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Tag: FMDQ

  • FMDQ, Thomson Reuters partner to strengthen financial market

    Thomson Reuters and Nigeria’s debt capital and OTC Exchange, FMDQ OTC Securities Exchange, have announced a strategic collaboration to deepen capacity to help drive liquidity and enhance Nigerian financial market visibility to domestic and international investors.

    The two organisations, in a ceremony in Lagos, agreed to partner to help drive Nigeria’s global competitiveness and visibility to global investors.

    FMDQ OTC Securities Exchange Managing Director/CEO, Bola Onadele,  said: “We are pleased to be formalising our partnership with Thomson Reuters as we cooperate towards the development of the Nigerian financial markets. Having sought a like-minded company with similar values and drive to FMDQ, I believe that this partnership will see both parties leveraging the knowledge, experience, expertise and uniqueness of one another, in a bid to deepen the markets’ capacity and enhance its visibility to domestic and international investors.”

    Managing Director for Africa at Thomson Reuters, Sneha Shah, said: “Thomson Reuters has been investing in Nigeria and Africa for over 100 years, and has worked closely with FMDQ and the Central Bank of Nigeria (CBN) to support the development of the market over the years. FMDQ has been a key driver of many of the financial market innovations coming from Nigeria and these are going to be important for other developing markets as well.

    “Nigeria is an economic giant of West Africa and the continent, and it is vital that global companies that want to reach the fastest growing markets in the world have access to the opportunities here. We are excited about the opportunity this partnership brings to help drive sustainable long-term investment into Nigeria.’’

    Part of the action plan includes conducting joint financial markets events that promote transparency and liquidity as well as skills training to educate the market.

    As part of this partnership, Thomson Reuters and FMDQ will work closely across their continental and global offices – including providing FMDQ access to Thomson Reuters’ Innovation Lab in Cape Town, South Africa – to drive innovation in FX, Fixed Income, Risk Management and the Financial Market.

  • SEC okays FMDQ’s clearing house

    Securities and Exchange Commission (SEC) has registered FMDQ Clear Limited, a central clearing house promoted by the FMDQ OTC Securities Exchange.

    In a statement, FMDQ stated that the clearing house will deliver highly efficient post-trade services across Nigeria’s fixed income and derivatives markets, addressing some of the key drivers for the development of the markets.

    The clearing house will ensure risk mitigation, capital efficiency, price transparency, safety, stability, confidence and inclusiveness in the marketplace.

    According to FMDQ, FMDQ Clear has commenced initiatives to ensure that its risk management activities underpin its effectiveness, reliability and long-term sustainability, as it strives to resolve key clearing and settlement issues.

    FMDQ Clear has also formally partnered with Frontclear, which provides third-party settlement guarantee funds (SGFs), to further strengthen the clearing house risk waterfall framework, with a third-party settlement guarantee arrangement that improves on settlement finality, a first of such infrastructure in Africa.

    “The establishment of this clearing infrastructure, FMDQ Clear, will greatly contribute to making the Nigerian inter-bank market globally competitive, operationally excellent, liquid and diverse, in line with FMDQ’s GOLD Agenda for the transformation of the Nigerian financial markets, as participating clearing and dealing members will have expanded access and in turn, be better able to serve the needs of their client base and the real economy,” FMDQ stated.

     

  • FMDQ admits Lapo MfB’s N3.15b bond

    FCMB Capital Markets Limited has acted as financial adviser and Lead Issuing House on the successful fundraising and listing of Lapo Microfinance Bank Limited’s N3.15 billion bond on the FMDQ OTC platform.

    The bond, the first ever by a microfinance bank to raise money in Nigeria’s debt capital market, was priced at 17.75 per cent and has a tenor of five years. The Issue was rated A- by Agusto & Co and BBB+ by GCR, which are investment grade ratings.

    Lapo is a leading Microfinance Bank in Nigeria which commenced operations in 2010. Its banking activities are targeted at micro, small and medium enterprises, particularly women and micro enterprise owners who it provides loans to build their businesses.

    The lender said proceeds from the offer will be used to deepen its business, strengthen its capital base, expand its branchless banking solutions and enter new market segments, including the launch of its agency banking model and the deployment of e-business solutions, among others.

    Speaking during the bond listing in Lagos, the Executive Director of FCMB Capital Markets Limited, Tolu Osinibi, said:‘’we are excited and grateful at having been given the opportunity by Lapo Microfinance Bank to have played a leading role on this landmark transaction, where FCMB Capital Markets acted as financial adviser and the Lead Issuing House on the first ever bond issuance by a microfinance Institution in Nigeria’s capital markets.

    Also speaking, the CEO of Lapo Microfinance Bank, Godwin Ehigiamusoe, said, ‘’the gap between the demand by micro, small and medium businesses and the little supply is still huge. Lapo Microfinance Bank was only able to deliver loans valued at N135.7 billion in 2017. The capital market remains one of the most viable and affordable options for medium and long term financing for on-lending. We have therefore made a very sound decision”.

     

     

  • Stanbic IBTC lists three mutual funds on FMDQ

    Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings Plc, has listed three mutual funds on the FMDQ OTC Securities Exchange. It is also providing existing and new investors with additional opportunity to invest and trade on the funds.

    The three funds-Stanbic IBTC Money Market Fund (SIMM), Stanbic IBTC Bond Fund (SIBOND) and Stanbic IBTC Dollar Fund (SIDF), were all listed on February 12, 2018.

    Chief Executive Officer, Stanbic IBTC Asset Management Limited (SIAML), Mrs. Bunmi Dayo-Olagunju, said the fixed-income mutual funds provide investors with opportunities to diversify their portfolios considering the volatility in the equities and commodity markets.

    She outlined the benefits of mutual funds or collective schemes to include flexibility, liquidity, steady returns, professional management, and risk reduction among others, noting that these benefits make mutual fund a good investment alternative for a discerning investor.

    She assured that Stanbic IBTC will continue to leverage its expertise in asset and wealth management as well as its rich heritage in corporate and investment banking to provide quality products and services that will not only deepen the market but enhance transparency, value and investor confidence.

    Stanbic IBTC Money Market Fund, with close to N190 billion in net asset value as at February 09, 2018, is currently the largest open-ended mutual fund in Nigeria. Its assets are invested in low-risk money market securities with financial institutions in Nigeria with a minimum rating of “BBB” by a local rating agency recognised by the Securities & Exchange Commission. SIMM is suitable for investors with low risk appetite whose objective is capital preservation while generating a steady stream of income.

    Stanbic IBTC Bond Fund was conceptualised to cater for investors with low risk appetite who want no exposure to capital markets but require liquidity and at the same time want to earn competitive returns available in fixed income markets. SIBOND provides easy unrestricted access to Nigeria’s rapidly developing bond market, enabling individual and corporate investors to invest in a diversified portfolio of bonds and other fixed income securities.

    The bond fund aims to achieve competitive returns on its assets while safeguarding capital by investing in a diversified portfolio of high quality bonds issued by government, supranational and corporate bodies. Minimum subscription to both SIMM and SIBOND is N5,000.

    The Stanbic IBTC Dollar Fund provides retail and institutional investors the opportunity to seek exposure in attractive dollar-denominated securities to serve as a devaluation hedge as well as to optimise returns on investments. SIDF offers investors outlets for investing an initial minimum of $1,000 and subsequent minimum of $500.

  • FMDQ records N130.17t turnover in 11 months

    FMDQ records N130.17t turnover in 11 months

    FMDQ OTC Securities Ex change recorded a turnover of N130.17 trillion in the first 11 months of 2017, according to provisional data provided by the over-the-counter platform for debt securities.

    The turnover included all products traded on the FMDQ secondary market including foreign exchange, treasury bills, sovereign bonds, other bonds issued by agency, sub-national, corporate and supranational institutions, Eurobonds and money market instruments such as repos and buy-backs and unsecured placements and takings. The turnover excluded primary market auctions in treasury bill and bonds.

    The data, collated from the weekly trade data submissions by FMDQ dealing-member banks, represented trades executed amongst the dealing-member banks, dealing-member banks clients and dealing-member banks and Central Bank of Nigeria (CBN).

    With average exchange rate of N317.24 per Dollar, the 11-month turnover stood at $410.32 billion. Average daily turnover stood at N565.96 billion or $1.78 billion during the 230-day trading session.

    A breakdown of the turnover showed that treasury bills accounted for the largest turnover of N56.14 trillion. Repurchase agreements and buy-backs followed with the second largest turnover with N29.16 trillion.

    Others included foreign exchange N18.70 trillion, foreign exchange derivatives, N15.51 trillion; sovereign bonds, N9.04 trillion; other bonds N27.85 billion; Eurobonds N82.14 billion; unsecured placements and takings N1.49 trillion and money market derivatives, which recorded a turnover of N22.9 billion.

    Also, 2017 saw a steady flow of transactions and activities in the Naira-settled OTC foreign exchange (FX) futures market. The market, which was borne out of the desire to address the need for risk management in the Nigerian FX market has continued to show appreciable potential as an effective hedging product for investors, businesses and government institutions alike.

    By December 7, 2017, $10.38 billion worth of OTC FX Futures contracts have traded so far with the CBN remaining steadfast in its commitment to ensuring the success of the market. As it has been the norm for 17 maturities on FMDQ, the 18th OTC FX Futures contract matured and settled successfully on December 27, 2017.

    Having ceased trading on December 20, 2017, in line with the OTC FX Futures market operational standards, the 18th OTC FX Futures contract, NGUS DEC 27 2017, with notional amount $499.20 million, matured and settled on FMDQ. This brings the total value of contracts so far matured on FMDQ to $7.35 billion.
    A new contract, NGUS DEC 26 2018, for $1.00 billion at $/N362.84 has been introduced by the CBN to replace the matured contract.

  • FMDQ lists infrastructure fund

    FMDQ OTC Securities Exchange on Monday listed the Nigeria Infrastructure Debt Fund (NDIF), a mutual fund promoted by the Chapel Hill Denham Management Limited. Chapel Hill had established a N200 billion issuance programme for the NIDF and subsequently issued the first series under the programme- Series I 49.450 million units at N101.20 each.

    The fund, reputed as the first-ever listed infrastructure debt fund in Sub-Saharan Africa, is a close-ended fund and has its investment focus on the traditional infrastructure sectors including transport, power, renewable energy, utilities, energy infrastructure, logistics and other public-private-partnership investments.

    The fund aims at enabling investors to have access to infrastructure as an asset class, while providing the benefit of predictable returns available from long-dated infrastructure debt investments.

    Chief Executive Officer, Chapel Hill Denham Group, Mr. Bolaji Balogun said infrastructure funding has been a major investment theme in the firm over the last decade.

    “We are very proud of this pioneering role and NIDF is a natural fit with our commitment to developing Nigeria and Africa’s productive infrastructure,” Balogun said.

    He commended the progressive regulatory environment, which enabled NIDF to be conceptualized as a reaffirmation of the forward-thinking approach of National Pension Commission (PenCom), Securities and Exchange Commission (SEC) and FMDQ.

    Balogun, who doubles as chief investment officer of the NIDF pointed out that infrastructure debt provides a uniquely attractive combination of long term, stable, predictable income and a yield higher than that available from government bonds.

    Managing Director, FMDQ OTC Securities Exchange, Mr. Bola Onadele called on governments in Nigeria to unlock the potentials of the Nigerian economy by facilitating private sector funding for infrastructure.

    According to him, there is need for government reforms and regulation to position key sectors to be commercially viable to galvanise huge capital to infrastructure.

    He added that the FMDQ was working in collaboration with other key stakeholders to facilitate the development of a sustainable finance strategy for the country.

  • FSDH Merchant Bank to list CPs on FMDQ as N30b issuance kicks off

    SDH Merchant Bank Limited will list the notes from its commercial papers (CPs) issuance programme on the FMDQ OTC platform to facilitate active secondary trading on the CPs as the wholesale bank successfully launched the first tranche of its N30 billion CP programme.

    FSDH had established a N30 billion CP programme on August 23, 2016 and successfully launched its debut commercial paper issuance to raise up to N15 billion in the Nigerian money market with the issue of a Series 1 90-day and Series 2 269-day CP. The CP offers were opened to investors on August 24, 2016 and subsequently closed on August 29, 2016 with subscription levels of more than N17 billion. The merchant bank however elected to allot N14.98 billion to investors across both series, in line with its initial target amount.

    FSDH stated that the CP programme will afford it periodic access to the money market for short term funding as and when required.

    The wholesale bank stated that the funds raised from the now concluded Series 1 and 2 issuance will be applied by it for its general banking asset and liability management purposes including replacement of maturing wholesale liabilities.

    The FSDH CP programme is the first ever to be established by a merchant bank in Nigeria under the new guidelines on commercial paper from the Central Bank of Nigeria (CBN), published in 2009.

    Subscription analysis showed that there was strong retail and institutional investors including pension funds, asset managers, insurance companies, trustees and high net worth individuals’ participations in the offer.

    Managing director, FSDH Merchant Bank Limited, Mr. Rilwan Belo-Osagie, said the oversubscription to the maiden issuance demonstrated confidence in the FSDH brand as evidenced by the acceptance of the issues in the market by the diverse categories of investors to whom the securities were distributed.

  • PenCom, FMDQ sign deal for improved governance 

    PenCom, FMDQ sign deal for improved governance 

    FMDQ OTC Securities Exchange has entered into Regulatory Supervision Collaboration Agreement with the National Pension Commission (PenCom). 

    In a statement yesterday,  PenCom Director-General, Mrs. Chinelo Anohu-Amazu, said the agreement would enable the realisation of PenCom’s investment objectives of pension assets and maintenance of fair returns on investment (RoI).

    Chair, Board Regulation and Risk Management Committee, FMDQ, represented by independent non-executive Director, Ms. Daisy Ekineh, its Managing Director/CEO, Mr. Bola Onadele and representatives of the Central Bank of Nigeria (CBN) Banking Supervision and Financial Markets Departments and other key representatives from FMDQ and PenCom.

    Mr. Onadele said the partnership “will seek to achieve, among other things the Commission’s objectives (as outlined in the Pension Reform Act, 2014), through data access and visibility of its supervisees’ (Pension Fund Administrators (PFAs)) transactions on FMDQ; improved transparency of all PFAs’ transactions in the Nigerian fixed income market, as well as the money market through the applicable system(s); capacity building sessions for relevant PenCom staff on the use of the applicable system(s); and the development of performance benchmarks for fixed income asset classes: bonds (sovereign, sub-national and corporate), money market securities (treasury bills, commercial papers and others) and fixed deposits.”

  • Transcorp Hotels lists N10b bond on Nse, Fmdq

    Transcorp Hotels lists N10b bond on Nse, Fmdq

    Transcorp Hotels Plc – the hospitality subsidiary of Transnational Corporation of Nigeria Plc, yesterday listed its Series 1 N10billion  bond on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange.

    The company successfully closed its Series 1 & 2 bonds at the last quarter of 2015 and has raised a total of N19.758billion. Series 1 which is now listed, is a 7-year bond issued at 16.00 per cent fixed rate and maturing in 2022.

    With this development, the company’s bonds are now available at the bond markets, and the investing public can trade and derive value from their investments. Such a major accomplishment reiterates the company’s resolve to continuously deliver value to all its stakeholders.

    During the event at the NSE, the Managing Director/CEO, of Transcorp Hotels Plc, Valentine Ozigbo, expressed his excitement over the successful completion of the company’s Series 1 & 2 bonds.

    He said  Series 1 was oversubscribed by 30 per cent,  while Series 2 was 98 per cent subscribed, indicating a testimony of undeniable investor confidence to the achievements and leadership of the company.

    “By successfully raising these funds, we now have sufficient funding for our immediate priority projects, especially the upgrade and expansion of the multi –award winning and iconic Transcorp Hilton, Abuja,” Ozigbo said.

  • FMDQ OTC lists N8b NMRC bond

    Investors in the N8 billion Nigeria Mortgage Refinance Company (NMRC) bond now have a  secondary market to trade on their investments as the FMDQ OTC admits the mortgage bond to its official list.

    The N8 billion NMRC bond carries a coupon rate of 14.9 per cent and due on 2030. The N8 billion bond is part of the company’s N140 billion Medium-Term Note Programme.

    The establishment of the NMRC in 2013 set in motion the course towards homeownership from accessibility to affordable, adequate and quality housing in the Nigerian economy, through the promotion and development of the primary and secondary mortgage markets in Nigeria.

    However, a crucial  aspect in the success of the NMRC model being the raising of finance from the debt capital market through regular and large issuances of bonds. The first tranche was the N8.0 billion that will be listed on the FMDQ OTC.

    FMDQ OTC stated that the high-profile listing of the NMRC also highlighted the financial market development efforts of the over-the-counter market.