FMDQ quotes N35bn worth of Access Bank Commercial Papers

FMDQ OTC Securities Exchange started the year 2017 on good footing, following Thursday quotation of Access Bank Plc’s Commercial Papers (CPs) on its platform.
The N35billion combined value of the quoted CPs –Series 1, 2, & 3 – is under a N100 billion Commercial Paper Programme of Access Bank Plc.
Commercial Paper is a money-market security issued (sold) by large corporates (financial and nonfinancial institutions) to obtain funds to meet their short-term debt obligations and is backed only by an issuing bank or company’s promise to pay the face amount on the maturity date specified on the note.
The N100billion Commercial Paper Programme Memorandum seen by BusinessDay shows that the net proceeds from each issue of CPs Notes under the Programme will be used solely to support the Issuer’s short-term funding requirements, “or as may otherwise be specified in the Applicable Pricing Supplement”.
The quoted Tranches of Commercial Papers (CPs) Note on FMDQ platform vary in maturities. They are: N8.45billion (18.35% Access 27-Feb-2017); N4.22billion (18.60% Access 30-May-2017); and N22.33billion (19.19% Access 25-August-2017).
The issuer established a N100billion Commercial Paper Issuance Programme under which it may from time to time issue Commercial Paper notes (CP Notes or Notes), denominated in Naira as agreed between the Issuer and each relevant Dealer and or the Joint Lead Arrangers –Coronation Merchant Bank Limited and Chapel Hill Denham respectively.
“The quotation of these Commercial Papers on this platform is a good start to the year for FMDQ”, said Herbert Wigwe, Group Managing Director/Chief Executive Officer, Access Bank Plc.
Access Bank, a Nigerian bank with global presence has seven banking subsidiaries: Access Bank (Ghana) Limited, Access Bank Rwanda, Access Bank (Gambia) Limited, Access Bank (Sierra Leone) Limited, Access Bank Zambia Limited, Access Bank (R.D. Congo) and The Access Bank UK Limited.
Bola Onadele Koko, Managing Director/CEO, FMDQ OTC Securities Exchange said at Access Bank Plc Commercial Papers Quotation that, “We are ensuring that the cost of listing on our platform is considerably down.”
He said that FMDQ is in discussion with Securities and Exchange Commission (SEC) for issuers to register short-term bonds with 1-3 years maturities.
“Also, the FMDQ is working on listing private company bonds. At FMDQ, we are very much concerned about providing liquidity for corporates. In 2017, derivatives will become very important to use. We are working on developing market for interest rate futures and T-Bills Futures,” Koko said.
These CP Notes quoted and traded Over-the- Counter (OTC) via FMDQ platform in accordance with the rules, guidelines and other regulation will settle from time to time via the Central Securities Clearing System Plc (CSCS).