Flour Mill of Nigeria (FMN) has stated that it would continue to leverage its impressive credit rating to raise funds from the capital market.
Flour Mill of Nigeria Plc, a prominent consumer conglomerate in Nigeria, has solidified its robust financial standing by earning an exceptional rating and upholding strong brand values.
A statement said the company controls significant market share across its business divisions, while the Group is an active player in the debt capital market, constantly assessing and seeking to optimise its costs of funding, leveraging its strong reputation for timely repayment at maturity.
The Group said it decided to tap 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, 2FMN eyes capital market for fresh funding023, to resounding feedback from the investing public, it stated.
It stated that, “The orderbook recorded N144.37bn in bids which represent 262 per cent oversubscription. All investor classes were well represented on the order book with strong showings from banks (39.8 per cent) and Pension Fund Administrators (40.8 per cent).”
The Group took N55bn at a 239-day maturity in this first tranche and was looking at launching a second tranche, to sequence the repayment patterns.
Speaking on the FMN’s established credit rating and record over the years, the Director, Group Treasury, and Investor Relations, FMN, Mr Titus Owoeye, said, “For the past six decades, the Group has been driving local content development and investing significantly across its value chain. In 2022, revenue generated by the Group came in at over a N1tn joining a select group of Nigerian companies with such a feat.
“FMN has a good credit history and credit rating; strong brand value with a loyal customer base, has highly experienced and very competent board and management teams respective, and as demonstrated over the years, the Group is a key player in the Nigerian FMCG and agribusiness sector.”
He noted that the success of the backward integration programme embarked upon by the Group in the last few years had also contributed immensely to the growth of the top line and bottom line for the business.
