The strong financial positions of the Flour Mill of Nigeria Plc (FMN) has propelled the firm to excellent credit rating and brand values.
Being one of the largest consumer conglomerates in Nigeria with operational capability in flour milling, sugar refinery, palm oil production, and packaging materials, the company controls significant market share across its business divisions.
The Group is also an active player in the Debt Capital Market, constantly assessing and seeking to optimise its costs of funding, leveraging its strong reputation for timely repayment at maturity.
Recently, the Group decided to tap into the market for its Series 3 Commercial Paper to raise funds to meet its working capital requirements in June 2023. The Series 3 was launched on June 23, 2023, to resounding feedback from the investing public. The Orderbook recorded N144.37 billion in bids which represent 262% oversubscription.
All investor classes were well represented on the order book with strong showings from Banks (39.8%) and Pension Fund Administrators (40.8%). The Group took N55bn at a 239 days maturity in this first tranche and is looking at launching a second tranche, to sequence the repayment patterns.
Speaking on the FMN’s established credit rating and record over the years, director, Group Treasury, and Investor Relations, FMN, , Mr. Titus O. Owoeye stated that, “for the past six decades, the Group has been driving local content development and investing significantly across its value chain. 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.”
FMN, he stressed, 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.
“It is worth noting that the success of the backward integration programme 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 said.
The FMN rating of “A- “by Augusto & Co and “A” by DataPro shows its strong financial position, extensive distribution network, and dominant market share in the Nigerian food industry.
The Group, however, plans to continue to leverage the capital markets to raise finance to support both short-term and long-term financing needs as one of its funding options.