Friday, November 18, 2016/5.18 PM /Proshare Markets
As the extended negative sentiment and nose-diving continue to make the equities market look unattractive to issuers, they seem to have found solace in the bond market as quoted firms have now turned to the fixed income market as an alternative source of capital raising.
Latest of such companies is Forte Oil Plc which recently completed the raising of a N9bn series 1: 5-year 17.50% fixed rate bond which is expected to mature in 2021. This is a first series of a N50bn bond issuance programme.
The company stated that the proceed of the bond raising will be used to refinance its existing short term commercial bank loan obligations and also to finance its retail outlet expansion.
Also, Access Bank Plc in October, 2016 successfully completed the raising of a US$300m Eurobond which the bank promised to use in refinancing its US$350 million Eurobond which is maturing in July 2017 as part of a US$1 billion global medium term note programme.
Other bank/company that have also raised capital in the bond market in the past are UBA Plc and UPDC.
1. Forte Oil Plc raises N9bn 5year Fixed rate Bond
2. Access Bank Plc Successfully Raises US$300m Eurobond
3. FMDQ Welcomes Pioneer Corporate Bond Listing on its Platform; UBA Bond
4. UPDC Plans N30bn Bond Issuance