FMDQ Set to List Federal Government of Nigeria $1bn Eurobond
The FMDQ OTC Securities Exchange has said it is getting set to admit the pioneer listing of the $1.00 billion Federal Government of Nigeria (FGN) Eurobond to its platform. The FGN, on February 9, 2017, announced the pricing of its offering of $1.00 billion Notes (Eurobond) under its $1.00 billion Global Medium-Term Note Programme.
The issuance of the $1.00 billion FGN Eurobond is aimed at fostering economic development and will serve to rejuvenate the vibrancy of the nation’s foreign exchange (FX) market. Remarkably so, this is the first-time the sovereign’s Eurobond will be considered for listing on a domestic exchange, following the nation’s first and second outings to the international capital markets in 2011 and 2013 respectively.
According to FMDQ, this most commendable consideration follows the decision of the Debt Management Office (DMO), Nigeria, (the authority under which the FGN issues Bonds and Treasury Bills) and the Ministry of Finance to list the Eurobond on an efficient domestic securities exchange such as FMDQ to deepen and support the development of the local DCM.
“In streamlining its processes and ensuring an efficient time to market for debt securities, FMDQ, being Nigeria’s foremost debt capital-focused OTC securities exchange has continued to provide a highly resourceful platform for the registration, listing of Bonds (sovereign, agency, sub-national, corporate, supranational, as well as Eurobonds and Sukuk), funds and the quotation of c commercial papers, treasury bills and other short-term securities as may arise from time to time, to meet the needs of the market participants,” the exchange said.
Whilst currently providing improved transparency, effective price formation and enhanced secondary market liquidity through its dealing members, who are responsible for 99 per cent of the secondary market trading activity in FGN Bonds and Nigerian Treasury Bills on the exchange, FMDQ noted in admitting the $1.00 Eurobond for listing and trading, it will continue to end its itself as a worthy and operationally excellent platform, serving as the point of integration between the domestic and international markets.
The OTC exchange, since its debut into the Nigerian financial market landscape, has already granted permitted trading status for $1.50 billion of the previously issued FGN Eurobonds and $3.15 billion of Eurobonds issued by Nigerian companies.
With its audacious vision to be number one in the fixed income and currencies markets in Africa by 2019, the listing and eventual trading of the FGN Eurobonds on FMDQ, the first of its kind in the nation, will see the securities gain access to the full complement of the FMDQ Listings and Quotations service, which includes efficient clearing and settlement structures, unprecedented transparency, and improved network effects, among others.