By Chioma Obinagwam
The FMDQ Over The Counter (OTC) securities exchange has said that it has successfully admitted the Dangote Cement PLC ₦50 billion Series 1 & 2 Commercial Paper (CP) Notes on its platform.
FMDQ disclosed in a statement on Thursday.
Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days.
FMDQ further stated that under its ₦150 billion Domestic CP Issuance Programme, the Dangote Cement CP is the largest CP issuance by a non-financial institution following resuscitation of the Nigerian CP market.
Welcoming the guests to the Ceremony, Ms. Tumi Sekoni, Directorate Head, Capital Markets, FMDQ, commended the issuer and sponsor of the issue for achieving this milestone, noting that their decision to raise funds from the debt markets was testament to the restoration of confidence in the Nigerian CP market, which had been marked by an extended period of dearth of activity, significantly weakened issuer interest and diminished investor confidence.
She further commented that the issuance would encourage other corporates and commercial entities to effectively tap the potential burgeoning CP market to finance their short-term funding needs, thereby adding more depth and breadth of the Nigerian debt capital markets (DCM).
She said, “The quotation of the CPs would undoubtedly pave the way for the establishment of a globally recognised non-financial corporate benchmark for the Nigerian CP market, owing to the associated rating and reputation garnered by the Dangote conglomerate and encouraged the issuer to continue to tap the debt markets to ensure the actualisation of the desire for a corporate benchmark in the Nigerian debt market.”