Monday, 28 September 2015

FMDQ OTC to List N8.0bn NMRC Bond



By - Goddy Egene

FMDQ OTC Plc  will on Wednesday list Nigeria Mortgage Refinance Company (NMRC) N8.0 billion bond (14.9 per cent July-2030) two weeks after  the securities exchange  listed Wema Bank Plc N8.15 billion Series 1 Commercial Paper (CP).

The N8.0 billion NMRC with coupon rate of 14.9 per cent and due on 2030 is under 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.

According to the platform, it is delighted on the planned listing.
“We expect among others, the issuer, represented by the Chief Executive Officer of NMRC, the issuing house, represented by the Managing Director of Dunn Loren Merrifield Advisory Partners, as well as the former Coordinating Minister of the Economy, being one of the foundational members of the NMRC initiative,” the securities exchange said.

While speaking during the listing of Wema Bank CP, the Managing Director/CEO of FMDQ OTC, Mr. Bola Onadele Koko, noted that as a securities exchange, FMDQ promotes credibility for quoted CPs, through a highly efficient registration process.

“CP issuers quoting their securities on FMDQ gain access to a wide range of knowledgeable and capitalised investors through FMDQ members.
Investors, on the other hand, enjoy improved liquidity which serves to ensure ease of entry and exit from the CP market,” he said.

He added that the CP, like other securities including bonds and treasury bills, gains access to the full complement of an FMDQ quotations service, which includes but not limited to the global visibility through its inclusion to the FMDQ Bloomberg E-Bond trading system and on the quotations page of the FMDQ website. Others include the transparency drive which is also characterised by continuous disclosure of relevant information (such as issuer, issuance type, and outstanding value and issuer history) on instruments quoted on its platform.

In his remarks, the MD/CEO, Wema Bank Plc, Mr. Segun Oloketuyi said six years ago, the bank took a decision to refocus its operations and build a sustainable institution.

“The bank’s transformation was implemented in three phases, firstly to stabilise the bank, secondly to prepare the building blocks for growth and thirdly to go for growth. We are now within the third phase of the transformation project and the official listing of the Wema Bank CP is a testament of the success of the ongoing transformation project. As the bank continues to build on the success recorded in the various initiatives embarked upon, there has been an increase in patronage, clientele and transaction dynamics. Similarly, commercial customer transactions have increased, hence, the need to meet the short cycle financing needs of these customers,” he said.

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