FMDQ Securities Exchange Limited has approved the registration of the ₦30bn Commercial Paper Programme of Julius Berger Nigeria Plc, a leading Nigerian company offering holistic services such as planning, design, engineering, construction, operation and maintenance of buildings, infrastructure and industry projects on its platform.
The Programme, which is sponsored by Stanbic IBTC Capital Limited (Lead Sponsor) and FCMB Capital Markets Limited – both Registration Member (Quotations) of FMDQ Exchange, will avail the Issuer, the opportunity to raise short-term finance from the Nigerian debt markets through CP issuances within the Programme limit.
Commenting on the deal, the Managing Director, Julius Berger, Dr. Lars Richter, expressed pleasure at “the establishment of its ₦30bn CP Issuance Programme on FMDQ Exchange. The establishment of the CP Programme will enhance Julius Berger’s long-term strategy to boost financial flexibility and strengthen its competitive advantage in the construction sector. Issuance of commercial papers will support the Company’s short-term capital and funding requirements, enabling the Company diversify funding sources and unlock more value for stakeholders.”
Equally speaking on the significance of the successful issuance, the lead sponsor of the CP Programme and a Registration Member (Quotations) of the Exchange, Stanbic IBTC Capital Limited, represented by its Chief Executive, Funso Akere, said his company was “pleased to have advised Julius Berger on the establishment of its inaugural ₦30.00 billion CP Issuance Programme, which will enable it access competitively priced short-term funding from institutional investors. Julius Berger plans to issue CPs on various tenors under the Programme in order to optimise its funding costs and diversify its funding sources.”
Also, the co-sponsor of the CP Programme, FCMB Capital Markets Limited, through the Head, Debt Solutions, Ikechukwu Omeruah, stated “FCMB Capital Markets Limited is pleased to have acted as co-sponsor to the registration of Julius Berger’s debut CP Programme on FMDQ Exchange. Julius Berger is a household name in the Nigerian lexicon, playing a prominent role in the development of the country’s infrastructure. The establishment of the CP Programme provides a platform for the Company to diversify sources of debt funding to include non-bank investors, thereby increasing resources available for strategic planning while also reducing average cost of borrowing.”