Transcorp Hotels lists N10bn bond on FMDQ OTC platform

FMDQ OTC Securities Exchange (FMDQ) commenced 2016 with the successful listing on its platform of the Transcorp Hotels plc N10 billion Series 1, 7-Year 16 percent Fixed Rate Unsecured Bonds, which is under a N30 billion Medium-Term Bond Programme (the Transcorp Bond).

Bola Onadele. Koko, managing director/CEO of FMDQ, while applauding Transcorp Hotels for successfully raising N10 billion from the Nigerian debt capital market, commended the issuer for its judicious decision to list the Transcorp Bond on FMDQ.

He highlighted, “FMDQ remains steadfast in its commitment to facilitate growth and development in the Nigerian financial market, with specific focus on the debt capital market, and the Nigerian economy at large, and has actively commenced the year with initiatives being developed to address this growth and development. The decision by the Management of Transcorp Hotels plc to list its N10 billion Bond (Series 1 under a N30.00bn Medium-Term Bond Programme) on FMDQ is one that will under no circumstance be regretted. The Nigerian debt capital market continues to make essential strides towards its development, and today’s listing on FMDQ marks another milestone in this certain development.”

FMDQ will provide continuous information disclosure on the Transcorp Bond and include price/value data and detailed issuers’/issue information to stakeholders via the ‘Listings and Quotations’ page on the FMDQ website.

As part of its mandate to promote an efficient and well-regulated market, which will attract and retain both domestic and foreign investors, improve price discovery and transparency for issuers, dealers, regulators and the general public, the Bond shall also be included on the FMDQ-Bloomberg E-Bond Trading System (E-Bond).

FMDQ played host to the issuer, represented by the chairman, Transcorp Hotels, O’tega Emerhor, and the MD/CEO, Transcorp Hotels, Valentine Ozigbo, as well as the sponsor of the Bond on FMDQ, the Registration Member (Listings), United Capital plc, represented by the group CEO, Oluwatoyin Sanni, and the deputy group CEO, Wale Shonibare, to a prestigious listing ceremony the Exchange is becoming known for.

As is customary of FMDQ Listing Ceremonies, this ceremony was afforded full accolades, which included the signing of the FMDQ Bond Listings Register, presentation of the FMDQ Listing Certificate, unveiling of the FMDQ Listing Scroll, presentation of the FMDQ Listing Plaque, and the autographing of the FMDQ Bond Listing Wall of Fame.

Valentine Ozigbo, MD/CEO, Transcorp Hotels, during his special address, said: “We are very delighted to have successfully closed our Series 1 & 2 Bonds, where we raised N19.76 billion in the last quarter of 2015; Series 1 (₦10.00bn) of which is being listed on FMDQ today. This will no doubt ensure a more efficient capital mix and access to a more diversified funding source, given that we had operated with zero interest bearing debt before now.

“By this listing, we have kept our promise to deliver value to all stakeholders, and we will continue to do so. Beyond providing the funding we need for the upgrade of the Transcorp Hilton Hotel Abuja and other projects, the Transcorp Bonds equally give an opportunity for the investing public to be part of our success story as well as an avenue for wealth creation”.

Tumi Sekoni, head, marketing and business development division of FMDQ, said at the listing that the listing would contribute, in no small measure, to the growth of the Nigerian corporate bond market; with the planned initiatives of the Exchange to promote secondary market liquidity in the non-sovereign bond market in Nigeria serving to further enhance that growth.

Being acutely aware of the growth potential of issuers in the Nigerian debt capital market, Sekoni further stipulated that an FMDQ Listing service has been 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 the Nigerian debt capital market becomes aligned with international best practices and standards.

Following the presentations to the Registration Member (Listings), Oluwatoyin Sanni, Group CEO, United Capital plc while speaking about the transaction stated, “We are delighted to have played a leading role in the successful execution of the Transcorp Hotels Series 1 Bond Issue. Coming from a successful 2015, United Capital remains committed to making significant contributions to the success of our esteemed clients.

This transaction represents one of the ways we support leading businesses through our expertise in capital raising. United Capital has been Lead Issuing House and Lead Underwriter and Trustee to the largest Local Currency Bonds issued in both 2014 and 2015 and has between September 2014 and December 2015 invested N45 billion in bonds issued by Nigerian States and Corporate entities.  We will continue to support Nigerian governments and businesses with superior Advisory, Capital Raising and Trust services. This is a true testament to our industry leadership and expertise.”