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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