| Bonds & Fixed Income |    1934 VIEWS  |
| Bonds & Fixed Income | |
| 1934 VIEWS | |
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Friday, January
15, 2021 / 8:17 AM / by FMDQ / Header Image Credit: FMDQ Academy
The new year 2021 arrived with renewed hopes for the continued
development of the Nigerian financial markets as corporates have already
commenced with planning towards the achievement of their strategic goals and
objectives. The Nigerian Commercial Paper ("CP") market, even during the 'high-points' of the pandemic last year, has continued to provide succour to
both private and public institutions as we begin the new year.
FMDQ Securities Exchange Limited ("FMDQ Exchange" or "the Exchange") has
through innovative evolution continued to avail its credible and efficient
platform as well as tailor its Listings and Quotations services to suit the
needs of issuers and its Registration Members (sponsors of the issue on FMDQ
Exchange). Following the due diligence process, the Exchange, through its
Board Listings and Markets Committee, has approved the quotation of the Total
Nigeria PLC N2.25 billion Series 1 and N12.75 billion Series 2 Commercial
Papers under its N30.00 billion CP Issuance Programme
and the Mixta Real Estate PLC N2.00 billion Series 32 Commercial
Paper under its N20.00 billion CP Issuance Programme,
as well as the registration of the Valency Agro Nigeria Limited N20.00 billion Commercial
Paper Programme, on its platform.
The debut issuance of Total Nigeria PLC (Total Nigeria)'s CP, following
a volatile period for the oil and gas industry as disrupted by the COVID-19
pandemic demonstrates innovation and confidence in the Nigerian debt capital
market (DCM) towards supporting the vibrancy of this sector and in turn the
reactivation of the Nigerian economy. The issue attracted significant demand
from a wide range of investors - resulting in a subscription level of over 4
times the initial issue size - a demonstration of investor confidence in the company.
Commenting on the quotation of the Issue, the Managing Director of Total
Nigeria, Mr. Imrane Barry, explained that "the Programme was set up to enable
the company further broaden its sources of capital by accessing funding from
the Nigerian debt capital markets, while also reducing its overall funding
costs". He thanked investors for supporting the company's debut Issue and
commended the financial advisers, Stanbic IBTC Capital Limited and FBNQuest
Merchant Bank Limited, for ensuring the success of the Issue despite the
challenging environment. Also commenting on the quotation,
Tokunbo Aturamu, Head of Debt Capital Markets, Stanbic IBTC Capital expressed
his delight that Total Nigeria has joined the growing list of blue-chip
corporates who have embraced CP issuances in the Nigerian debt capital markets
as a means of funding their working capital requirements. He also thanked the
Board and Management of Total Nigeria for the opportunity given to Stanbic IBTC
Capital to act as Sole Arranger, as well as Joint Dealer alongside FBNQuest
Merchant Bank, to the N15.00 billion debut CP issuance under the Programme.
In the same vein., with double-digit inflation rates and soaring food
prices compounded by the growing Nigerian population, it has become more imperative
to catalyse the country's agricultural value chain transformation in a bid to
drive increased and sustainable production of agricultural products as well as
foreign earnings through exports. Valency Agro Nigeria Limited (Valency Agro),
is incorporated in Nigeria as a private limited liability company under Valency
International Pte Limited (Valency International) – an International commodity
trading house with its presence in over 15 countries - deals in the sourcing,
production, and trading of Agro and consumer food products. In his remarks, the
Managing Director, Valency International Pte Ltd, Mr. Sunil Dhanuka, said "We
are glad for the successful registration of Valency Agro's N20.00 billion CP Issuance
Programme. We also commend FMDQ for the seamless process despite the COVID-19
pandemic and the various restrictions. In line with our vision to grow within
the agricultural value chain in Nigeria, Valency Agro is committed to ensure
the growth of the Agriculture sector through our deep involvement in Cashew,
Sesame, Cocoa and other produce. Proceeds from this CP Programme will be used
towards meeting the midterm working capital requirements of the various
agricultural produce and on value addition prior to export".
The registration and quotation of these CPs on FMDQ Exchange endorse the
evolution of FMDQ Holdings PLC ("FMDQ" or "FMDQ Group") into a world-class
vertically integrated financial market infrastructure group and its strategic
role as a market organiser, committed to advancing the growth of the Nigerian
financial market.
FMDQ Group is unwavering in its pursuit of product and market innovation
as well as stakeholder engagement, towards making the Nigerian financial market
globally competitive, operationally excellent, liquid and diverse, in line with
its GOLD Agenda. FMDQ continues to bring about revolutionary changes in the
Nigerian capital market through its exchange, clearing, depository and private
markets subsidiaries; providing a seamless process and value-chain for market
participants to commence and end their financial market transactions.
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