… as FCMB lists N26bn SPV bond on OTC platform
Year-to-Date (YtD), FMDQ OTC plc has successfully attracted about N8.3 trillion worth of corporate and government debt instruments now listed on its platform.
This comes as FMDQ OTC Securities Exchange, Monday, welcomed the listing of FCMB Financing SPV plc N26 billion bond to its platform.
The bond is Series 1, 7-Year 14.25 percent Fixed Rate Unsecured Bond under a N100 billion Debt Issuance Programme (the FCMB SPV Bond).
This comes on the heels of listings of the N30.5 billion UBA Bond, N15.54 billion Stanbic IBTC Bond, N4.8 trillion FGN Bonds, and quotation of N2.8 trillion Nigerian Treasury Bills, respectively, on the OTC securities exchange.
As it has become the tradition with the debt-focused OTC securities exchange, a prestigious Listing Ceremony was held in honour of the FCMB Financing SPV bond.
To which, FMDQ played host to the issuer, represented by Ladi Balogun, group managing director/CEO, FCMB Limited, and the issuing house/sponsor of the bond, represented by Tolu Osinibi, executive director, FCMB Capital Markets Limited.
While speaking at the ceremony, Tumi Sekoni, group head, Business Development, FMDQ, noted that FMDQ, recognising the growth potential of issuers of debt in the Nigerian capital market, afforded a remarkable opportunity for the issuers to raise the profile of their issues and access a deep pool of funds.
Listing of debt securities on the OTC securities exchange provides a wide range of benefits across the debt market value chain, among which are global visibility, transparency, improved secondary market liquidity, price formation and benchmark pricing, she said.
Ahead of unveiling the FMDQ Bond Listing Scroll, the presentation of the FMDQ Bond Listing Plaque, and autographing of the FMDQ Bond Listing Wall of Fame, Balogun, while addressing the financial market, highlighted the significance of listing the FCMB SPV Bond on the FMDQ platform, hinged on the availability of a readily accessible liquid market to the bondholders, where the value of their investments can easily be determined and monitored on a daily basis, as well as a platform to realise their investment when necessary.
Also, Balogun commended FMDQ’s efforts towards creating more depth in the Nigerian debt market while applauding the platform’s seamless processes and its drive to achieve market transparency by deploying technology initiatives.
Osinibi said the FMDQ platform had been instrumental by encouraging the application of international best practices in the local trading environment and in the provision of credible, real-time market information, which enables greater participation by market operators and significantly enhances liquidity.
Osinibi expressed his excitement about market development initiatives driven by FMDQ, which has led to the revival of the Commercial Paper Market, and looked forward to more of such initiatives.
FCMB utilised the proceeds of the bond in strengthening its capital base, enhance its capital adequacy ratio, expand its distribution channels and infrastructure and grow its risk assets with a view to enhancing its income.
The issuance was 112 percent subscribed.
However, the management of FCMB decided to accept only N26 billion.
The issuer, issuing house/sponsor and FMDQ, represented by a member of the Board Listings and Quotations Committee, Bayo Adeyemo, alongside Bola Onadele, CEO, FMDQ, signed the FMDQ Bond Listing Register, following which the Bond Listing Certificate was presented to the issuer.
As an OTC securities exchange, focused primarily on the debt capital market, with a commitment to facilitate growth and development in the financial market through its efficient platform for the registration, listing, quotation and valuation of bonds, FMDQ remains resolute to promoting an efficient, transparent and well regulated market, which will attract and retain investors (domestic and foreign).
The exchange’s initiatives to promote secondary market liquidity will contribute immensely to the growth in the overall domestic bond market.
Issuers have the opportunity to leverage on the provisions of this unique exchange to meet their long-term funding needs, even as the financial markets become aligned with international best practices/standards.
Iheanyi Nwachukwu
