FMDQ Welcomes the Listing of ₦26.0bn FCMB SPV Bond Posted on: July 27, 2015

FMDQ OTC Securities Exchange Welcomes the Listing of ₦26.0bn FCMB Financing SPV Bond. FMDQ OTC PLC (FMDQ) records yet another achievement as it welcomes the FCMB Financing SPV PLC ₦26,000,000,000 Series 1, 7-Year 14.25% Fixed Rate Unsecured Bond under a ₦100,000,000,000.00 Debt Issuance Programme (the FCMB SPV Bond) to its platform.

This achievement immediately follows the listings of the ₦30.5bn UBA Bond, ₦15.54bn Stanbic IBTC Bond, ₦4.8trn FGN Bonds and quotation of ₦2.8trn Nigerian Treasury Bills respectively, on the OTC securities exchange. As has become the tradition with the debt-focused OTC securities exchange, a prestigious Listing Ceremony was held in honour of the FCMB Financing SPV bond. To which end, FMDQ played host to the issuer, represented by the Group MD/CEO FCMB Ltd., Mr. Ladi Balogun and the issuing house/sponsor of the bond, represented by the Executive Director, FCMB Capital Markets Ltd., Mr. Tolu Osinibi.

Speaking at the Ceremony during the Welcome Address, Ms. Tumi Sekoni, Group Head, Business Development at FMDQ noted that 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. Ms. Sekoni further intimated that listing of debt securities on the OTC securities exchange provides a wide range of benefits across the debt market value chain, amongst which are global visibility, transparency, improved secondary market liquidity, price formation and benchmark pricing.

Ahead of unveiling the FMDQ Bond Listing Scroll, the presentation of the FMDQ Bond Listing Plaque, and autographing of the FMDQ Bond Listing Wall of Fame, Mr. Balogun, whilst addressing the financial market, highlighted that the significance of listing the FCMB SPV Bond on the FMDQ platform is 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; as well as a platform to realise their investment when necessary. Also, Mr. 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 initiatives

FCMB utilised the proceeds of the bond in strengthening its capital base, enhancing its capital adequacy ratio, expanding its distribution channels and infrastructure and growing its risk assets with a view to enhancing its income. The issuance was 112% subscribed. However, the Management of FCMB decided to accept only ₦26 billion.

Also speaking at the Ceremony, Mr. Osinibi said the FMDQ platform has been instrumental by encouraging the application of international best practices in the local trading environment and in the provision of credible, real-time market information, which enables greater participation by market operators and significantly enhances liquidity. Mr. Osinibi expressed his excitement about market development initiatives driven by FMDQ which has led to the revival of the Commercial Paper Market, and looks forward to more of such initiatives.

Furthermore, the issuer, issuing house/sponsor and FMDQ, represented by a Member of the Board Listings and Quotations Committee, Mr. Bayo Adeyemo, alongside the MD/CEO, Mr. Bola Onadele, signed the FMDQ Bond Listing Register, following which the Bond Listing Certificate was presented to the issuer.

As an OTC securities exchange, focused primarily on the debt capital market, with a commitment to facilitate growth and development in the financial market through its efficient platform for the registration, listing, quotation and valuation of bonds, FMDQ remains resolute to promoting an efficient, transparent and well regulated market, which will attract and retain investors (domestic and foreign). The exchange’s initiatives to promote secondary market liquidity will contribute immensely to the growth in the overall domestic bond market. Issuers have the opportunity to leverage on the provisions of this unique exchange to meet their long term funding needs even as the financial markets become aligned with international best practices/standards.