September 24, 2020
  • September 24, 2020
  • Home
  • Business
  • Flour Mills plans N70 bln bonds to refinance existing debt
Flour Mills, Bonds issuance

Flour Mills plans N70 bln bonds to refinance existing debt

By on August 17, 2020 0 71 Views

Flour Mills of Nigeria said its plans to issue a bond within the next two months as part of its N70 billion programme to refinance existing debt, a group executive said on Monday.
Anders Kristiansson, group chief finance officer, said the move was aimed at taking advantage of low money market rates, adding that Flour Mills had taken proactive measures to conserve cash in response to the coronavirus pandemic.
The company raised N30 billion in commercial paper in April as part of measures to cushion the possible impact of the coronavirus on its business.
“We have a N70 billion bond programme. We are looking to tap into the market again given the low-interest rate environment,” Kristiansson told an analyst call.
“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 said it has seen steady growth in its food business and agro-business and that first-quarter revenue grew 15% to 154.6 billion naira.
The company has around N75.8 billion in net debt as at the first quarter.
Yields on short-term bills and bonds have fallen under 6 percent from double digits due to excess liquidity on money markets as foreign investors dump assets to repatriate funds.
The government is also providing stimulus to help businesses cushion the impact of the pandemic.
The company said it was pursuing an organic growth strategy and planned to expand its edible oil refinery and grow the reach of its animal feed products.
Flour Mills shares, which are down 24 percent so far from their January peak, traded flat on Monday at N18.20 each, valuing the company at N47.76 billion.
-With Reuters

Leave a comment

Your email address will not be published. Required fields are marked *

Sign For NewslettersFor News Updates Around The Globe!