Henry Uche

Flour Mills of Nigeria Plc has announced its readiness to increase its shareholders’s wealth, refinancing its existing short-term debt as well as increase efficiency of its balance sheet.

An investment newsletter from Nigerian Investment Promotion Commission (NIPC) quoting nairametrics disclose that FMN plans to issue a N20 billion medium-term bond, subject to appropriate pricing and use the proceeds to achieve the above objectives.

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NIPC stated that a statement to the Nigerian Stock Exchange, disclosed that the maker of Golden Penny spaghetti said that the proposed issuance are expected to be senior unsecured fixed-rate bonds. The statement went further to disclose that the bonds would have tenors of three years and five years, respectively.

The latest issuance is part of Flour Mill’s previously approved N70 billion issue programme. The company said it had begun the process of getting the needed approval from the Securities and Exchange Commission so that the issuance could take effect.

“Flour Mills intends to use the proceeds from the bond issuance to do three important things, including refinancing its existing short-term debt, increase the efficiency of its balance sheet, and ultimately increase the wealth of the company’s shareholders.