FMDQ OTC Securities Exchange Admits N17.7bn Nigerian Breweries Commercial Paper Posted on: November 14, 2015

FMDQ OTC Securities Exchange Admits N17.7bn Nigerian Breweries Commercial Paper. Having successfully met the quotation requirements as contained in the FMDQ Commercial Paper (CP) Quotation Rules, and following the approval of the Board Listings and Quotations Committee of FMDQ OTC Securities Exchange (FMDQ), the OTC Securities Exchange is pleased to admit the quotation of the Nigerian Breweries PLC N17,709,445,000.00 Series 1 Commercial Paper (CP) Notes under its N100,000,000,000.00 Commercial Paper Issuance Programme (The Nigerian Breweries CP) on its platform.

As is the tradition with the OTC Exchange, a quotation Ceremony was held, with the issuer, Nigerian Breweries PLC (NB PLC), as the guest of honour, represented by the Finance Director, Mr. Mark Rutten, and the joint issuing houses (Registration Members (Quotations) of FMDQ), Stanbic IBTC Capital Limited and FBN Capital Limited, represented by Mr. Kobby Bentsi-Enchill (Head, Debt Capital Markets) and Mr. Kayode Akinkugbe (Managing Director/CEO), respectively.

Whilst congratulating NB PLC for quoting the first non-bank CP, Mr. Bola Onadele. Koko, Managing Director/CEO of FMDQ noted that as a securities exchange, FMDQ promotes credibility for quoted CPs, through a highly efficient registration process. He further added that CPs quoted on the OTC securities exchange gain access to the full complement of an FMDQ quotations service; which includes but not limited to the global visibility through its inclusion to the FMDQ Bloomberg E-Bond trading system and on the quotations page of the FMDQ website, as well as improved transparency drive which is characterised by continuous disclosure of relevant information (such as issuer, issuance type, outstanding value and issuer history) on instruments quoted on the FMDQ platform.

Ahead of the signing of the FMDQ Quotations Register and the presentation of the CP Quotation Certificate, Mr. Rutten, while making his address, said that the company is excited about the future of the planned CP issuance activity on FMDQ and the ever-growing benefits this would bring to the capital market.

Speaking about the transaction, following the presentation of the CP Quotation Tombstones to the Registration Members, Mr. Bentsi-Enchill stated that “increasing the number of CP issuances is the first step towards creating liquidity in secondary market trading of CPs. The second, and equally important step, is the quotation of the securities on FMDQ OTC Securities Exchange. We are exceptionally pleased to have worked with NB PLC in setting up its maiden CP Programme and successfully raising N17.7bn in the first series. We are also pleased to sponsor the quotation of the CP on the FMDQ OTC Securities Exchange. The decision by NB PLC to complement its short term funding via issuance in the money and capital markets is certainly laudable, and in so doing the company has demonstrated leadership as a pacesetter in the domestic debt capital markets”

Mr. Akinkugbe expressed his delight at having partnered with NB PLC in establishing its N100bn CP Programme, the largest ever by a Nigerian corporate and successfully arranging the first tranche of N17.7bnamidst general market volatility. He further stated that “the success of the transaction speaks to the high confidence the investing public has in the NB PLC brand and recognition of the issuer’s remarkable track record in the beverage industry. In addition, it is a reflection of the joint lead issuing houses distribution capability and depth in the fixed income market. We expect that the quotation of the Nigerian Breweries CP on FMDQ will provide investors with transparency, efficient price determination and improved liquidity”.

As a securities exchange and self-regulatory organisation, with a commitment to facilitate growth and development in the financial market and Nigerian economy at large, FMDQ is committed to promoting an efficient, transparent and well regulated market, which will attract and retain investors (domestic and foreign).