FMDQ Welcomes Pioneer Corporate Bond Listing on its Platform. FMDQ OTC PLC (FMDQ), on April 8, 2015, welcomed the listing of the United Bank for Africa PLC N30.50bn Series 1: 7year 16.45% Fixed Rate Subordinated Unsecured Notes due in 2021 (the UBA Bond). This listing is the first corporate bond to be listed on the FMDQ platform following the approval of the FMDQ Bond Listing and Quotation Rules by the Securities and Exchange Commission (SEC) in December last year. To commemorate this momentous occasion, FMDQ hosted United Bank for Africa PLC (UBA)’s Group Managing Director, Mr. Phillips Oduoza, to the FMDQ Bond Listing Ceremony in honour of the pioneer listing. The Lead Issuing House and sponsor of the bond on FMDQ platform, United Capital PLC, was also represented at the ceremony by the Group CEO, Mrs. Toyin Sanni.
Highlights of this Ceremony included the unveiling of the UBA N30.5bn Bond Listing Scroll by Mr. Bola Onadele. Koko, MD/CEO, FMDQ OTC PLC and Mr. Phillips Oduoza, presentation of the UBA N30.5bn Bond Listing Plaque to the Issuer, autographing the FMDQ Bond Listing Wall of Fame by Mr. Oduoza and signing of the FMDQ Bond Listing Register.
The MD/CEO of FMDQ, Mr. Bola Onadele. Koko, commended the issuer for this epochal step and reiterated the Exchange’s commitment to facilitate growth and development in the financial market through its efficient platform for the registration, listing, quotation and valuation of bonds. This goal is driven by FMDQ’s “GOLD” (Global Competitiveness, Operational Excellence, Liquidity, and Diversity) agenda for the development of the Nigerian financial markets. Mr. Onadele highlighted that listing on FMDQ provides a wide range of benefits across the debt market value chain, positively impacting the Nigerian debt capital market (DCM) stakeholders i.e. issuers, issuing houses, investors, market makers and regulators. “FMDQ is a securities exchange and self-regulatory organisation registered by SEC, positioned to lead innovation and development in the Nigerian DCM space. It provides a platform for listing, quoting and trading of fixed income and currency products. Through its trading and surveillance systems, and the publication of the FMDQ Daily Quotations List, FMDQ has empowered the Nigerian bond market with price discovery, transparency and market integrity. We are delighted today to announce that FMDQ is taking these exceptional levels of information transparency even further, through the provision of continuous disclosure of pertinent information on debt issues listed on its platform; information including, among others, issue size, tenor, issue and maturity date, coupon, yield, issuer ratings, shelf prospectus, pricing supplement and issuer issue history.”
During the Listing Ceremony, Mr. Phillips Oduoza, Group Managing Director/CEO, United Bank for Africa (UBA) PLC said, “The bond listing on FMDQ is another pioneering step by UBA and the bank is always willing to explore new frontiers to meet with its growth needs. The N30.5 billion that has been raised from this bond issue will be used to provide long term funding to UBA customers across Africa and investors’ returns are guaranteed because we are focused on our long term growth strategy. UBA is one of Africa’s largest financial institutions, so we have no doubt that our bonds will be actively traded on the FMDQ.” He added that “FMDQ, which has become Nigeria’s foremost debt capital market, is here to revolutionise the market and listing our bond on this platform will provide domestic and foreign investors a high level of transparency and liquidity.”
Amongst the attendees at the Listing Ceremony was Mrs. Oluwatoyin Sanni, Group Chief Executive Officer of United Capital PLC, the Lead Arranger and Issuing House that sponsored the listing of the UBA Bond on FMDQ. Mrs. Sanni said “this is the largest corporate bond issued in the Nigerian Capital Market in 2014. UBA has again set the pace with the pioneer corporate bond dual listing in Nigeria, being the first company to simultaneously list its corporate bond on the FMDQ platform and the Nigerian Stock Exchange.” She further said that the UBA PLC bond will increase the investment vehicle open to investors in the Nigerian Capital Markets; which will further deepen the market. She reiterated the importance of the role played by FMDQ, and acknowledged them for providing an efficient debt capital market that Issuers can leverage to meet their long term funding needs.
According to the Group Head, Business Development, FMDQ, Tumi Sekoni, as Nigeria’s foremost debt capital securities exchange, FMDQ recognises the growth potentials of issuers of debt in the Nigerian capital market and thus provides them with a remarkable opportunity to raise the profile of their issues and access a deep pool of capital. Some benefits to the Nigerian DCM of listing on FMDQ include global visibility and transparency to the listed debts, improved secondary market liquidity, price formation and benchmark pricing, resulting in a more globally competitive capital market. An efficient, transparent and well regulated market, which FMDQ promotes, will attract and retain investors (domestic and foreign), further developing the Nigerian financial market, and by extension, the Nigerian economy.
Bonds admitted and listed on FMDQ are traded by its Dealing Members, the market makers to all classes of bonds thereby providing secondary market trading liquidity to the Nigerian bond market. Circa 99% of FGN bonds are traded on FMDQ and as part of its value-add to the Nigerian bond market specifically (and Nigerian fixed income market as a whole), FMDQ will be improving secondary market trading liquidity in the non-FGN bond market (i.e. corporate, sub-national etc. bonds) through its Fixed Income Specialists.