Thursday, 28th March 2024
To guardian.ng
Search

FMDQ admits FCMB’s N26 billion SPV bond

FMDQ OTC Plc, on Monday, admitted the FCMB Plc's ₦26 billion SPV fixed rate unsecured bond due for Nov 20, 2021, under the bank`s ₦100 billion debt issuance programme in its platform
FCMB Group Plc

FCMB Group Plc

FMDQ OTC Plc, on Monday, admitted the FCMB Plc’s ₦26 billion SPV fixed rate unsecured bond due for Nov 20, 2021, under the bank`s ₦100 billion debt issuance programme in its platform.

The development was on the heels of the listings of the N30.5 billion UBA bond, N15.54billion Stanbic IBTC bond, N4.8trillion FGN bonds and quotation of N2.8trillion Nigerian treasury bills respectively, on the OTC securities exchange.

Speaking at the ceremony, the Group Head, Business Development at FMDQ, Ms Tumi Sekoni pointed out that listing of debt securities on the OTC securities exchange provides a wide range of benefits across the debt market value chain, amongst which are global visibility, transparency, improved secondary market liquidity, price formation and benchmark pricing.

She noted that as an OTC securities exchange, focused primarily on the debt capital market, with a commitment to facilitate growth and development in the financial market, FMDQ remains resolute to promoting an efficient, transparent and well regulated market, which will attract and retain investors (domestic and foreign).

The Group Managing Director, FCMB Ltd, Ladi Balogun explained that the bond issue serves as tier 11 capital, which provides long term capital to support growth, as well as reinforces the bank’s commitment to its customer at this challenging times.

He said that another significance of listing the FCMB SPV bond on the FMDQ platform was 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 and realise their investment when necessary.

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.

He said the proceeds of the bond would be used to strengthen its capital base, enhance its capital adequacy ratio, expand distribution channels and infrastructure, as well as grow its risk assets. He explained that the issuance was 112 per cent subscribed, adding that the FCMB decided to accept only ₦26 billion.

Also speaking at the ceremony, the Executive Director, FCMB Capital Market Limited, Tolu Osinibi said the FMDQ platform has 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 looks forward to more of such initiatives.

0 Comments