Tuesday, July 28, 2015

FMDQ OTC lists N26bn FCMB bond

FMDQ OTC lists N26bn FCMB bond
First City Monument Bank (FCMB) Limited has listed its N26 billion Series 1, 7-Year 14.25 per cent Fixed Rate Unsecured Bond on the Financial Market Dealers Quotations (FMDQ) Over-the-Counter (OTC) Plc platform. The bond, which is due in the year 2021, is under a N100 billion debt issuance programme. FCMB Capital Markets Limited, the investment banking subsidiary of FCMB Group Plc, is the issuing house and sponsor of the bond. The listing stemmed from the previous listings of the N30.5bn UBA Bond, N15.54bn Stanbic IBTC Bond, N4.8trn FGN Bonds and quotation of N2.8trn Nigerian Treasury Bills respectively, on the OTC securities exchange.
Speaking during the listing ceremony, the Group Managing Director/ Chief Executive of FCMB Limited, Mr. Ladi Balogun, said: “The significance of listing the FCMB bond on the FMDQ platform was hinged on the availability of a readily accessible liquid market to the bondholders, where the value of their investments can easily be determined and monitored on a daily basis. It also provides a platform to realise their investment when necessary’’. He added: “The bond provides a long-term capital that will help us to reinforce our commitment to our customers’’.
Balogun commended FMDQ’s efforts towards creating more depth in the Nigerian debt market, while applauding the platform’s seamless processes and its drive to achieve market transparency by deploying technology driven initiatives. The Executive Director of FCMB Capital Markets Limited, Mr. Tolu Osinibi, said “In a relatively short space of time, FMDQ is clearly demonstrating significant value-add in improving the dynamism, efficiency and sophistication of Nigeria’s growing fixed income market.
The contribution of the FMDQ platform to improving market information, liquidity and transparency is already proven; these are critical success factors to the growth of Nigeria’s capital market’’. He added that as a registered member of FMDQ, FCMB Capital Markets was proud to be part of the journey, which the bank would continue to actively encourage its issuer clients to list their fixed income securities on the FMDQ platform and be part of the market transforming initiative.
The issuing house explained that the decision to list the bond on the platform of FMDQ is to enable bondholders access to a liquid market, where the value of their investments can easily be determined and monitored on a daily basis, as well as provide an opportunity for them to realise their investment when necessary.
The Group Head, Business Development at FMDQ, Ms. Tumi Sekoni, noted: “FMDQ, recognising the growth potential of issuers of debt in the Nigerian capital market, affords a remarkable opportunity for the issuers to raise the profile of their issues and access a deep pool of funds’’.

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