Flour Mills moves to diversify funding sources

Flour Mills of Nigeria (FMN) Plc on Thursday expressed commitment to explore diversified funding sources from the Nigerian capital market for enhanced growth and development.

FMN Group Managing Director, Mr Omoboyede Olusanya, said this at the listing of the Tranche A and Tranche B bonds valued at N29.8 billion on the Nigerian Stock Exchange (NSE).

It is under the N70 billion Flour Mills of Nigeria Plc’s Bond Issuance Programme.

Olusanya said that the company would continue to explore funding opportunities inherent in the capital market to ensure business growth and continuity.

He said that the bonds were floated to strengthen the company’s capital base by deleveraging its balance sheet and support its working capital needs.

“We are delighted with the response from the market, we are happy to be listed.

“We are introducing a N29.9 billion listing under a N70 billion bond issuance cover; we will continue to raise funding to diversify our funding sources,” he said.

Olusanya said that the company was passionate about feeding the nation to improve quality of living for Nigerians through increased production and investments in backward integration.

Earlier, Mr Olumide Bolumole, Divisional Head, Listings Business, NSE, said that the FMN N29.9 billion Tranches A and B bond issue was a positive stand in the capital market.

Bolumole said that the COVID-19 pandemic had presented a new normal, noting that the NSE would continue to be resilient by ensuring business continuity.

He said that the NSE would continue to support companies to raise the needed funds from the market.

Also speaking, Alhaji Rasheed Yussuf, Managing Director/CEO, Trust Yields Ltd., commended the company for exploring financing opportunities in the capital market instead of relying on short-term borrowings.

Yussuf called on the company to ensure payment of enhanced dividend to shareholders in the years ahead.