior unsecured fixed rate with tenors of 3 and 5 years.
The papers are part of the N70 billion debt programme of the company and are “subject to appropriate pricing.”
“The process of obtaining requisite approvals from the Securities and Exchange Commission (SEC) for issuance of the bonds have begun,” Flour Mills, owners of the iconic brand, Golden Penny, said in the disclosure.