Stanbic IBTC lists N15.44 billion bond on FMDQ platform

FMDQ OTC Plc, yesterday witnessed another bond listing on the platform, with the listing of  Stanbic IBTC bank Plc’s N15.44 billion bond.

Speaking at the bond listing ceremony in Lagos yesterday, the Managing Director , FMDQ OTC Plc, Bola Onadele,  said that the listing would go a long way to deepening the nation’s capital market.

According to him, bonds listed and admitted on FMDQ would be traded by Fixed Income Specialists who would act as market makers to these bonds thus providing trading liquidity to the bond.

“FMDQ provides a platform for the registration, listing, quotation and trading of bonds and other fixed income securities,” said Onadele.

He said that the company would continue to empower the Nigerian bond market with price discovery, transparency and market integrity through market development initiatives.

Onadele said that listing and quotation on FMDQ provides a host of benefits across the debt market value chain, positively impacting stakeholders in the Debt Capital Market (DCM).

“FMDQ’s value-add to DCM includes visibility and transparency to the listed/quoted debts, improved secondary market liquidity, benchmark pricing and price formation,” he added.

He added that FMDQ had made the nation’s capital market globally competitive with continuous disclosure of relevant information on fixed income issues listed on its platform.

The Chief Executive Officer of Stanbic IBTC Bank Plc, Yinka Sanni explained that the 10 year bond due in 2025, also qualifies as a tier 11 capital for the bank.
According to him, the listing on the platform would avail foreign investors the opportunity to invest in the bond due to appropriate pricing.

He explained that the bank had witnessed tremendous transformation over the years with increased growth opportunities in its core areas of business, which includes investment banking, stockbroking and asset management.

He said that the bond had increased the bank’s capitalisation level and would give the bank the capacity to increase more businesses and sustainability.

He assured that the bond would translate to higher returns and profitability to shareholders.

“Over the years we have seen great growth, transformation and what that entail was that we have seen an increase in the number of clients. At the moment we are present in 180 locations in nationwide, present in every state of Nigeria.

“We have over a million client, retail bank business still growing. Our leading business is investment banking, stockbroking and asset management will continue to grow.

The need for the capital is to enhance our capital base because the bond qualifies us as a tier II capital, it’s a ten year bond. We are delighted of the success of bond raised and we believed that listing the bond on FMDQ exchange is very significant as it gives us the privilege to join this very reputable and growing exchange in the country.

“We are attracted to this Exchange particularly because of the strength the exchange offers. The Exchange in a transparent manner offers the bond price at market determine. This exchange is very liquid. We are happy to join the legend of other top companies that are listed on the exchange. “