FMDQ OTC Securities Exchange has recorded another feat with the admission of N7.96 billion Sterling Investment Management SPV bond.
The N7.96 billion represents series 1, 7-year at 16.50 per cent fixed rate unsecured bond under the company’s N65 billion debt issuance programme.
Speaking at the listing, Mr Abubakar Suleiman, the Executive Director, Sterling Bank Plc, the sponsor of the bond, said that the bank had accessed the bond market last in 2011.
Suleiman commended investors for the confidence placed in the institution by participating in the offer in spite the current volatility in the Nigerian financial market.
He also acknowledged FMDQ’s contribution to the growth of the Nigerian Debt Capital Market (DCM) by facilitating active secondary market trading.
Suleiman said that the bank was offering greater value to its esteemed investors by listing on FMDQ to enhance the liquidity of the bonds.
Ms Tumi Sekoni, FMDQ Vice-President & amp; Divisional Head, Marketing and Business Development, congratulated the issuer for successfully raising ₦7.96 billion from the Nigerian Debt Capital Market (DCM) in spite of the current economic climate.
Sekoni said that the listing would contribute to the growth of the Nigerian corporate bond market and as well renew confidence in the DCM.
She also assured all parties that FMDQ was continually refined and tailored to provide among others, a unique opportunity for issuers to raise the profiles of their issues and access a deep pool of capital.
According to her, listing on the platform will help issuers to meet their long-term funding needs even as investor confidence is promoted through the availed transparency, information disclosure, price formation and visibility.
Mr Niyi Omojola, Partner at Constant Capital Partners Ltd., the lead issuing house to the transaction, said that the company crafted a unique and innovative investment structure which enabled the Sterling SPV bond share in the same investment grade rating as Sterling Bank Plc.
Omojola said that the innovative structure protects investors by providing the Federal Government of Nigeria bonds-backed credit enhancement, while investing in the Tier II Note of Sterling Bank.
This innovation has allowed investors to benefit from an enhanced rating while providing Tier II capital to Sterling Bank PLC.
Omojola added that Stanbic IBTC, Vetiva Capital Management and SCM Capital acted as joint issuing houses to the issue.
FMDQ is committed to developing the Nigerian bond market through a highly efficient registration process, instituting requisite world-class standards to drive transparency, governance and credibility among others.
