Business
Flour Mills to issue part of N70bn bond within 2 months to refinance debt
Flour and pasta maker, Flour Mills of Nigeria Plc said it would undertake a bond issuance in the next two months as part of a N70 billion programme to refinance existing debt, a group executive told Reuters on Monday.
Anders Kristiansson, group chief finance officer, said the plan was intended at leveraging low market rates, going further to say that Flour Mills had made moves to conserve cash following the coronavirus outbreak.
The firm sold N30 billion commercial paper in April as part of strategies to mitigate the potential impact of the pandemic on its business.
‘We have a 70 billion bond programme. We are looking to tap into the market again given the low interest rate environment,’ Kristiansson said.
Read also: Flour Mills, Cornerstone, Consolidated Hallmark top Ripples Nigeria stocks watchlist
‘We anticipate coming to the market to refinance some of our existing debt by bring a bond to the market. We anticipate doing that in the next two months.’
Flour Mills stated it had recorded consistent growth in its food business and agro-business, noting that revenue grew by 15 per cent to N154.6 billion in the first quarter. It has roughly N75.8 billion in net debt as of the first quarter.
Yields on short-term bills and bonds have dropped below 6 per cent from double digits on account of excess liquidity on money markets as foreign investors dump assets to repatriate funds.
The company said it was seeking an organic growth strategy and proposed to enlarge its edible oil refinery at the same time widening the spread of its animal feed products.
Join the conversation
Opinions
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
German Police bust alleged Nigerian scam dating ring
German authorities have arrested eleven individuals suspected of being members of a Nigerian mafia group involved in a large-scale dating...
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...