FMDQ OTC (FMDQ) has admitted Stanbic IBTC Bank’s N15.540 billion Series 1 (Tranches A & B) 10-year subordinated notes under a N150,000,000,000.00 structured note issuing programme due for redemption in 2024.
The bond, listed on June 8, 2015, is the second corporate bond to be listed on FMDQ OTC platform after the N30.5 billion bond of United Bank for Africa (UBA).
At the listing ceremony in Lagos, FMDQ Managing Director and Chief Executive Officer (CEO), Bola Koko, said the debt-focused securities exchange is committed to facilitating growth and development in the financial market through its efficient platform for the registration, listing, quotation, and valuation of bonds.
According to him, the listing of debt securities on FMDQ provides a wide range of benefits across the debt market value chain, global visibility and transparency to the listed debts, improved secondary market liquidity, price formation and benchmark pricing.
All these, he said, positively impact the Nigerian debt capital market (DCM) stakeholders, including issuers, issuing houses, investors, market makers, and regulators, resulting in a more globally competitive capital market.
The bond issuer, represented at the ceremony by Stanbic IBTC Bank CEO, Yinka Sanni, explained that the N15.54 billion bonds have a tenor of 10 years and are notable for being the longest tenured bonds in its asset class to be issued in the Nigerian capital market.
He said the net proceeds of the issue would fund the bank’s asset growth in the personal and business banking segment, while shoring up capital adequacy in the form of Tier II Capital, in line with the regulatory framework of the Central Bank of Nigeria (CBN).
Sanni explained that the bonds are listed on FMDQ as the exchange provides an over-the-counter platform that enhances the liquidity of bonds and other securities traded on it.
He said FMDQ’s value proposition for the transformation of the markets would deepen secondary market liquidity and transparency, and therefore align the market with international best practices.
“An efficient, transparent and well regulated market, which FMDQ promotes, will attract and retain investors (domestic and foreign).
“Issuers have the opportunity to leverage on the provisions of this unique exchange to meet their long term funding needs, thus further developing the Nigerian financial market, and by extension, the Nigerian economy,” he added.
Bentsi-Enchill representing Stanbic IBTC Capital and sponsors of the bond on FMDQ’s platform, enthused that the listing of the bond on FMDQ OTC would promote secondary market liquidity, thus providing a pricing benchmark for subsequent issuances under the Stanbic IBTC Structured Note Programme.
The programme is the first of its kind in the Nigerian capital market, as it allows for the issuance of different types of bonds for issuer’s funding and liquidity management, regulatory capital management (for example, Tier 2 Capital), and distribution of risk assets via credit linked notes.
Issuing house/sponsor and FMDQ, represented by FMDQ OTC Vice Chairman and member, board listings and quotations committee, Jibril Aku, and Onadele signed the FMDQ Bond Listing Register. The certificate was also presented to the issuer.
FMDQ recognises the growth potential of issuers of debt in the capital market and thus provides them an opportunity to raise the profile of their issues and access a deep pool of capital.