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Tag: FMDQ

  • FMDQ Vice Chair becomes a stockbroker

    FMDQ Vice Chair becomes a stockbroker

    Vice Chairman, FMDQ Group Plc, Dr. Jibril Aku, has joined the league of securities professionals, popularly called stockbrokers in Nigeria, with his induction as an Associate Member of Chartered Institute of Stockbrokers (CIS).

    Addressing the participants at the Induction Ceremony at the Institute’s Chamber in Lagos, President, Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, described Aku’s induction as symbolic.

    According to him, it helps to elevate professional inclusion and promote unity among the operators in the capital market community in Nigeria. He reiterated the importance of integrity in the securities and investment industry, aligning it with the principle of “My word is my bond” and advised Aku to uphold this standard in his new role.

    He encouraged Aku to join some committees within the institute to leverage his extensive experience to advance the securities and investment profession in Nigeria.

    Dada applauded Aku for his excellent disposition to studies as a trainee stockbroker, saying despite his exalted position and accomplishments in the society, he passed the institute’s professional examination.

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     Responding, Aku, expressed gratitude to the Institute. Hestated that he had the option of receiving the honorary CIS membership but decided to take the examination route to ensure that he is an active participant in the task of bringing the money and capital market together for more liquidity in the capital Market, describing this as the last stage that needs to be achieved to increase liquidity in the capital market – a market with potential to be several times bigger than the banks in terms of volume and value of transactions.

    “The curriculum of CIS is more weighted towards bonds and fixed incomes trading rather than equity but dealers are sitting on the equity side and ignoring the other side. The older ones might not want to convert but we have the younger ones and we should not let them go the way of the older ones. We have to find a way to create that bridge,” Aku said.

    In attendance at the ceremony were the Institute’s 1st Vice President, Mrs Fiona Ahimie, 2nd Vice President, Dr Akeem Oyewale and the Registrar and Chief Executive, Mr Josiah Akerewusi.

  • FMDQ Exchange lists Eat & Go Finance’s N1.15b bond

    FMDQ Exchange lists Eat & Go Finance’s N1.15b bond

    FMDQ Securities Exchange (FMDQ Exchange)  has approved the listing of Eat & Go Finance SPV Plc’d N1.15 billion Series 1 Fixed Rate Bond.

    The bond is the first tranche under a  N35 billion bond issuance programme established by Eat & Go Finance SPV Plc, a special purpose funding vehicle established by Eat ‘N’ Go Limited (Eat ‘N’ Go) to raise finance from the debt markets through the listing of debt securities.

    Eat ‘N’ Go is a master franchisee for Domino’s Pizza, Cold Stone Creamery and Pinkberry Gourmet Frozen Yoghurt brands.

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    The company has more than 175 stores across Nigeria and Kenya, presenting significant growth opportunities.

    The proceeds generated from the Eat & Go SPV PLC Series 1 Bond will be used by to offset existing debts, fund working capital requirements, and enhance sales infrastructure across the country.

    FMDQ Exchange reiterated its commitment to drive transformative changes in the Nigerian debt markets and the broader economy through steady innovation and efficiency.

    “By offering prompt and cost-effective securities admission services, FMDQ Exchange facilitates seamless access to capital and investment assets for issuers and investors respectively, within the Nigerian debt markets, bolstered by a comprehensive suite of financial solutions,” FMDQ Exchange stated.

  • Nigerian Breweries to list N15b CPs on FMDQ

    Nigerian Breweries Plc will list its ongoing N15 billion commercial papers issuance on the FMDQ OTC Securities Exchange to provide investors opportunity to trade on their holdings.

    The brewer is offering 90-day and 182-day CPs to investors with a view to raising short-term funds for its operations. The issuance is part of the company’s N100 billion CP programme.

    The 90-day CPs carry effective and discount yields of 11.590 per cent and 11.2680 per cent respectively while the 182-day CPs carry 14.430 per cent and 13.4614 per cent respectively. Both issuances have been rated Aa by Agusto and AA by Global Credit Rating (GCR).

    The Series 1 90-day CPs are expected to mature on Monday July 22, 2019 while the Series 2 182-day CPs will mature on Tuesday, October 22, 2019. The offers opened on Thursday, April 11, 2019 and will close on Thursday, April 18, 2019. The settlement date is Tuesday, April 23, 2019.

    In a statement at the weekend, Company Secretary and Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku said the new CP programme would support the company’s cost management and complement traditional sources of financing to include non-bank financing options.

    He said the CPs also provide opportunity for non-equity investors to invest in the company.

    He noted that following the success of the company’s first N100 billion CP programme between 2015 and 2018, the board of directors of the company had approved a new N100 billion programme last July.

  • Nigerian Breweries to list N15b CPs on FMDQ

    Nigerian Breweries Plc will list its ongoing N15 billion commercial papers issuance on the FMDQ OTC Securities Exchange to provide investors opportunity to trade on their holdings.

    The brewer is offering 90-day and 182-day CPs to investors with a view to raising short-term funds for its operations. The issuance is part of the company’s N100 billion CP programme.

    The 90-day CPs carry effective and discount yields of 11.590 per cent and 11.2680 per cent respectively while the 182-day CPs carry 14.430 per cent and 13.4614 per cent respectively. Both issuances have been rated Aa by Agusto and AA by Global Credit Rating (GCR).

    The Series 1 90-day CPs are expected to mature on Monday July 22, 2019 while the Series 2 182-day CPs will mature on Tuesday, October 22, 2019. The offers opened on Thursday, April 11, 2019 and will close on Thursday, April 18, 2019. The settlement date is Tuesday, April 23, 2019.

    In a statement at the weekend, Company Secretary and Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku said the new CP programme would support the company’s cost management and complement traditional sources of financing to include non-bank financing options.

    He said the CPs also provide opportunity for non-equity investors to invest in the company.

    He noted that following the success of the company’s first N100 billion CP programme between 2015 and 2018, the board of directors of the company had approved a new N100 billion programme last July.

  • FMDQ to banks: hedge dollar-based loans

    Commercial banks taking dollar-denominated loans should hedge the facility against risk of currency fluctuations, FMDQ OTC Securities Exchange Managing Director/CEO Bola Onadele has said.

    Speaking during the financial markets workshop in Lagos, he said banks borrowing dollars needed to protect themselves through hedging. “Anyone that takes foreign currency loan should hedge, that is the opportunity the Central Bank of Nigeria (CBN) has provided,” he said.

    He explained that hedging/derivatives were primarily risk management instruments that enable participants to price and transfer (hedge) financial risks such as market/price risk, foreign exchange risk, and interest rate risk.

    According to him, hedging reduces the risk of exposures to unforeseen circumstances. Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.

    Speaking further, Onadele said: “The banks that are borrowing dollars when they have to pay back, they have to pay back in dollars. They have to protect themselves, through hedging. Anyone that takes foreign currency loan should hedge, that is the opportunity the Central Bank of Nigeria (CBN) has provided. The rates are low in dollars, so you are tempted to borrow in dollars at four per cent instead of borrowing in naira at 20 per cent”.

    He said that derivatives improve risk management and business planning, increases credit to critical sectors of the economy to drive growth, increase capital flow from Foreign Portfolio Investors, increase liquidity in the system and promote Market Efficiency and Sophistication as well as financial system stability.

    He said that 92 per cent of the world’s 500 largest companies manage their price risks using derivatives, adding that notional principal of derivatives increased by 642.17 per cent from $93.02 trillion in 1998 to $690.37 trillion in 2018, which is over eight times the world’s Gross Domestic Product (GDP).

    The OTC derivatives account for 86 per cent of the amount and will lead to rise in use of exchange-traded and centrally-cleared derivatives.

    Also speaking at the event, Chairman, Swaps & Derivatives Workgroup and FMDA President, Samuel Ocheho, said the workshop with the theme:  Legal Documentation as Driver to introducing New Products and a Healthier Financial Market in Nigeria was organised by the Swaps and Derivatives Workgroup of the FMDA to sensitize people, members of the FMDA and other market operators on the need for hedging products and proper documentation in the market.

    The International Swaps and Derivatives Association (ISDA) Africa Chairman, Brett Gallie and Partner at Clifford Chance, Derivatives and Structured Trades, Matthew Grigg were also at the event to support the Nigerian derivatives market.

    Continuing, Onadele said that pension fund managers also needed to understand the impact of hedging on their operations, especially as interest rate that was 17 per cent today could suddenly become 11 per cent in the nearest future.

    “The CBN brought naira settled OTC FX futures and now everybody is able to hedge and plan.  As the commodities market in Nigeria grows, all of us will understand that playing vanilla derivatives is good for risk management. What we are preaching now is plain vanilla derivatives to protect the pension and the price,” he said.

    According to Ocheho, FMDA is a partner in progress in developing the Nigerian financial and derivatives market, adding that the programme was supported by FMDQ OTC Securities Exchange to impact positively on the derivatives market.

    “There is need to have proper documentation for all the products that we are doing in the financial market. In Nigeria, we do not want to lose revenue. One way to ensure that our oil price remains high is by creating a hedge product for the oil price. Most government doesn’t want to hedge because they believe the price is expensive. The level of adoption of hedging in Nigeria is still very low because most people do not understand why they need to hedge. I understand the reason is cost but hedging gives you a better way for planning,” Ocheho said.

     

  • FMDA, FMDQ task govt, banks on hedging

    The FMDQ OTC Securities Exchange and Financial Market Dealers Association of Nigeria (FMDA) have urged the Federal Government, banks and other enterprises to embrace hedging to reduce the risk of exposures to unforeseen circumstances.

    Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.

    Speaking at the financial markets workshop organised by the Swaps and Derivatives Workgroup of the FMDA in Lagos, Managing Director/CEO, FMDQ OTC Securities Exchange, Bola Onadele said that banks can hedge their foreign currency loans to reduce  exchange rate risks and improve their operations.

    Also speaking at the event, Chairman, Swaps & Derivatives Workgroup and FMDA President, Samuel Ocheho, said the workshop with theme:  Legal Documentation as Driver to introducing New Products and a Healthier Financial Market in Nigeria was organized by the Swaps and Derivatives Workgroup of the FMDA to sensitize people, members of the FMDA and other market operators on the the need for hedging products and proper documentation in the market.

    The International Swaps and Derivatives Association (ISDA) Africa Chairman, Brett Gallie and Partner at Clifford Chance, Derivatives and Structured Trades, Matthew Grigg were also at the event to support the Nigerian derivatives market.

    Speaking further, Onadele said: “The banks that are borrowing dollars when they have to pay back, they have to pay back in dollars. They have to protect themselves.  Through hedging. Anyone that takes foreign currency loan should hedge,  that is the opportunity the Central Bank of Nigeria (CBN) has provided. The rates are low in dollars, so you are tempted to borrow in dollars at four per cent instead of borrowing in naira at 20 per cent”.

    According to Ocheho, FMDA is a partner in progress in developing the Nigerian financial and derivatives market adding that the programme was supported by FMDQ OTC Securities Exchange to impact positively on the derivatives market.

    “There is need to have proper documentation for all the products that we are doing in the financial market. In Nigeria, we do not want to lose revenue. One way to ensure that our oil price remains high is by creating a hedge product for the oil price. Most government don’t want to hedge because they believe the price is expensive. The level of adoption of hedging in Nigeria is still very low because most people do not understand why they need to hedge. I understand the reason is cost but hedging gives you a better way for planning,” Ocheho said.

  • FMDA, FMDQ partner on derivatives workshop

    The FMDQ OTC Securities Exchange and the  Financial Market Dealers Association (FMDA) have partnered to promote the forthcoming FMDA conference on derivatives market holding next week in Lagos.

    The International Swaps and Derivatives Association (ISDA) Africa Chairman, Mr. Brett Gallie,  Partner at Clifford Chance, Derivatives and Structured Trades, Mr. Matthew Grigg and   Managing Director/CEO, FMDQ OTC Securities Exchange, Mr. Bola Onadele (Koko) have all confirmed their attendance at the Swaps & Derivatives Workgroup’s Financial Markets Workshop holding in Lagos.

    The event, organised by the Swaps and Derivatives WorkGroup of the Financial Market Dealers Association of Nigeria (FMDA) will  hold at the prestigious Lagos Continental Hotel, Victoria Island, Lagos ?on Tuesday, March  19?. It will focus on the theme: “Legal Documentation as Driver to introducing New Products and a Healthier Financial Market in Nigeria”.

    The association stated that the theme is not only timely and apt, but expected to discuss the standardization of documentations in Nigeria’s market with the view of boosting the integrity of markets and attract investors’ trust and confidence to the market. The event is expected to commence ?at 8.30am? and ?end by 2.00pm?.

    The opening remarks at the event will be delivered by the Chairman, Swaps & Derivatives Workgroup and FMDA President, Samuel Ocheho.

    According to FMDA,  Gallie and Grigg will be speaking on Market Documentation and the need for Standardization while Onadele will speak on the Need for Derivatives in the Nigerian Financial Markets and FMDQ’s plan for product roll-out this year.

    Partner, Aluko & Oyebode Mrs. Olubunmi Fayokun will be moderating on the topic Transaction Netting in Nigeria – The Way Forward with other renowned panelists which will also contribute to make the event remarkable among whom are Mrs. Yinka Edu – Partner, Udo Udoma Bello Osagie & Co and Mr. Zeal Akaraiwe, CEO, Graeme Blaque.

  • FMDQ lists Mixta Real Estate’s N17.2b debt issues

    FMDQ OTC Securities Exchange has admitted two bonds and commercial papers issued by Mixta Real Estate (Nigeria) Plc for trading on the over-the-counter market, paving the way for investors in the debt issues to trade on their holdings.

    Mixta listed its N2.96 billion Tranche A and N2.32 billion Tranche B Series 2 bonds and N9.84 billion Series 1 and N2.08 billion Series 2 commercial papers. The bonds were issued under the company’s N30 billion debt issuance programme while the commercial papers were issued under its N15 billion commercial paper issuance programme.

    The listing marked another significant contribution to inspire confidence in the Nigerian markets as housing and infrastructure development progressively takes form.

    Managing Director, Mixta Real Estate (Nigeria) Plc, Mr. Kola Ashiru-Balogun, said the issuances played an important role in implementing the company’s business strategy to develop affordable housing units as part of its modest contribution to bridging Nigeria’s significant housing deficit.

    “The confidence the Nigerian capital market has in us as demonstrated in these issuances is encouraging; we are more than ever committed in our quest to make strategic partnerships and provide innovative solutions whilst utilising effective long-term financing mechanisms,” Ashiru-Balogun said.

    Speaking on behalf of the sponsor to the bonds and commercial papers, Managing Director, FBNQuest Merchant Bank Limited, Mr. Kayode Akinkugbe, said as a full-service investment bank, the company supported Mixta in obtaining bridge finance and advised on the bond and commercial papers  issuances and security structure.

    According to him, FBNQuest Merchant Bank leveraged on its extensive distribution capability to successfully sell the bonds and commercial papers.

    “This transaction enables Mixta to finance affordable housing projects and extends the tenor of its debt portfolio. Listing and quoting on the bonds and commercial papers on FMDQ will provide investors with a transparent and efficient platform for price determination, liquidity and execution of trades,” Akinkugbe said.

    Associate Executive Director, Capital Markets, FMDQ OTC Securities Exchange, Ms. Tumi Sekoni noted that the use of the proceeds of the bonds and commercial papers would help address the nation’s housing and infrastructure gap in a sustainable manner.

    She added that such debt issues would deliver prosperity to Nigerians and further deepen the domestic debt capital market, thus invariably contributing to Nigeria’s development.

    She reiterated FMDQ’s commitment to continue to deliver strategic initiatives towards the development of a highly liquid, deep and well-developed debt capital market in Nigeria.

    Associate Executive Director, Corporate Development, FMDQ OTC Securities Exchange, Ms. Kaodi Ugoji, commended Mixta for achieving what she described as landmark issues.

    She commended parties to the issues for their concerted efforts towards ensuring the success of the issuances.

    She pointed out that through consistent collaboration with its stakeholders, FMDQ will not relent on in its efforts to further deepen and effectively position the Nigerian debt capital market for growth, in support of the realisation of a globally competitive and vibrant economy.

     

  • Sterling Bank lists N33b bonds on NSE, FMDQ

    Sterling Bank Plc yesterday listed its N32.9 billion bond on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange, paving the way for investors in the bond to trade on their units.

    The N32.90 billion Series 2 bond, issued by Sterling Investment Management SPV Plc, a special purpose vehicle of the bank, is an unsecured bond with a tenor of seven years at a fixed coupon rate of 16.50 per cent. The bond is part of a N65 billion debt issuance programme launched by Sterling Bank to support its new business strategy and digital banking.

    Under the new business strategy, Sterling Bank will build expertise and investments in five sectors regarded as growth sectors of the Nigerian economy including health, education, agriculture, renewable energy and transportation.

    Speaking during the listing at the NSE and FMDQ, Managing Director, Sterling Bank Plc, Mr. Abubakar Suleiman, said the success of the bond reflected the increasing appetite of local institutional investors for long term debt instruments and increasing confidence in Sterling Bank as an issuer.

    According to him, the considerable oversubscription of the issue showed investors’ confidence in the bank and further strengthened and diversified the bank’s corporate funding strategy.

    He commended stockbrokers for supporting the bank and assured that the bank will continue to engage the market on its activities.

    He urged capital market operators to continue to support the bank as it continues to explore opportunities to widen its businesses and strengthen is balance sheet.

    Associate Executive Director, Capital Markets, FMDQ OTC Securities Exchange, Ms. Tumi Sekoni commended Sterling Bank for again joining the league of corporate entities whose debt profiles have been raised through the value-packed listings, quotations and noting service offered by FMDQ. Sterling Bank had listed its earlier bond on FMDQ.

    She noted that the listing would contribute to the growth of the Nigerian corporate bond market by injecting renewed confidence into the debt market.

    She assured stakeholders that FMDQ would continue to innovate and provide efficient services, as may be necessary, to support issuers and investors, towards achieving a globally competitive and operationally excellent debt market.

    Partner and Head of Investment Banking, Constant Capital Partners Limited, Mr. Niyi Omojola noted that his firm, the lead issuing house in the bond issue, crafted a unique and innovative investment structure which enabled the Sterling SPV bond share in the same investment grade rating as Sterling Bank Plc, thereby enlarging the range of potential investors in the bond.

    He said the innovative structure protects investors by providing bond-backed credit enhancement while investing in the Tier II capital of Sterling Bank Plc.

    According to him, as a result of the compelling proposition offered by Sterling Bank Plc and the structuring and distribution efforts of Constant Capital, the transaction was extensively oversubscribed.

    Omojola also said the innovation has allowed investors benefit from an enhanced rating, while providing Tier II capital to Sterling Bank Plc.

    Associate Executive Director, Corporate Development, FMDQ OTC Securities Exchange, Ms.  Kaodi  Ugoji,  said listing on FMDQ will avail the bond unprecedented market transparency, unrivalled information disclosure, efficient price formation and improved global visibility, among other benefits.

    She reiterated FMDQ’s commitment to continually align its initiatives towards serving and providing the much-needed support to the players in the DCM.

     

  • Flour Mills lists N20.11b bonds on NSE, FMDQ

    Flour Mills of Nigeria Plc, Nigeria’s largest flour-milling company, at the weekend listed two bonds on the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities Exchange.

    Flour Mills’ N10.11 billion, three-year, 15.50 per cent fixed rate senior unsecured bond due 2021 and N10 billion five-year, 16 per cent fixed rate senior unsecured bond due 2023 were admitted to the NSE and FMDQ. The bonds were issued under the company’s N70 billion bond issuance programme.

    The bond issues were strongly supported by the institutional investors and oversubscribed by 190 per cent within the price guidance. The proceeds of both issuances were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.

    Commenting on the listing, Chairman, Flour Mills of Nigeria, Mr John Coumantaros said the company was delighted to return to the capital markets with such a successful outing especially with the level of interest shown by investors.

    According to him, the response from the market vindicates the company’s decision to have taken this additional step in diversifying its financing options.

    “We are very pleased to have worked with our advisors, Stanbic IBTC Capital Limited (“Stanbic BTC Capital”)as Lead Issuing House, along with ARM Securities Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, United Capital PLC and Zenith Capital Limited as Joint-Issuing Houses, on a highly successful transaction,” Coumantaros said.

    Group Managing Director, Flour Mills of Nigeria, Mr. Paul Gbededo, said the issues would help the company to achieve its strategic objective of sustaining its market leadership position with its foods and agro-allied businesses, while fostering its vision of feeding the nation everyday.