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Parthian Partners issues first short-term bond under FMDQ exchange

By Gordi Udeajah, Aba
11 August 2022   |   2:35 am
The issuance of a three-year fixed rate senior unsecured instrument represents the first short-term bond under the FMDQ Securities Exchange short-term bond framework and the first bond

FMDQ

Parthian Partners Limited has announced the successful issuance of its debut N10 billion bond.

The issuance of a three-year fixed rate senior unsecured instrument represents the first short-term bond under the FMDQ Securities Exchange short-term bond framework and the first bond by an inter-dealer broker in the Nigerian capital market.

The bond issuance follows the successful redemption of Parthian’s maiden ₦20 billion commercial paper issuance in November/December 2021.

The fully subscribed bond, issued at a coupon rate of 13.5 per cent has enjoyed exciting interest from a wide spectrum of institutional investors, a statement by the company said.

The success of the issuance is corroborated by Parthian Partners’ investment grade ratings, Bbb (stable outlook) and BBB+ (stable outlook) by Agusto & Co and DataPro, respectively. These highlight the company’s good funding profile, improving profitability, asset quality, support from the owners and strong capitalisation.

The bond, listed on the FMDQ Exchange, has Renaissance Capital as Lead Issuing House and Credit Rating Adviser, with CardinalStone Partners, Constant Capital and SCM Capital as joint issuing houses while PwC and KPMG are acting as reporting accountants and auditors, respectively. Funmi Roberts & Co are solicitors to the transaction.

Parthian intends to utilise the net proceeds of the bond issuance to increase liquidity in the Nigerian debt market by discounting the Federal Government of Nigeria (FGN) promissory notes and supporting the FGN bond market.

The company’s CFO, Olayinka Arewa, said: “Being Nigeria’s pioneer interdealer broker comes with the arduous responsibility of blazing the trail in providing liquidity in the fixed income market – one which Parthian Partners has embraced, and for which we have constantly sought innovative ways to maintain a high standard. We are the first IDB to issue a bond of this size and we plan on facilitating infrastructure development across the country by investing in FGN Promissory notes and the FGN Bond market. We recognise the efforts of the investor community in ensuring the success of this bond issuance and commit to upholding their confidence in us as we deliver on our strategic growth objectives.”