FMDQ admits Dangote Cement’s N50 billion debt instrument
The largest Commercial Paper (CP) notes’ issuance by a non-financial institution, hit the debt segment of the capital market, as FMDQ OTC Securities Exchange (FMDQ), at the weekend, admitted Dangote Cement Plc’s ₦50b on its platform.
The Series I and II CP issuance are part of Dangote Group’s ₦150 billion domestic debt programme, which follows that the resuscitation of the market segment by FMDQ in 2014, with transparency, price discovery, liquidity, efficient quotation processes, amongst others, being established now.
This has paved the way for issuers and investors to effectively and sustainably meet their funding needs, as well as contribute to the development of the nation’s debt markets.
The Managing Director/Chief Executive Officer of FMDQ, Bola Onadele, has applauded the issuer for the remarkable step taken, noting that the issuance would encourage other corporates and commercial entities to effectively tap the potential burgeoning CP market to finance their short-term funding needs.
”The entry of the Dangote Group to the Nigerian DCM, will not only re-ignite the appetite of local and foreign portfolio investors in the debt markets but is a very welcome development, as the criticality of the implementation of the Basel III regulations framework to strengthen the risk management of banks lays credence to the urgent need for financial market participants to effectively tap the debt markets for their funding needs.”
The Group Chief Executive Officer of the Dangote Cement Plc, Joseph Makoju, said FMDQ has significantly contributed to the development of the domestic debt capital market in Nigeria.
“By promoting transparency, governance, integrity and efficiency in the CP market, FMDQ is encouraging issuers like ourselves to explore alternative funding sources in the Nigerian capital markets.”
Delivering the registration member (Quotations) remarks, the Executive Director and Head, Debt Capital Markets, Kobby Bentsi Enchill, reaffirmed Stanbic IBTC Group’s commitment towards contributing to development of a world class capital market in Nigeria.
“The domestic capital markets are gradually deepening and growing in sophistication, as prospective issuers become aware of the various financing options available to them via the capital markets.
This is evidenced by the decision of Dangote Cement Plc to tap the CP market, being their inaugural issuance in the Nigerian DCM.
“At Stanbic IBTC, we partner with our clients to deliver holistic, innovative and cutting-edge financial solutions that help them to achieve their funding objectives. In doing so, we are able to bring the full weight of our franchise to support our clients, enabling them to achieve a transformed business and customer service experience.”
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