By Peter Egwuatu
The first company that has been screened for listing on the Lagos Commodities and Futures Exchange (LCFE), Voriancorelli (VC), is seeking N20 billion through floating of Exchange Traded Notes (ETN) to operate optimally in the agriculture sector.
Vanguard gathered that the commodities aggregating company with strong background in digitization of commodities assets such as Paddy Rice, Sorghum, Soyabeans and maize has secured approval of its application to the LCFE’s Quotation Committee for listing any moment from now.
Addressing financial journalists in Lagos, its Chairman, Mr Bolaji Akinboro explained that listing of Voriancorelli would enable the company to access liquidity, operate under the Exchange’s rules and regulations as evidence of transparency and provide opportunities to create new forms of fungible and tradeable assets.
“ Voriancorelli is the enabling connector that bridges the gap between businesses within the Agricultural ecosystem, delivering sustainable value. We are called the ‘’matching company’’ because we primarily solve the problem of market linkage to make trading within the sector simple and scalable.
“Underpinning the problem of market linkage is liquidity: Whether in form of capital financing, credit, or grant. The cost and availability of this liquidity undercuts profitability for agribusinesses. Therefore, in collaboration with the LCFE, the strength of the capital markets will be brought to bear in agriculture for the first time.
“We are thus making the market for commodities work in Nigeria. Beyond this, we are also supporting the Commodities Exchange as a stakeholder in its critical role to be an arbiter of transparency, integrity and supervision that provides an independent view of the ecosystem and all other market participants for healthy collaboration” Akinboro said.
Corroborating him, the company’s Managing Director, Mr Rufus Udechukwu says that VC offers a commodities aggregation solution for agricultural commodities to key players by connecting them together via technology driven solutions to facilitate seamless transactions.
The LCFE’s Managing Director, Mr Akin Akeredolu-Ale expressed optimism about the impact of the various infrastructure being deployed by the Exchange under the supervision of the Securities and Exchange Commission (SEC) through a structured legal framework, operational framework and surveillance mechanism to create jobs, enhance operations of all stakeholders in the commodities value chain and grow the Gross Domestic Product GDP) of the Nigerian economy.
According to him, the commodities sectors are the primary sectors of an economy and once properly harnessed, they will have multiplier effects on production, manufacturing and by default the service and other sectors.
“We started with a vision to create an enabling environment for all the Commodity stakeholders to participate effectively for the development of the commodities value chain, ecosystem and the economy of the country. The Exchange is poised to deal in Exchange Traded Notes and not equities of listed companies.
“ The Commodity sector did not suffer setback under COVID-19 pandemic period as people must always consume commodities. Our commodities ecosystem is a combined one Trillion Dollar economy in the various asset classes comprising Oil and Gas, Solid Minerals and Agriculture) and remains largely untapped.
“ The Exchange is working hard with all the Dealing member Firms, Central Securities Depository, Storage facility Owners, Capital Market Operators, rating companies, certification agents and many other institutions for the listing of transparent, structured, contracts for trading, capital raising and the development of the Nigerian Commodities ” Akeredolu-Ale said.