Breaking News
Translate

Lagos State govt set to list N47bn bond on FMDQ

By Nkiruka Nnorom

The Lagos State Government has concluded plans to list its N47 billion bonds on the FMDQ Securities Exchange Plc platform.

The listing of this bond on this platform will enable investors to trade on it on daily basis before due date.

The bond, which is series 1of the state’s N500 billion debt issuance programme, is a 7 year 16.50 per cent fixed rate bond due 2023. This marks the first sub-national bonds issued in the Nigerian Debt Capital Market, DCM, and listed on FMDQ in 2017 and has, therefore, paved way for other sub-national issues.

The OTC Exchange said in a statement that the Lagos State government has formally joined the league of issuers to benefit from the tailored FMDQ listings and quotations service, including all the benefits availed from a listing on FMDQ.

It noted that to align the standards in the Nigerian market to those of the model markets around the world, it is currently providing permitted trading status for about N225 billion of the previously issued bonds by the Lagos State Government on its platform.

It added that it has continued to demonstrate its full commitment of making the Nigerian DCM robust and deep, through its capacity as the DCM market organiser and frontline regulator.

“Outstanding value delivery, as continues to be the focus of the OTC Exchange, was delivered through the efficient and swift listing process which was availed to the issuer and the sponsor of the listing on FMDQ, the Registration Member (Listings), Chapel Hill Denham Advisory Partners Ltd.

“As a DCM-focused OTC Exchange, FMDQ facilitates growth and development in the debt capital markets, effectively cascading this to the Nigerian economy through the direct and indirect initiatives generated and implemented.

Through its efficient platform for the registration, listing, quotation and valuation of bonds, the OTC Exchange has significantly improved transparency, and integrated the domestic and international markets through enhanced trade visibility, improved market surveillance, global presence and competitiveness, enhanced secondary market liquidity and effective price formation,” the OTC Exchange said.

“Not resting on its laurels, FMDQ, through the requisite systems that promote operational excellence, and its timely and market-oriented product innovation strategies that has seen the emergence of the short-term bonds, among other debt securities, supports the corporate and government issuers towards maximising the potential of their respective businesses and institutions via the Nigerian DCM,” it said.

 


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.