Economy
Why Flour Mills Credit Protection Metrics Remain Under Pressure
By Modupe Gbadeyanka
A local rating agency, Global Credit Ratings (GCR), said the credit protection metrics of Flour Mills of Nigeria Plc have remained under pressure due to constrained cash generation and its highly working capital-intensive operations, exacerbated by related party requirements its liquidity.
In a statement issued to announce assigning an indicative public rating of BBB+(NG) to the Series 3 Senior Unsecured Tranche A Bonds and Series 3 Senior Unsecured Tranche B Bonds of Flour Mills Nigeria Plc, the rating firm noted as a result of this, the net debt to EBITDA rose to 2.7x in FY19 and registered above 2.8x at 1H FY20.
It said notwithstanding modest improvements, interest coverage is relatively low (1.6x), while operating cash flow coverage of debt is expected to remain weak/negative.
Flour Mills intends to raise N20 billion in Series 3 Tranche A and B Bonds during first quarter of 2020, while the actual bond principal amounts will be confirmed following book building.
The bulk of net proceeds (80 percent) will be utilised to settle short term debt drawn down from bank loans and for working capital requirements (20 percent).
In 2018, the miller registered a N70 billion bond issuance scheme with Securities and Exchange Commission (SEC). An initial N20.1 billion was raised in two tranches in November 2018; being Series 1 Bonds with a nominal value of N10.1 billion and Series 2 Bonds with a nominal value of N10 billion.
The Tranche A Bonds and Tranche B Bonds have tenors of three years and five years respectively with expected maturity in 2023 and 2025. Similar to earlier issuances, the Series 3 Tranche A and B Bonds will constitute direct, unconditional, senior and unsecured obligations of the issuer.
In a statement issued by GCR, it said Flour Mills has also be accorded a stable outlook, noting that the final ratings would be accorded upon receipt of satisfactorily signed and executed final transaction documents.
GCR explained that it assigned the ratings to Flour Mills because the firm maintains a leading position in the Nigerian flour milling industry, driven by its experienced management team, extensive milling capacity, product diversification and a broad distribution network.
According to GCR, net proceeds from the Series 1 Bonds and Series 2 Bonds Issue were used to settle certain maturing debt obligations, thus, short term debt declined to 57 percent of total debt in 1H FY20 (FY19: 72 percent), albeit still high.
It said ongoing refinancing and liquidity risk remain elevated, especially given persistent negative free cash flows. In addition to Tranche A and Tranche B Bonds, the issuer intends to term out certain bank facilities, which would be supportive of a materially enhanced debt maturity profile, with approximately 25 percent of debt maturing in the first two years. Coupled with more sustainable operating cash flows, this would bode positively for Flour Mills’ funding and liquidity profile.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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