FMDQ OTC Lists Pioneer Viathan Funding N10bn Power Bond

The FMDQ OTC Securities Exchange has listed the Viathan Funding Plc Series 1 N10 billion 16 per cent 10-year Senior Guaranteed Fixed Rate Bond on its platform.

This is another significant contribution inspiring confidence in the Nigerian markets as infrastructure development, slowly, but progressively, takes form. Viathan Group develops and operates off-grid power solutions in Nigeria and the bond will be first corporate infrastructure bond focused on addressing power generation challenges, amongst others, to be issued in Nigeria and listed on the OTC exchange.

Speaking during the listing ceremony, Vice President, Capital Markets Directorate at FMDQ, Tumi Sekoni, expressed pleasure at the pioneer listing of a power bond in Nigeria.

She said: “FMDQ, being especially desirous of unlocking capital for infrastructure and economic development in Nigeria, has again demonstrated its unflinching commitment in this regard by providing due diligence and availing its credible and efficient platform for the listing and trading of the Viathan Bond - the first-ever Power Bond to be issued in the Nigerian markets. FMDQ is indeed honoured to be the chosen platform for the listing of this Power Bond.”

In his comments, Chief Executive Officer, Viathan Funding Plc, Mr. Ladi Sanni, said: “It is with great pleasure that we celebrate the listing of the Viathan Bond. The success of the bond is evidence of the increasing appetite of local institutional investors for long term infrastructural debt instruments. The N10 billion bond is the first tranche in a N50 billion bond programme which would essentially help Viathan actualise its aggressive 200megawatts capacity expansion programme by 2021. We are happy about the investors’ confidence and reception to the Viathan bond and look forward to their support in subsequent bond issues.”

Representing the issuing house and sponsor of the bond on FMDQ, Mr. Temi Popoola of Renaissance Capital (Nigeria) Limited said: “It has been a source of tremendous pride working with Viathan on this landmark transaction. Whilst it is the first of its kind in many regards, the most important benefit is perhaps the signalling effect it gives to corporates in Nigeria that other funding sources are available to them.

Renaissance Capital, leveraging on its execution and distribution abilities, ended up with a deal that was over-subscribed and very well received by the local investor community.”

Also speaking, Managing Director/CEO of FMDQ, Mr. Bola Onadele. Koko, noted that infrastructure poses a major challenge to the realisation of the potential of the Nigerian economy, one which has not only stagnated economic development, but inhibited improvement in the standard of living of the Nigerian people.