The new year 2021 arrived with renewed hopes for the continued development of the Nigerian financial markets as corporates have already commenced with planning towards the achievement of their strategic goals and objectives. The Nigerian Commercial Paper (“CP”) market, even during the ‘high-points’ of the pandemic last year, has continued to provide succour to both private and public institutions as we begin the new year.
FMDQ Securities Exchange Limited (“FMDQ Exchange” or “the Exchange”) has through innovative evolution continued to avail its credible and efficient platform as well as tailor its Listings and Quotations services to suit the needs of issuers and its Registration Members (sponsors of the issue on FMDQ Exchange). Following the due diligence process, the Exchange, through its Board Listings and Markets Committee, has approved the quotation of the Total Nigeria PLC ₦2.25 billion Series 1 and ₦12.75 billionSeries 2 Commercial Papers under its ₦30.00 billion CP Issuance Programme and the Mixta Real Estate PLC ₦2.00 billion Series 32 Commercial Paper under its ₦20.00 billion CP Issuance Programme, as well as the registration of the Valency Agro Nigeria Limited ₦20.00 billion Commercial Paper Programme, on its platform.
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 vibrance of this sector and in turn the reactivation of the Nigerian economy. The issue attracted significant demand from a wide range of investors – resulting in a subscription level of over 4 times the initial issue size – a demonstration of investor confidence in the company.
Commenting on the quotation of the Issue, the Managing Director of Total Nigeria, Mr. 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 and commended 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 his delight that Total Nigeria has joined the growing list of blue-chip corporates who have embraced CP issuances in the Nigerian debt capital markets as a means of funding their working capital requirements. He also thanked the Board and Management of Total Nigeria for the opportunity given to Stanbic IBTC Capital to act as Sole Arranger, as well as Joint Dealer alongside FBNQuest Merchant Bank, to the ₦15.00 billion debut CP issuance under the Programme.
In the same vein., with double-digit inflation rates and soaring food prices compounded by the growing Nigerian population, it has become more 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. Valency Agro Nigeria Limited (Valency Agro), is incorporated in Nigeria as a private limited liability company under Valency International Pte Limited (Valency International) – an International commodity trading house with its presence in over 15 countries – deals in the sourcing, production, and trading of Agro and consumer food products. In his remarks, the Managing Director, Valency International Pte Ltd, Mr. Sunil Dhanuka, said “We are glad for the successful registration of Valency Agro’s ₦20.00 billion CP Issuance Programme. We also commend 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 endorse the evolution of FMDQ Holdings PLC (“FMDQ” or “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.
FMDQ Group is unwavering in its pursuit of 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.