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FMDQ Exchange Platform: NMRC, Flour Mills of Nigeria Float Bonds

FMDQ Securities Exchange Limited (FMDQ Exchange) has approved the Listing of the Nigerian Mortgage Refinance Company PLC (NMRC) ₦10.00 billion Series 3 Fixed Rate Bond under its ₦440.00 billion Bond Issuance Programme on its platform.

Earlier the Exchange also approved the Listing of the Flour Mills of Nigeria PLC (FMN) ₦4.89 billion Series 4 Tranche A and ₦25.00 billion Series 4 Tranche B Fixed Rate Bonds under its ₦70.00 billion Bond Issuance Programme.

The listings joins a host of other corporate securities issued on the FMDQ Exchange Platform to kick off the year 2021 in addition to Total Nigeria PLC, Valency Agro Nig. Ltd., and Mixta Real Estate PLC.

The Nigerian economic landscape and business environment has continued to witness disruptions following the COVID-19 pandemic even as the situation has seen corporates across multiple sectors re-evaluate their financing strategies going into the new year by tapping into the debt capital markets to efficiently raise funds to meet their business expansion dreams and working capital needs.

CEO, FMDQ OTC Securities, Bola-Onadele

In a statement, FMDQ noted that the Nigeria debt capital market (DCM) plays an important role in the efficient mobilisation and allocation of resources in the economy to effectively support corporates looking to expand their business operations noting that FMDQ Group remains steadfast in contributing towards the emergence of a resilient financial market in Nigeria.

“It is in this regard that FMDQ in its capacity as a leading market organiser of the Nigerian DCM has continued to provide stakeholders in the Nigerian capital market with a credible and robust platform for capital access, risk management and transfer of value.” The statement read.

Commenting on the listings, Ag Managing Director of FCMB Capital Markets Limited, Abimbola Kasim said the success of the transaction speaks to Flour Mills’ impressive operational and financial performance, and an affirmation of the confidence of investors in the bond which was subscribed overwhelmingly during a low interest rate environment. “Following this success, we expect Flour Mills and our other clients to continue to explore opportunities to raise funds from the Nigerian debt capital markets to diversify their funding sources.”

GMD/CEO, Flour Mills of Nigeria Plc., Omoboyede Olusanya

For his part, the Group Managing Director/Chief Executive Officer of Flour Mills of Nigeria Plc., Omoboyede Olusanya, said the proceeds of both bonds have been used entirely to refinance existing commercial paper notes also successfully issued during the pandemic.

The Managing Director of NMRC, Kehinde Ogundimu, also explained that the proceeds of the issue would be used to refinance existing and conforming mortgage loans, adding that the issuance demonstrates NMRC’s commitment to the provision of affordable liquidity to the mortgage market by attracting long-term funding into the housing finance industry from the capital markets.

For the sponsors of the transaction on the Exchange, DLM Capital Group the success of the deal indicates that investors have an appetite for long tenured assets and highlights their confidence in NMRC’s operating model. “We expect the impact on the mortgage industry to be far reaching, making home-ownership much more accessible to the average individual”.

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