Despite the challenges currently beleaguering the Nigerian business environment, FSDH Merchant Bank Limited (FSDH) has successfully raised from the Nigerian debt capital market (DCM), circa N14.98bn worth of commercial papers (CPs)
The CPs represent series 1 and 2 under FSDH’s ₦30.00bn CP Issuance Programme and have also been successfully admitted and quoted on FMDQ OTC Securities Exchange (FMDQ). A Quotation Ceremony was held at the FMDQ offices on Thursday, October 27, 2016, to commemorate and formally welcome the issues.
Present at this Ceremony were Mr. Rilwan Belo-Osagie, Managing Director, FSDH Merchant Bank Limited, representing the issuer of the CP; Mr. Kobby Bentsi-Enchill, Executive Director and Head, Debt Capital Market, Stanbic IBTC Capital Limited, the FMDQ Registration Member (Quotations) and sponsor of the issues on the platform; and the CP Arrangers (Stanbic IBTC Capital Limited, United Capital PLC and FSDH), among others. Highlights of the Ceremony included the signing of the FMDQ CP Quotations Register, the presentation of the FMDQ CP Quotations Certificate to the issuer and the CP issuer’s autograph, among others.
Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ, whilst congratulating FSDH, remarked that the successful issuance of the CPs at such a time was a testament to the increasing confidence in the possibilities of the Nigerian DCM. According to him, “At FMDQ, we are positive about the potential of a fully-functional DCM in building a sustainable economy, and will continue to support and streamline the market processes and infrastructure, as may be necessary, to support issuers and investors, towards achieving an operationally excellent and competitive DCM.”
Ahead of the signing of the FMDQ CP Quotations Register and the presentation of the FMDQ CP Quotations Certificate, Mr. Rilwan Belo-Osagie, in his address stated that, “The CPs are being quoted on the FMDQ platform in line with the requirements of the Central Bank of Nigeria (CBN), but more importantly, to facilitate active secondary market trading of the CPs. FSDH was very active in the CP market prior to its suspension by the CBN in 2009 and the quotation of the N14.98bn Series 1 and 2 CP serves as an opportunity for FSDH to restate its presence and significance in the money market, and participate in the development and deepening of the CP market under the CBN’s revised regulations. The establishment of FMDQ has contributed significantly to the growth in liquidity and transparency of the Nigerian fixed income market and FSDH is committed to supporting the growth of this market through the FMDQ platform.”
Also speaking at the Ceremony, Mr. Kobby Bentsi-Enchill noted that “We are excited about the growth in the CP market. Over the past two years, we have witnessed a remarkable increase in the number of issuances in the CP market and we are proud to be pivotal to the development of this market. An increase in the number of CP issuances with a quotation on the FMDQ platform is vital to creating liquidity in secondary market trading of CPs. We are exceptionally pleased to have worked with FSDH in setting up its maiden CP Programme and the successful debut issuance of N14.98bn across Series 1 and 2. We are also pleased to sponsor the quotation of the FSDH CP on the FMDQ platform. FSDH has demonstrated its commitment to the growth of the fixed income market by its decision to complement its funding requirements by accessing the money and capital markets in Nigeria.”
With its robust and efficient platform for the registration, listing and quotation of debt securities (bonds, CPs, mutual funds, etc.), FMDQ has progressively continued to champion and effectively support initiatives aimed at boosting the growth and development of the Nigerian DCM and economy at large. From product and market development, to surveillance and regulation, FMDQ actively collaborates with its varied stakeholders to ensure its mandate of making the Nigerian financial market globally competitive is realised.