By Peter Egwuatu
FMDQ OTC Plc, yesterday recorded another milestone in the history of the Nigerian capital market as it listed N15.44 billion Stanbic IBTC bond on its the platform.
Speaking at the bond listing ceremony in Lagos, the Chief Executive Officer, FMDQ OTC Plc, Bola Onadele, said that the listing would go a long way to deepening the nation’s capital market.
He disclosed that the Stanbic IBTC bonds listed and admitted on FMDQ would be traded by Fixed Income Specialists who would act as market makers to the bonds and thus provide liquidity to the market. “FMDQ provides a platform for the registration, listing, quotation and trading of bonds and other fixed income securities,” said Onadele.
He said that the company would continue to empower the Nigerian bond market with price discovery, transparency and market integrity through market development initiatives.
Onadele said that listing and quotation on FMDQ provides a host of benefits across the debt market value chain, positively impacting stakeholders in the Debt Capital Market (DCM). “FMDQ’s value-add to DCM includes visibility and transparency to the listed/quoted debts, improved secondary market liquidity, benchmark pricing and price formation,” he added.
He added that FMDQ had made the nation’s capital market globally competitive with continuous disclosure of relevant information on fixed income issues listed on its platform.
The Managing Director of Stanbic IBTC Bank Plc, Yinka Sanni explained that the 10 year bond due in 2025, also qualifies as a tier 11 capital for the bank. According to him, the listing on the platform would avail foreign investors the opportunity to invest in the bond due to appropriate pricing.
He explained that the bank had witnessed tremendous transformation over the years with increased growth opportunities in its core areas of business, which includes investment banking, stockbroking and asset management. He said that the bond had increased the bank’s capitalisation level and would give the bank the capacity to increase more businesses and sustainability. He assured that the bond would translate to higher returns and profitability to shareholders. According to him “ The need for the capital is to enhance our capital base because the bond qualifies us as a tier II capital, it’s a ten year bond. We are delighted of the success of bond raised and we believed that listing the bond on FMDQ exchange is very significant as it gives us the privilege to join this very reputable and growing exchange in the country.
“We are attracted to this exchange particularly because of the strength the exchange offers. The Exchange in a transparent manner offers the bond price at market determine. This exchange is very liquid. We are happy to join the legend of other top companies that are listed on the exchange.”