Following  the successful conclusion of the N 37.5 billion first tranche of unsecured bond issue for Flour Mills of Nigeria Plc, the Group Managing Director, United Bank for Africa Plc, Mr. Phillips Oduoza has said that corporate organisations in Africa should expect more of such deals as the bank intends to be a major player in the corporate sector in Africa

Speaking during an interactive session with the Group Managing Director, Flour Mills of Nigeria Plc, Dr. Emmanuel Ukpabi during a visit in Lagos, Mr Oduoza said “UBA is poised to play a strategic role in financial intermediation for our clients across Africa through the provision of value_added products and Services”.

We are immensely proud to have played a major role in bringing this transaction to the market. The size of the transaction, the tight pricing level of 12 per cent as well as the fact that it was oversubscribed demonstrates the confidence of investors in our capability as the issuer,” he said. This largest corporate bond ever raised in Nigeria , coming on the heels of the successful raising of N20bn by UBA Plc from the capital market recently, according to the UBA GMD, will help in deepening the Nigerian bond market.

A total of N 49.8 billon bids was raised from a varied composition of investors during the issue. Flour Mills had targeted an initial issue amount of N 35 billion but it accepted bids up to 12 per cent, for a total amount of N 37.5 billion. United Bank of Africa Plc was the lead issuer and major underwriter of the issue.

In his own remarks , the Group Managing Director, Flour Mills of Nigeria Plc, Dr. Emmanuel Ukpabi, said, “We, at Flour Mills, are extremely pleased with the outcome of this transaction, and the benefits it provides to the Flour Mills Group expansion plans.”

We take this opportunity to express our appreciation also for the fantastic job done by our advisors– UBA Plc, Guaranty Trust Bank and Zenith Capital– in putting the transaction together.” On reasons for the bond, Dr Ukpabi said that Flour Mills of Nigeria Plc has planned modernisation and expansion projects, hence the need to raise capital at an attractive interest rate, the opportunity which the bond provided.

Mr. Ifeatu Onejeme Executive Director, Corporate and International Banking, in a brief remark said he was looking forward to working closely with Flour Mills in its daily banking activities among others.