THE Federal Government of Nigeria (FGN) through the Debt Management Office (DMO) has given Diamond Bank Plc the nod to perform the functions of a Primary Dealer Market Maker (PDMM) in FGN Bonds.
Speaking at brief presentation ceremony held in his office in Abuja at the weekend, DMO Director-General, Dr. Abraham Nwankwo said the presentation exercise marked the final stage of the PDMM appointment process.
"Your appointment as PDMM is based on our expectation that you would be an active participant in both the primary and secondary markets, and that your activities will contribute to the attainment of the DMO's objectives which include, deepening the market, as well as, promoting efficiency and transparency in the market," he stated.
Nwankwo further stated that DMO believes that Diamond Bank Plc will make use of its large customer base and branch network to provide the much needed depth to the FGN Bond investor base and most importantly, support the DMO's mission to develop the domestic bond market through initiatives such as the introduction of new products.
In his acceptance speech, the Executive Director/Chief Financial Officer, Diamond Bank Plc, Mr. Ohis Ohiwerei, who represented the bank stated that Diamond Bank feels honoured to be licensed as a PDMM.
"It is a very important day for us in the bank and we appreciate it. I can assure you that the trust that DMO reposed on us will be rewarded. We are committed to the laudable ideals of DMO and the Federal Government of Nigeria and we will continue to support DMO's initiatives and products," he stated.
Ohiwerei further said that Diamond Bank would put its skills, experience and professionalism into use while transacting in the market. "We have what it takes to support the market and make it grow. We have the reach, capacity and technological muscle to drive the market. And I can tell you that this is apparently the best time to play in the market because it is a risk free investment and we will welcome Nigerians to take advantage of its potentials," he stated.
"In order to ensure that our customers and the general public enjoy the above benefits, Diamond Bank has put in place structures that will facilitate our customers' participation at the FGN Bond auctions. Customers can equally dispose the instruments in the secondary market anytime through the bank's market making capability," he said.
He maintained that bond markets play an important role in mobilising capital investments that are critical for economic development in the country, adding that an efficient bond market will help promote economic growth and reduce the risk of financial crises.
The approval for Diamond Bank to participate in the market came after extensive review of the operations and technical ability of the bank and its staff. The bank leverages on its specialty as a financial services institution with expertise in trading government debt securities to get the approval.