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 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 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.
