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FMDQ Opens 2021, Admits N35bn Commercial Paper Programmes

The New Year 2021 opened on the FMDQ Securities Exchange Limited, with its Board Listings and Markets Committee, approving the admission of Commercial Papers worth N35.002bn for three companies.

This, the exchange said in a statement on Thursday, the fact that corporate have started planning towards the achieving their strategic goals and objectives is a signal of the renewed hopes for the continued development of the Nigerian financial markets. It

A breakdown to the quotations  on its platform are the ₦2.25bn Series 1 and ₦12.75bn Series 2 Commercial Papers of Total Nigeria Plc, under its ₦30bn CP Issuance Programme and the Mixta Real Estate PLC ₦2bn Series 32 CP, under its ₦20bn Issuance Programme, as well as the registration of the Valency Agro Nigeria Limited ₦20bn Programme.

According to the FMDQ, the Nigerian CP market, even during the ‘high-points’ of last year’s pandemic continues to provide succour to both private and public institutions, a trend it said is continuing into the New Year.

This was linked to the continued innovative evolution by FMDQ Securities Exchange Limited to avail its credible and efficient platform, in addition to tailoring its Listings and Quotations services to suit the needs of issuers and its Registration Members (sponsors of the issue on FMDQ Exchange).

“The debut issuance of Total Nigeria PLC (Total Nigeria)’s CP, following a volatile period for the oil and gas industry as disrupted by the COVID-19 pandemic demonstrates innovation and confidence in the Nigerian debt capital market (DCM) towards supporting the vibrancy of this sector and in turn the reactivation of the Nigerian economy,” FMDQ stressed.

The Total Nigeria issue, it continued, attracted significant demand from a wide range of investors – resulting in a subscription level of over four times the initial issue size – a demonstration of investor confidence in the company.

Commenting, the Managing Director of Total Nigeria, Imrane Barry, explained that “the Programme was set up to enable the company further broaden its sources of capital by accessing funding from the Nigerian debt capital markets, while also reducing its overall funding costs”.

He thanked investors for supporting the company’s debut issue, while commending the financial advisers, Stanbic IBTC Capital Limited and FBNQuest Merchant Bank Limited, for ensuring the success of the Issue despite the challenging environment.

Also commenting on the quotation, Tokunbo Aturamu, Head of Debt Capital Markets, Stanbic IBTC Capital expressed delight that Total Nigeria has joined the growing list of blue-chip corporates that have embraced CP issuances in the Nigerian debt capital markets as a means of funding their working capital requirements.

Stanbic IBTC Capital acted as Sole Arranger, and Joint Dealer, alongside FBNQuest Merchant Bank, to the ₦15bn debut CP issuance under the Programme.

With double-digit inflation rates and soaring food prices compounded by the growing Nigerian population, FMDQ also noted the imperative to catalyse the country’s agricultural value chain transformation in a bid to drive increased and sustainable production of agricultural products as well as foreign earnings through exports.

Also commenting, the Managing Director, Valency International Pte Ltd, Sunil Dhanuka, expressed gladness at the successful registration of its ₦20bn CP Issuance Programme, commending “FMDQ for the seamless process despite the COVID-19 pandemic and the various restrictions.

“In line with our vision to grow within the agricultural value chain in Nigeria, Valency Agro is committed to ensure the growth of the Agriculture sector through our deep involvement in Cashew, Sesame, Cocoa and other produce. Proceeds from this CP Programme will be used towards meeting the midterm working capital requirements of the various agricultural produce and on value addition prior to export”.

The registration and quotation of these CPs on FMDQ Exchange, the exchanged added, endorses the evolution of FMDQ Holdings PLC (FMDQ Group) into a world-class vertically integrated financial market infrastructure group and its strategic role as a market organiser, committed to advancing the growth of the Nigerian financial market.

The statement stressed the group’s unwavering commitment to pursuing “product and market innovation as well as stakeholder engagement, towards making the Nigerian financial market globally competitive, operationally excellent, liquid and diverse, in line with its GOLD Agenda.”

FMDQ continues to bring about revolutionary changes in the Nigerian capital market through its exchange, clearing, depository, and private markets subsidiaries; providing a seamless process and value-chain for market participants to commence and end their financial market transactions.

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