FMDQ Continues to Support Infrastructure Development

...Admits NSP-SPV PowerCorp Guaranteed Green Infrastructure Bond on its Platform

FMDQ Continues to Support Infrastructure Development
Infrastructure development in the nation is taking progressive steps in the right direction, as another corporate, North-South Power Company Limited (“NSP” or “Company”) through NSP-SPV PowerCorp PLC, taps the Nigerian debt capital markets (DCM) for funding targeted at green infrastructure development.
The listing  of  the  NSP-SPV  PowerCorp  PLC  Series  1  ₦8.50bn  15.60%  15-year  Fixed  Rate  Senior  Green Infrastructure  Bond  (the  “NSP-SPV  PowerCorp  Bond”)  under  its  ₦50.00bn  Bond  Issuance  Programme, guaranteed by Infrastructure Credit Guarantee Company Limited (“InfraCredit”), on FMDQ OTC Securities Exchange (“FMDQ” or the “Securities Exchange”) is the latest of these laudable initiatives that are paving the way for the infrastructure development via the Nigerian DCM. NSP, a first-time issuer in the domestic bond market, is an Africa focused electricity generation company with a diverse and emerging portfolio focused on the electricity value chain, with special emphasis on renewable energy systems such as solar, electric, thermal, wind and hydropower plants.
  To commemorate this remarkable achievement, FMDQ, in keeping with its tradition, held a prestigious listing Ceremony at its business complex,  Exchange  Place,  on  Wednesday,  May  8,  2018.  Present to celebrate the successful admission of  NSP-SPV  PowerCorp Bond on FMDQ was the issuer,  NSP-SPV PowerCorp PLC, represented by the Chairman, Mallam Ibrahim Aliyu, the Executive Vice Chairman/Chief Executive  Officer,  Dr.  Olubunmi  Peters, and other representatives of North-South  Power  Company Limited.
Also  present  at  the  Ceremony were the  sponsor  of  the  issue  and  the  Registration  Member (Listings)  of  FMDQ,  United  Capital  PLC, represented  by  the  Group  Chief  Executive  Officer,  Mr.  Peter Ashade, the guarantor to the bond, Infrastructure Credit Guarantee Company Limited, represented by the Chief Executive Officer, Mr. Chinua Azubike and representatives from the Joint Issuing House, Stanbic IBTC Capital Limited, Vetiva Capital Management Limited and Zenith Capital Limited, as well as the solicitor to the listing, Banwo & Ighodalo and other parties to the issue.
Ms.  Tumi  Sekoni,  Associate  Executive  Director,  Capital  Markets,  FMDQ,  whilst  welcoming  the  guests, congratulated the issuer, NSP-SPV PowerCorp PLC, and went on to express FMDQ’s pleasure at the listing of a green infrastructure bond on its platform, stating that this is yet another highly exemplary and indeed, positive step towards addressing some of the infrastructural and environmental challenges in the nation.
She commented, “FMDQ, being an Exchange with a passion for infrastructure and sustainable development in Nigeria, has again demonstrated its unflinching commitment in this regard by providing due diligence and availing its credible and efficient platform for the listing and trading of the NSP-SPV PowerCorp Bond”.
  Dr. Olubunmi Peters, during the issuer’s special address, stated, “the issuance of the first corporate green infrastructure bond in Nigeria is a significant milestone in the Company’s long-term corporate strategy, demonstrating our market leadership,  innovation, and commitment to the highest standards of environmental, social and corporate governance.
The success of the transaction further highlights the growing appetite for socially responsible investment in the Nigerian DCM. This Series 1 N8.5 billion 15 Year 15.60% Guaranteed Fixed Rate Senior Green Infrastructure Bond provides a new vista of opportunity not just for companies in the financial sector, but for other corporate companies in Nigeria.”
Delivering the Registration  Member  (Listings)  remarks,  Mr.  Peter  Ashade,  highlighted,  “to cater for sustainable environmental development in Nigeria, the need for financing cannot be understated.
United Capital PLC is delighted to have played the financial advisory and lead issuing house role in North South Power’s long-term strategy in issuing the first corporate green infrastructure bond in Nigeria.
We remain committed to making significant contributions to the Exchange and to the success of our esteemed clients through our expertise and innovation in the Nigerian DCM. We believe that listing this instrument will pave  the  way  for  other environmentally  friendly  instruments thereby  establishing a robust domestic capital market.”
According to Mr.  Chinua  Azubike, Chief  Executive Officer of InfraCredit, guarantor to the bond, “transitioning  Nigeria’s economy to a sustainable development path has become an existential imperative.
As the largest source of long-term investment capital, the domestic bond market has an especially important role to play as an effective investment tool to finance the country’s transition to a low-carbon economy.
We are pleased to have supported North-South Power Company Limited with our guarantee, in pioneering this sustainable path by issuing the first corporate green infrastructure bond with the longest tenor in sub-saharan Africa.”
  Closing the ceremony, Ms. Kaodi Ugoji, Associate Executive Director, Corporate Development, FMDQ, in her remarks, applauded the issuer, the sponsor of the issue, the guarantor to the bond and other parties to the issue, for their concerted efforts towards ensuring the success of the issuance, acknowledging that infrastructure poses a major challenge to the realisation of the potential of the Nigerian economy, one which has not only stagnated economic development but inhibited improvement in the standard of living of the Nigerian people.
FMDQ, therefore, recognises the untapped potential of the DCM for infrastructural development  and  is  actively  championing  initiatives  to  leverage  on  these  opportunities,  which  will promote economic growth and development for the benefit of the citizenry

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