Flour Mills of Nigeria PLC (FMN), one of the largest food and agro-allied groups in Nigeria, has announced a 262 percent oversubscription on its series 3 Commercial Paper (CP) order book, recording a total N144.37 billion bids.
In June, the group tapped into the market for its Series 3 Commercial Paper to raise funds to meet its working capital requirements.
The order book recorded N144.37 billion in bids which represent 262 percent oversubscription, the company said in a statement.
“All investor classes were well represented on the order book with strong showings from Banks (39.8 percent) and Pension Fund Administrators (40.8 percent),” the group disclosed in a statement made available to BusinessDay.
“The group took N55 billion at a 239 days maturity in this first tranche and is looking at launching a second tranche, to sequence the repayment patterns,” the statement added. Recently, FMN also earned an “A-”rating from Augusto &Co and “A” from DataPro.
According to FMN, the ratings by both firms reflect the company’s strong financial position, extensive distribution network, and dominant market share in the Nigerian food industry.
Titus O. Owoeye, director, group treasury, and investor relations, FMN, stated that the group has been driving local content development and investing significantly across its value chain in over six decades.
“In 2022, revenue generated by the group came in at over a trillion naira joining a select group of Nigerian companies with such a feat,” he said in a statement.
“FMN has a good credit history and credit rating; strong brand value with a loyal customer base, has highly experienced and very competent board and management teams respective, and as demonstrated over the years, the group is a key player in the Nigerian FMCG and agribusiness sector,” he said.
“It is worth noting that the success of the backward integration program embarked upon by the group in the last few years has also contributed immensely to the growth of the top line and bottom line for the business,” he added