FMDQ OTC Securities Exchange admits N17.7bn NB commercial paper

FMDQ OTC Securities Exchange (FMDQ) has admitted the quotation of the Nigerian Breweries plc (NB) N17.709 billion Series 1 Commercial Paper (CP) Notes under its N100 billion Commercial Paper Issuance Programme (The Nigerian Breweries CP) on its platform following the approval of the Board Listings and Quotations Committee.

NB successfully met the quotation requirements as contained in the FMDQ Commercial Paper (CP) Quotation Rules.

As is the tradition with the OTC Exchange, a quotation ceremony was held Thursday, with the issuer, NB, as the guest of honour, represented by Mark Rutten, the finance director, and the joint issuing houses (registration members (quotations) of FMDQ), Stanbic IBTC Capital Limited and FBN Capital Limited, represented by Kobby Bentsi-Enchill, head, Debt Capital Markets, and Kayode Akinkugbe, managing director/CEO, respectively.

While congratulating NB for quoting the first non-bank CP, Bola Onadele Koko, managing director/CEO of FMDQ, noted that “as a securities exchange, FMDQ promotes credibility for quoted CPs, through a highly efficient registration process.”

He further said that CPs quoted on the OTC securities exchange gain access to the full complement of an FMDQ quotations service, which includes but not limited to the global visibility through its inclusion to the FMDQ Bloomberg E-Bond trading system and on the quotations page of the FMDQ website, as well as improved transparency drive, which is characterised by continuous disclosure of relevant information (such as issuer, issuance type, outstanding value and issuer history) on instruments quoted on the FMDQ platform.

Ahead of the signing of the FMDQ Quotations Register and the presentation of the CP Quotation Certificate, Rutten, while making his address, said the company was excited about the future of the planned CP issuance activity on FMDQ and the ever-growing benefits this would bring to the capital market.

Speaking about the transaction, following the presentation of the CP Quotation Tombstones to the Registration Members, Bentsi-Enchill stated, “increasing the number of CP issuances is the first step towards creating liquidity in secondary market trading of CPs. The second, and equally important step is the quotation of the securities on FMDQ OTC Securities Exchange.

“We are exceptionally pleased to have worked with NB plc in setting up its maiden CP Programme and successfully raising N17.7 billion in the first series. We are also pleased to sponsor the quotation of the CP on the FMDQ OTC Securities Exchange.

“The decision by NB PLC to complement its short term funding via issuance in the money and capital markets is certainly laudable, and in so doing the company has demonstrated leadership as a pacesetter in the domestic debt capital markets.”

Akinkugbe expressed his delight at having partnered NB in establishing its N100 billion CP programme, the largest ever by a Nigerian corporate and successfully arranging the first tranche of N17.7 billion amid general market volatility.

He further said, “the success of the transaction speaks to the high confidence the investing public has in the NB PLC brand and recognition of the Issuer’s remarkable track record in the beverage industry.

“In addition, it is a reflection of the Joint Lead Issuing Houses distribution capability and depth in the fixed income market. We expect that the quotation of the NB CP on FMDQ will provide investors with transparency, efficient price determination and improved liquidity.”

As a securities exchange and self-regulatory organisation, with a commitment to facilitate growth and development in the financial market and Nigerian economy at large, FMDQ is committed to promoting an efficient, transparent and well-regulated market, which will attract and retain investors (domestic and foreign).