By Nkiruka Nnorom

FMDQ OTC Securities Exchange Plc has admitted Lapo Micro-finance Bank Plc N3.15 billion bonds for trading on its platform.

The Series-1 bond, under the bank’s N20 billion bond issuance programme, marked the first micro-finance bank bonds to be listed on the Exchange.

The bond has five years tenor and is priced at17.75 percent.

Speaking at the listing in Lagos yesterday, Dr. Godwin Ehigiamusoe, Managing Director, LAPO Micro-finance Bank Limited, noted that the demand for capital from micro, small and medium businesses is high, saying that as a pro-poor financial institution, LAPO Micro-finance is committed to the social and economic empowerment of low income households through provision of access to responsive financial services on a sustainable basis.

“With excellent corporate governance, experienced management, committed staff and extensive footprints across Nigeria, LAPO Micro-finance is poised to deliver its core mandate of enhancing financial inclusion by continuously tapping the Nigerian debt capital market to raise capital to improve lives of the underprivileged,” he said.

Speaking earlier in her welcome remarks, Ms. Jumoke Olaniyan, Associate Vice President, Market Architecture Division, FMDQ, applauded the issuer for having successfully raised N3.15 billion from the domestic capital market and for setting the pace for other micro-finance banks planning to raise capital in the debt capital market space.

She further commended the issuer for joining the league of corporate entities whose debt profiles have been raised via the value-packed listings and quotations service offered by FMDQ.

Also speaking, Mr. Jude Chiemeka, Managing Director, United Capital Securities, the co-sponsors to the issue, said: “we are delighted to have acted as financial adviser and issuing house in the successful execution of the LAPO MFB SPV Series 1 bond issue, which is the first of its kind in the micro-finance industry. Coming from a successful 2017, United Capital remains committed to making significant contributions to the OTC Exchange and to the success of our esteemed clients through our expertise in capital raising.

“We believe listing this instrument on the exchange will pave the way for other micro-finance banks and allow them to explore other funding sources available, thereby establishing a robust domestic capital markets.”

 

 

Disclaimer

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