DMO lists FG $1bn Eurobond on FMDQ platform

Debt Management Office (DMO) on Friday listed the Federal Government $1 billion Eurobond due 2032 on the FMDQ OTC Securities Exchange platform.
Abraham Nwankwo, the DMO director-general, said at the bond listing ceremony in Lagos that the listing was a landmark event in the history of the country, saying the listing was done to promote financial inclusion, adding that it would be the first foreign currency bond to be listed on local platforms.
Nwankwo stated that the Federal Government, in the spirit of change, decided that it was time to list Eurobond issued by Nigeria on local exchanges, FMDQ and the Nigerian Stock Exchange (NSE).
He said that the Federal Government, on Feb. 9, announced the pricing of the Eurobonds under its one billion dollars Global Medium-Term Note Programme, which was over-subscribed by 780 percent.
He said the subscription level showed the high level of confidence of international communities on the nation’s economy in spite of the current challenges.
He said that the bond was listed on local exchanges to enable Nigerians, individuals and corporates to have access to the Eurobond at their door steps, noting, “With the listing, it means that we are not only creating value, but look at creating financial inclusion.”
He also commended the resourcefulness and innovation of the FMDQ in improving the development and growth of the nation’s capital market.
The director-general lauded Nigerians for the patience and assured that government was working effortlessly with all stakeholders to transform the economy through infrastructure development.
He said that Nigerians would feel a positive change in their livelihood in no distance time, and explained that this would set the pace for global competitiveness and invariably deepen the Nigerian financial markets in no small measure.
He said that it would also lay credence to the underlying objectives for the birth and operational mandate of FMDQ.
“The issuance of the one-billion dollar FGN Eurobond was aimed at fostering economic development and will serve to rejuvenate the vibrancy of the nation’s foreign exchange market.
“Remarkably so, this is the first-time the sovereign’s Eurobond will be considered for listing on a domestic exchange following the nation’s first and second outings to the international capital markets in 2011 and 2013, respectively,” he said.
Sarah Alade, a deputy governor at CBN and FMDQ chairman, commended the Securities and Exchange Commission (SEC) for its support in ensuring the growth of the platform.
Alade, who was represented by Jubril Aku, FMDQ vice chairman, said that the exchange was committed to the development of the debt market, saying FMDQ had provided a highly resourceful platform for many things.
He said those things included the registration, listing of Bonds (Sovereign, Agency, Sub-national, Corporate, Supranational, as well as Eurobonds and Sukuk), Funds and the quotation of Commercial Papers, Treasury Bills, among others.
Mounir Gwarzo, the SEC director-general, who was represented by Adam Sambo, said that the oversubscription was due to huge confidence shown by the international market, saying the commission would continue to provide the needed environment for the capital market to grow.
He commended the management of FMDQ for its initiatives in the market, noting that, the contribution of the capital market to the GDP would improve with the platform’s products.
Gwarzo said that the commission was ready to provide the rules and enabling atmosphere for FMDQ to thrive and grow.