FMDQ lists Floor Mills’ N64.97bn commercial paper

By Cynthia Ezekwe

The FMDQ Securities Exchange Limited has listed for trading the N64.97 billion Commercial Papers (CP) of Flour Mills  Nigeria Plc (FMN) on its platform.

According to the financial market infrastructure, the CP comprises N13.33 billion series one and N51.64 billion series two commercial papers under its N200.00 billion CP issuance programme, and the proceeds from the quotation of these CPs, will be utilised by the Issuer to support its short-term funding requirements.

The CP was sponsored by FBNQuest Merchant Bank Limited, Chapel Hill Denham Advisory Limited, FCMB Capital Markets Limited and United Capital.

Meanwhile, FMDQ securities  exchange affirmed its commitment to accelerate the development of the Nigerian debt markets, noting that it   continues to use its credible platform to provide enhanced registration, listing, quotation, and trading of debt securities in the Nigerian financial markets, while adding that the Nigerian CP market has remained a viable funding option for corporate entities seeking to finance their short-term expenditures, including working capital shortfalls.

Anders Kristiansson, the group chief financial officer, Flour Mills of Nigeria, speaking on the  successful issuance of the CPs,stated that the  joint quotation is aimed at harnessing alternative funding sources to meet the company’s capital requirements as it seeks to  deepen strategic, growth-consolidating investments across  value chains that would unlock greater value for its stakeholders.

On his part, Oluseun Olatidoye, the head, capital markets, FBNQuest Merchant Bank, said, “FBNQuest Merchant Bank, the investment banking and asset management subsidiary of FBN Holdings PLC, is pleased with its role as lead arranger on the registration of the Flour Mills N200.00 billion CP Programme and the subsequent quotation of the first two issuances under that Programme. FBNQuest has a strong reputation for helping indigenous corporates access the capital markets to meet their funding goals and we are pleased to have been able to assist Flour Mills in tapping into the debt markets to access funding to meet their working and other capital requirements.”