Flour Mills of Nigeria (FMN) Plc, has quoted N64.97 billion Commercial Paper (CP) on the FMDQ platform in a bid to support its working capital requirements.
FMDQ announced the listing of Flour Mills of Nigeria Plc’s N13.33 billion Series 1 and N51.64 billion Series 2 Commercial Papers under its N200.00 billion CP Issuance Programme on the Exchange’s Platform on March 13, 2023, according to a statement from the Exchange on Wednesday.
The proceeds from the quotation of these CPs, which are sponsored by FBNQuest Merchant Bank Limited as the lead sponsor, Chapel Hill Denham Advisory Limited, FCMB Capital Markets Limited and United Capital Plc as co-sponsors, will be utilised by the issuer to support its short-term funding requirements.
Speaking on the successful issuance of the CPs, the Group Chief Financial Officer, Flour Mills of Nigeria Plc, Mr. Anders Kristiansson said the joint quotation “aimed at harnessing alternative funding sources to meet some of our working and other capital requirements as we seek to deepen strategic, growth-consolidating investments across our value chains and in enabling capabilities that would unlock greater value for our stakeholders.”
The Head, Capital Markets, FBNQuest Merchant Bank Limited, Mr Oluseun Olatidoye, stated “FBNQuest Merchant Bank Limited, the investment banking and asset management appreciates its role as lead arranger on the registration of the Flour Mills N200.00 billion CP programme and the subsequent quotation of the first two issuances under its Programme on N13.33 billion Series 1 and N51.64 billion Series 2”.
The Nigerian CP market has remained a viable funding option for corporate entities seeking to finance their short-term expenditures, including working capital shortfalls.
The Flour Mills CPs, as with other securities listed, quoted and traded on the FMDQ Exchange’s platform, will benefit from the Exchange’s diversified market stakeholders, its highly responsive and efficient listing and quotation processes, and credible benchmark pricing required for appropriate portfolio valuation, amongst others.
FMDQ Securities Exchange Limited said it would continue to use its platform to provide enhanced registration, listing, quotation, and trading of debt securities in the Nigerian financial markets.
