By Taofik Salako, Deputy Group Enterprise Editor
FMDQ Securities Alternate has additional deepened the secondary debt market with the admission of the historic debt points by Nigeria’s main corporates, MTN Nigeria Communications Plc and Dangote Cement Plc for buying and selling on its platform.
Dangote Cement listed its N100 billion debut bond, the biggest single debut company bond within the capital market whereas MTN Nigeria listed its N100 billion debut business paper (CP), the biggest debut issuance by any Nigerian firm.
MTN Nigeria, which had deliberate initially to boost N50 billion beneath its registered N100 billion CP programme recorded spectacular oversubscription of 400 per cent and thus determined to extend the provide measurement to the utmost restrict of N100 billion.
MTN Nigeria raised N20 billion beneath its sequence One 180-day CP at an efficient yield of 4.90 per cent. The telecoms firm raised N80 billion beneath its sequence Two 270-day CP at efficient yield of 5.95 per cent.
Dangote Cement’s maiden bond challenge was absolutely subscribed, the primary sequence beneath the corporate’s N300 billion shelf bond issuance programme.
A complete of 100 million items of N1,000 par worth of the Dangote Cement’s N100 billion Sequence One five-year Fastened Fee Senior Unsecured Bonds had been admitted.
Whereas the bond could be redeemed on the finish of its five-year tenor, it will pay fastened coupon twice yearly. The relevant coupon fee was 12.50 per cent.
Additionally, FMDQ Depository Restricted, the central depository of the FMDQ Group, additionally received the mandate as the only depository for the lodgement of the MTN Nigeria CP notes, along with being a joint depository for the Dangote Cement bond.
This gives securities with the environment friendly worth chain linkages, which the FMDQ vertically built-in construction ensures, in addition to credible asset servicing and dependable knowledge and knowledge, amongst others.
Chief Government Officer, MTN Nigeria Communications Plc, Mr. Ferdinand Moolman, stated the N100 billion CP would permit MTN Nigeria to broaden its sources of funding; combining its established traces of credit score with entry to capital market funding, which is able to decrease the corporate’s price of borrowing.
Chief Government Officer, Chapel Hill Denham, Mr. Bolaji Balogun, the sponsor of MTN Nigeria CPs on FMDQ Securities Alternate, stated the landmark transaction for MTN Nigeria was many occasions over-subscribed and priced tightly, indicating the corporate’s sturdy score with buyers.
Based on him, Chapel Hill Denham is happy to have launched an necessary new issuer into the nation’s debt market, attracting participation from a various orbit of particular person and institutional buyers.
Chief Government Officer, FMDQ Group, Mr. Bola Onadele-Koko expressed delight on the admission of the securities to FMDQ Alternate and FMDQ Depository noting that the admission has wider implications for the debt market.
Based on him, the market has been craving for company benchmarks for pricing and valuation of securities within the debt capital market, and coming at a time when the resilience of the Nigerian monetary market is being examined by the influence of the COVID-19 pandemic is much more commendable.
“The success of those issuances by the premier and largest enterprise conglomerate in Africa, Dangote Industries, by its subsidiary, Dangote Cement Plc, and the debut made into the Nigerian debt capital market by main telecommunications large, MTN Nigeria Communications Plc, lay credence to the untapped and nice potential of the capital market to assist sustainable growth in Nigeria, and the boldness of buyers, in addition to the dedication of FMDQ Group to empower the markets to ship prosperity to Nigeria and Nigerians,” Onadele-Koko stated.
He famous that the admission of those securities on FMDQ validates the modern and credible capital market options championed and effectively delivered by FMDQ, over the previous couple of years.
He added that consistent with its mandate to facilitate international competitiveness of the monetary market, FMDQ, by these admissions, has supplied the market and its various stakeholders – native and worldwide – the much-needed company benchmark for the bond and business paper markets.
“These high-value points won’t solely promote credible benchmark pricing and valuation within the debt capital market, however will foster investor confidence within the potential of the Nigerian capital market even at such a time as now, in view of the COVID-19 disaster.
Certainly, the admission of those securities to FMDQ Depository, has once more delivered energy of option to the buyers on the place to entrust their property, validating the foresight of Lagos State Authorities in selecting FMDQ Depository for its bond earlier within the 12 months,” Onadele.Koko stated.
Based on him, with FMDQ Alternate offering an environment friendly and dependable platform for the registrations, listings, quotations, and buying and selling of debt securities in addition to reporting of information and knowledge; FMDQ Clear Restricted making certain satisfactory danger administration and facilitating settlement finality; and FMDQ Depository offering a sturdy and safe securities depository for the Nigerian capital market, FMDQ Group has continued to offer the Nigerian monetary market a one-stop platform, enabled by knowledge and knowledge and expertise, for market members to start and finish their market transactions seamlessly and cost-efficiently.
He described FMDQ Group as Africa’s first vertically built-in monetary market infrastructure group, offering execution, danger administration, clearing, settlement and depository providers, in addition to knowledge and knowledge throughout the debt capital, overseas trade, and derivatives markets by its subsidiaries – FMDQ Alternate, FMDQ Clear, FMDQ Depository and FMDQ Non-public Markets Restricted.
Based on him, FMDQ’s mandate stays to make the Nigerian monetary market globally aggressive, operationally glorious, liquid, and various, consistent with its GOLD Agenda, offering the required assist to governments, corporates, and people by its unrivalled and environment friendly platform for capital entry, funding alternatives, worth switch and danger administration.