FMDQ Admits ₦7.96bn Sterling Investment Management SPV PLC Bond

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By Chioma Obinagwam

FMDQ OTC Securities Exchange has welcomed another listing – Sterling Investment Management SPV PLC ₦7.965 billion Series 1, 7-Year 16.50 per cent Fixed Rate Unsecured Bond, under a ₦65.00 billion Debt Issuance Programme (“the Sterling SPV Bond”) on its platform. To formally welcome this listing, a Ceremony was held on Monday, November 21, 2016 at the FMDQ offices.

The Exchange played host to the issuer, represented by Mr. Abubakar Suleiman, Executive Director, Sterling Bank PLC (the Bank), as well as the sponsor of the bond on FMDQ’s platform, the Registration Member (Listings), represented by Mr. Ike Echeruo, Managing Partner, Constant Capital Partners Ltd., amongst others.

The issuer, sponsor of the bond on the Exchange and FMDQ, signed the FMDQ Bond Listings Register, following which an FMDQ Bond Listing Certificate was presented to the issuer.

Other key highlights included the demonstration of FMDQ’s appreciation to the issuer and sponsor for their contributions to the development of the Nigerian debt capital market (DCM) in the form of the unveiling of the FMDQ Listing Scrolls, presentation of the FMDQ Listing Plaques, and the autographing of the FMDQ Bond Listing Wall of Fame.

Ms. Tumi Sekoni, Vice President & Divisional Head, Marketing & Business Development at FMDQ, whilst delivering the welcome address, congratulated the issuer for successfully raising ₦7.96bn from the Nigerian DCM, notwithstanding the current economic climate. She further highlighted that the listing would contribute to the growth of the Nigerian corporate bond market, invariably injecting renewed confidence into the DCM. Ms. Sekoni went on to assure all parties that the FMDQ Listings & Quotations Service was continually refined and tailored to provide, among others, a unique opportunity for issuers to raise the profiles of their issues and access a deep pool of capital, thereby meeting their long-term funding needs even as investor confidence is promoted through the availed transparency, information disclosure, price formation and visibility.

Ahead of signing the Bond Listings Register, Mr. Abubakar Suleiman noted that “the last time the Bank accessed the bond market was in 2011, and expressed his elation at the confidence placed in the institution by investors who participated in the offer despite the current volatility in the Nigerian financial market. He acknowledged FMDQ’s contribution to the growth of the Nigerian DCM by facilitating active secondary market trading, and opined that the Bank was offering greater value to its esteemed investors by listing on FMDQ to enhance the liquidity of the bonds”.

Following the presentation to the sponsor of the bond on FMDQ, Mr. Niyi Omojola, Partner at Constant Capital Partners Ltd., stated that “Constant Capital, the lead issuing house in this transaction, crafted a unique, innovative investment structure which enabled the Sterling SPV Bond share in the same investment grade rating as Sterling Bank PLC, enlarging the range of potential investors in the bond.

The innovative structure, he commented, protects investors by providing Federal Government of Nigeria bonds-backed credit enhancement while investing in the Tier II Note of Sterling Bank PLC.
This innovation has allowed investors benefit from an enhanced rating, while providing Tier II capital to Sterling Bank PLC.”

Mr. Omojola added that Stanbic IBTC, Vetiva Capital Management and SCM Capital acted as joint issuing houses to the issue.

FMDQ is committed to developing the Nigerian bond market through a highly efficient registration process, instituting requisite world-class standards to drive transparency, governance, credibility and market liquidity, to boost growth in the Nigerian financial market with a view to protecting stakeholder interests.

Sent from my BlackBerry® smartphone provided by Airtel Nigeria.

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