Flour Mill of Nigeria Plc Oversubscribes Series 3 Commercial Paper, Establishes Strong Financial Position

Flour Mill of Nigeria Plc (FMN) has established a strong financial position through excellent credit ratings and records. The group tapped into the market for its Series 3 Commercial Paper to raise funds to meet its working capital requirements in June 2023.

The Series 3 was launched on June 23, 2023, to resounding feedback from the investing public. The Order book recorded N144.37 billion in bids, which represents 262% oversubscription.

All investor classes were well represented on the order book with strong showings from Banks (39.8%) and Pension Fund Administrators (40.8%).

The Group also took N55 billion at 239 days maturity in this first tranche and is looking at launching a second tranche to sequence the repayment patterns.

The Director of Group Treasury and Investor Relations, FMN, Titus Owoeye, said the group has been driving local content development and investing significantly across its value chain for the past six decades. He said the revenue generated by the group in 2022 came in at over N1 trillion, joining a select group of Nigerian companies with such a feat.

According to him, FMN has a good credit history and rating as well as a strong brand value with a loyal customer base. Owoeye said with the highly experienced and very competent board and management teams, as demonstrated over the years, the group is a key player in the Nigerian FMCG and agribusiness sector.

He said the success of the backward integration programme embarked upon by the group in the last few years has also contributed immensely to the growth of the top line and bottom line for the business.

"The FMN rating of 'A-' by Augusto & Co and 'A' by DataPro shows its strong financial position, extensive distribution network, and dominant market share in the Nigerian food industry," he said.

Owoeye added that the group plans to continue leveraging the capital markets to raise finance to support both short-term and long-term financing needs as one of its funding options.

With its Series 3 Commercial Paper experiencing overwhelming demand, Flour Mill of Nigeria Plc has solidified its strong financial position and garnered widespread investor confidence. This achievement reflects the company's solid credit ratings, efficient operational performance, and strategic focus on local content development.

The success of the Series 3 issuance is evident in the significant oversubscription, with the total bids reaching N144.37 billion, surpassing expectations by 262%. The participation of various investor classes, particularly banks and pension fund administrators, highlights the broad appeal of FMN's investment opportunities.

FMN's Director of Group Treasury and Investor Relations, Titus Owoeye, emphasized the group's commitment to driving local content development and investing in its value chain, resulting in the generation of over N1 trillion in revenue in 2022. This achievement places FMN among the illustrious group of Nigerian companies with such remarkable financial performance.

The unyielding success of FMN is attributed not only to its strong credit history and brand value but also to its competent management teams and extensive distribution network. The company's dominance in the Nigerian food industry is further underscored by its 'A-' credit rating by Augusto & Co and 'A' rating by DataPro.

In addition to exceptional financial performance, FMN's focus on the backward integration programme has significantly contributed to the growth of the company's top line and bottom line. By actively engaging in agricultural production, milling, and manufacturing, FMN has achieved self-sufficiency in key raw materials, fostering cost efficiency and long-term sustainability.

Looking ahead, FMN remains steadfast in leveraging the capital markets to meet its financing needs. By accessing short-term and long-term funding options, the company aims to strengthen its market position and sustain its growth trajectory.

The impressive demand for FMN's Series 3 Commercial Paper reaffirms the confidence investors have in the company's ability to deliver strong returns and maintain its market leadership. As FMN continues to drive local content development and expand its operations, it remains a key player in the Nigerian FMCG and agribusiness sectors.

With an unwavering commitment to excellence, FMN is well positioned to navigate the dynamic business landscape and seize opportunities for sustainable growth in the Nigerian market and beyond.

Source of content: OOO News 2023-07-14 News

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