FMDQ admits FBNQuest Merchant Bank’s N7.34bn Series 19 CP
FMDQ admits Union Bank N2.58 billion Series 8 and N32.38 billion Series 9 CPs
The Board Listings and Markets Committee of the FMDQ has approved the listing of Commercial Papers from two of Nigeria’s money deposit banks, Union Bank and First Bank in quick succession in the opening days of July.
The Exchange said in a statement, “Following its due diligence process, the Exchange, through its Board Listings and Markets Committee, has approved the quotation of the FBNQuest Merchant Bank Limited N7.34bn Series 19 Commercial Paper (CP) under its N100.00 billion CP Programme, on its platform.”
The Point gathered that the net proceeds from this CP would be applied to supporting the issuer’s short term funding requirements.
This is coming on the heels of the approval of the quotation of the listing, the week before, of Union Bank’s N2.58 billion Series 8 and N32.38 billion Series 9 Commercial Papers under its N100.00 billion Commercial Paper Issuance Programme on the Exchange’s platform.
These admissions on the FMDQ Exchange, watchers observe are reflective of the potential of the Nigerian debt capital market and the level of confidence being demonstrated by both issuers and investors in the market.
The proceeds from the quotation of these issuances, co-sponsored by FMDQ Exchange Registration Member (Quotations) – Renaissance Securities (Nigeria) Limited – lead sponsor; Standard Chartered Capital & Advisory Nigeria Limited; and UCML Capital Limited – will be applied to supporting Union Bank’s short-term funding requirements, thus validating the Exchange’s mandate to provide a reliable platform to support the capital raising needs of the stakeholders.
The Chief Executive Officer of Union Bank, Emeka Okonkwo, said, “the series 8 and 9 commercial paper issuance under our N100.00 billion Domestic Debt Issuance programme is another strategic milestone in our bid to establish Union Bank as a leading financial institution in Nigeria.
Promising transparency and global best practices on the CPs, the Exchange said in a statement, “In line with the value proposition of FMDQ Exchange, the CPs, shall be availed global visibility (through the Exchange’s website and systems), governance, continuous information disclosure to protect investors’ interest and credible price formation, amongst other benefits derived from the FMDQ Exchange platform.”
It also said that “The Exchange has continued to avail its credible and efficient platform as well as tailor its Listing and Quotation services to suit the needs of issuers and its Registration Members (sponsors of issuances on FMDQ Exchange).”
The FMDQ also assured that “In keeping with its commitment to the development of the DCM, FMDQ Exchange shall continue to provide, in collaboration with market stakeholders, innovative and efficient services aimed at deepening and effectively positioning the Nigerian DCM for growth, in support of the realisation of a globally competitive financial market and vibrant economy.”
