FMDQ admits Forte Oil’s 9 billion bond on platform
FMDQ OTC Securities Exchange has admitted Forte Oil Plc’s ₦9.00 billion series 1, 17.50% fixed rate unsecured bond under the ₦50.00 billion issuance programme on its platform.
Despite the economic headwinds, the OTC Exchange has continued to promote initiatives and strategic alliances, aimed at deepening the debt capital markets, as the listing represents the first corporate bond issuance on FMDQ this year.
For joining the league of other top companies to raise capital from the domestic market, the bond listing would help increase Forte Oil’s global visibility and finance the firm’s expansion exercise particularly on the retail business.
The Vice President & Divisional Head, Marketing & Business Development at FMDQ, Ms. Tumi Sekoni, while speaking at the ceremony, held in Lagos on Tuesday, applauded the issuer on the success of the fund raising, noting that the listing would avail the Forte Oil bond unprecedented market transparency, unrivalled information disclosure, efficient price formation and improved global visibility, among other benefits, through FMDQ’s platform.
The Group Chief Executive Officer of Forte Oil Plc, Akin Akinfemiwa, explained that the listing of the bond on FMDQ OTC Securities Exchange is another remarkable milestone for the company.
According to him, the exercise demonstrates the immense potential of the Nigerian bond market as a source of alternative funding for corporates.
“It also reaffirms our commitment to transparent and timely corporate disclosures and liquidity of our issued corporate instruments be it equity or debt. In addition, we strongly believe this listing will provide opportunity for price discovery for our investors.”
The Group Chief Executive Officer, United Capital Plc, Mrs. Toyin Sanni, representing the sponsor of the bond, noted that given the impact of the foreign exchange market devaluation on the currency, it is clear that a lot of corporates need to access long term funding.
“We believe that due to the challenges corporates are facing because of the impact of the foreign exchange market devaluation on our currency, it is clear that a lot of corporates need to access long term funding at a fixed price. We feel that the debt capital market offers brilliant opportunities for such companies to refinance and lend in their existing obligation to raise fresh funding or expansion to meet their working capital requirement.