FMDQ admits N10bn worth Guinness Nigeria commercial paper notes

FMDQ OTC Securities Exchange (FMDQ) yesterday achieved another stride in its commitment to the development of the Nigerian Commercial Paper (CP) market with the admission of the Guinness Nigeria plc N7.225 billion and N2.774 billion Commercial Paper (CP) Notes for quotation on the Exchange.

These CPs represent Series 2 and 3 under the organisation’s N10 billion Commercial Paper Issuance Programme. This achievement immediately follows the recent successful listing of the Transcorp Hotels plc N10 billion bond on FMDQ at the beginning of the year.

The Board Listings, Markets and Technology Committee of FMDQ granted its approval for the quotation of the Guinness Nigeria CP after it successfully met the requirements as contained in the FMDQ CP Quotation Rules.

As has become a norm, a Quotation Ceremony was held to commemorate the admission of the Guinness Nigeria CPs on the Exchange.

Peter Ndegwa, its managing director/CEO, as well as other key representatives represented Guinness Nigeria at the ceremony.

Standard Chartered Capital & Advisory (Nigeria) Limited, the sponsor of the issue on FMDQ and a Registration Member (Quotations) of the Exchange, represented by the CEO, Leke Ogunlewe, was also present at the ceremony.

Other key parties to the transaction were also in attendance, including Stanbic IBTC Capital plc, joint lead arranger to the issue, represented by Kobby Bentsi-Enchill, executive director, Debt Capital Markets, and Standard Chartered Bank Nigeria Limited, represented by David Adepoju, head, Financial Markets Nigeria & West Africa.

Tumi Sekoni, vice president/divisional head, marketing/business development of FMDQ, while delivering the welcome address, acknowledged the Guinness Nigeria CPs as the second and third non- bank real sector CPs to be quoted on the Exchange, following the quotation of the pioneer non-bank real sector CP, the N17.709 billion Nigerian Breweries plc CP on the Exchange in November 2015.  Sekoni highlighted that the quoted Guinness Nigeria CPs would gain access to the full complement of the FMDQ quotations service, which includes but is not limited to global visibility, transparency and continuous disclosure of relevant information (such as issuer rating, issuance type, outstanding value and issuer history).

Ahead of the signing of the FMDQ Quotation Register and the presentation of the Commercial Paper Quotation Certificate, Ndegwa, in his address, commented: “We are very pleased with the successful quotation of this CP issuance for Guinness Nigeria plc and the support received from FMDQ and our advisors to enable this. The quoting of this CP has allowed us successfully diversify our short-term funding sources at a reduced cost while delivering value to our shareholders. We will continue to access the CP markets for optimal funding as ideal windows open for Guinness Nigeria to access funds from a varied pool of investors.”

Also speaking at the Ceremony, following the presentation of the FMDQ bespoke tombstone to the Registration Member (Quotations) and sponsor, Ogunlewe commented, ‘’Standard Chartered is proud to have sponsored this CP quotation on FMDQ for Guinness Nigeria PLC. The quotation follows the successful issuance of the Series 2 and 3 transactions in November 2015 and should herald improved liquidity for both instruments. We believe this is the beginning of many more opportunities to support institutional growth for our clients and the continuous development of the economy at large. This is clearly in line with our commitment to be “here for good.”

In his remark, Bola Onadele. Koko, managing director/CEO of FMDQ, congratulated Guinness on its decision to quote its CPs on FMDQ and highlighted that the quotation of these CPs, being non-bank real sector institution CPs, was evident of the positive progression of the Nigerian CP market, serving to instil confidence in the possibilities of the Nigerian debt capital market.

Koko stated that FMDQ, as a securities exchange with an insatiable desire to develop the Nigerian CP market, “promotes credibility for quoted CPs, through a highly efficient registration process, instituting requisite world-class standard financial market infrastructures to drive transparency, governance, market oversight, credibility and market liquidity to power growth in the Nigerian financial markets with a view to protecting stakeholder interests. “

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).

 

Iheanyi Nwachukwu