UPDATE 1-Flour Mills of Nigeria eyes bond sale within two months

(Adds quotes, details)
By Chijioke Ohuocha
ABUJA, Aug 17 (Reuters) - Flour and pasta maker Flour Mills
of Nigeria FLOURMI.LG plans to issue a bond within the next
two months as part of a 70 billion naira ($184 million)
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 sold 30 billion naira in commercial paper in
April, it said, part of measures to cushion the possible impact
of the coronavirus 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 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 75.8 billion naira in net debt as at
the first quarter.
Yields on short-term bills and bonds have fallen under 6%
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 18.20 naira each,
valuing the company at 47.76 billion naira.

($1 = 381.00 naira)