Flour Mills of Nigeria Plc has stated that it will promote the domestic markets in Nigeria as a viable source of long term development capital.
The Group Managing Director of Flour Mills of Nigeria Plc., Dr. (Chief) Emmanuel A. Ukpabi, who led a high powered team of its executive officers to the Nigerian Stock Exchange (NSE)’s Quotation Committee meeting preparatory to the listing of its N37.5 billion Fixed Rate Senior Unsecured Bond said that the transaction which formally closed at the company’s Completion Board Meeting in December, 2010 was arguably the largest ever local currency bond in the West African region.
He noted that the Nigerian capital markets were certainly blazing a trail of innovation on the continent, adding that Flour Mills was extremely proud to have contributed to this development, especially in its 50th Anniversary year.The Group Managing Director told the committee members that Flour Mills as a leading manufacturing conglomerate in Nigeria was pleased to further strengthen and diversify its funding sources and investor base through an initiative of this nature.
He described it as a novel and landmark transaction in Nigeria, and across West Africa.
Dr. Ukpabi promised that the company would continue to promote the domestic markets in Nigeria as a viable source of long term development capital.
Flour Mills’ bond issue, according to the Managing Director, would enable the company to refinance some existing bank debt, thereby achieving tenure extension and rate protection in a rising rate environment; expand its milling capacity; develop a new line of business in sugar refinery; and, shore up working capital.
He was delighted to acknowledge that the reforms embarked upon by the Central Bank of Nigeria, the Security and Exchange Commission, the Nigerian Stock Exchange as well as other regulators, have started yielding results by deepening the market and enabling companies such as Flour Mills of Nigeria to tap the market with new instruments beneficial to the financial system and capital market as a whole.
He also thanked all investors who embraced the bond for the confidence they have reposed in the company.