FMDQ OTC Admits Sterling Bank CP, FCMB SPV Plc Bond

The FMDQ OTC Securities Exchange has admitted the quotation of the Sterling Bank Plc N2.40 billion Series 1-3 Commercial Paper (CP) Notes, under its N100 billion CP Programme and the listing of the FCMB Financing SPV Plc N5.10 billion 7-year 17.25 per cent Series 3 Fixed Rate Unsecured Bond under its N100 billion Debt Issuance Programme, on its platform.

According to the exchange, the admittance of these securities, following due approval from the FMDQ Board Listings, Markets and Technology Committee, attests to the highly efficient time to market and uniquely tailored listings and quotations service offered by FMDQ. It said in the coming weeks, respective ceremonies will be held in honour of the issuers, Sterling Bank Plc and FCMB SPV Plc to commemorate these achievements.

FMDQ explained that from the continuous provision of invaluable information, to global visibility, improved secondary market liquidity, efficient price formation and unique transparency, the activities and value-adding services of the OTC exchange continue to be experienced by businesses, corporate and government entities with debt securities listed/quoted on it.

“As part of FMDQ’s commitment to organise, govern and enforce credibility and transparency in the debt capital market space, the OTC Exchange has, through its innovative practices and the concerted efforts of its stakeholders, positively influenced the competitiveness of the Nigerian financial markets. FMDQ shall continue to validate its operational mandate of aligning the markets within its purview to international standards, striving to ensure they emerge as globally competitive, operationally excellent, liquid and diverse. Through the continued support for institutional growth, the OTC Exchange shall invariably contribute its quota to rejuvenating the vibrancy of the Nigerian economy,” the exchange said.

The exchange last week said it was set to admit the pioneer listing of the $1.00 billion Federal Government of Nigeria (FGN) Eurobond on its platform. The FGN, on February 9, 2017, announced the pricing of its offering of $1.00 billion Notes (Eurobond) under its $1.00bn 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 firsttime 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.