Flour Mills Seeks SEC Nod For N20bn Bond To Refinance Short-Term Debt

The board of Flour Mills of Nigeria Plc, on Friday said it is already seeking the approval of the Securities and Exchange Commission (SEC) to issue up to N20bn in three and five-year bonds.
The issuance, which, is subject to appropriate pricing, will be Senior Unsecured Fixed Rate Bonds, having tenors or three and five years respectively, are part of the company’s previously approved N70bn issue programme.
According to a notice filed to the Nigerian Stock Exchange (NSE) by Joseph Umolu, the company secretary and director of legal services, proceeds of the bonds will be used to refinance existing short-term debt, besides further increasing the efficiency of its balance sheet.
The ultimate objective of the programme, he explained, is to maximize shareholders’ wealth.