FMDQ Securities Exchange (FMDQ Exchange) has listed two ground-breaking bonds valued at N53.12 billion, paving the way for investors to trade on the bonds.
FMDQ Exchange at the weekend approved the listing of Fidelity Bank Plc’s Series 1 N41.21 billion Fixed Rate Subordinated Unsecured Bond. The bond was issued under the bank’s N100 billion bond issuance programme.
FMDQ Exchange also listed TSL SPV Plc’s N12.0 billion Series 1 Guaranteed Fixed Rate Infrastructure Bond. The bond was issued the logistics’ company N50 billion bond issuance programme. Transport Services Limited (TSL) had set up a special purpose vehicle (SPV) to raise finance through the listing of debt securities which would be used to boost the company’s business expansion and restructure debts over a specified period.
TSL is a leading provider of customised logistics and transportation solutions in Nigeria with existing regional logistics services to clients in the oil and gas, mining and construction, fast moving consumer goods (FMCG) and agricultural sectors.
Fidelity Bank will use the net proceeds of its bond issue to fund key activities that will ultimately translate in the development of the banking sector and the Nigerian economy at large.
Managing Director, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe, said the bank’s bond was a landmark bond issuance as it was by “far the largest local bond transaction by any commercial bank in Nigeria, thus validating the continued investor confidence in our well-experienced management team”.
She noted that by registering and listing the bonds on FMDQ Securities Exchange, Fidelity Bank has provided its bondholders a robust and transparent platform that will improve the liquidity and visibility of their investments.
Co-Chief Executive Officer, Planet Capital Limited, Dr. Tony Anonyai said success of the issuance firmly established Fidelity Bank’s position as one of the leading banks in the country and further sets it on the strategic trajectory for market dominance in the coming years.
“This listing makes for liquidity and price discovery in the marketplace which is a sweetener for the investors,” Anonyai said.
Co-Chief Executive Officer, Planet Capital Limited, Mr. Efe Akhigbe, said Planet Capital was pleased to sponsor the listing of the bond, having led and collaborated with a club of investment banking firms that advised on the transaction.
Managing Director, TSL SPV Plc, Mr. Ayodeji Wright said TSL remains committed to delivering its vision of providing bespoke supply chain and logistics solutions within Nigeria, and to sub-Saharan Africa.
According to him, the unprecedented issuance of the N12 billion 10 per cent fixed rate, 10-year tenor bond, the first in Nigeria’s transportation and logistics sector, will undoubtedly be the springboard to provide the financial reinforcement to TSL’s business strategy and strong operating model.
“Its proceeds will in part be used to stimulate an atmosphere for profitable growth for the business and in part for the improvement of the existing business,” Wright said.
Head, Debt Capital Markets, Stanbic IBTC Capital Limited, Mr. Tokunbo Aturamu noted that Transport Services, the sponsors of TSL SPV, is a key player in the crucial logistics and distribution sector of the Nigerian economy.
He commended board and management of TSL for the opportunity given to Stanbic IBTC Capital to act as the lead issuing house to the landmark bond issue.
Managing Director, Infrastructure Credit Guarantee Company Limited, Mr. Chinua Azubike, said the success of TSL SPV issuance demonstrated InfraCredit’s continuing support for inclusive access to long-term local currency finance for infrastructure development and the deepening of the domestic debt capital markets with good quality asset classes for domestic investors.
According to him, TSL, over its 19-year history, has built a strong pedigree as a highly experienced and innovative transport and logistics service provider particularly in safety, maintenance, and journey administration.
“As we expand and diversify our guarantee portfolio to the transportation sector and given the importance of transport infrastructure to Nigeria’s economic recovery, we believe that our role remains vital in enabling businesses to deliver more essential infrastructure that can drive a clear and sustainable development impact on economic activities as well as improve the livelihoods of Nigerians,” Azubike said.
FMDQ reiterated its commitment to articulating and pioneering, with the support of its key stakeholders, innovative ways to improve and make the Nigerian financial markets globally competitive, operationally excellent, liquid and diverse.
FMDQ noted that the concurrent listings and quotations by corporates across diverse sectors on its platform continue to validate FMDQ Exchange as the choice platform for the registration, listing and quotation of debt securities in the Nigerian financial market.
FMDQ added the growing number of issuers on its platform also lays credence to the innovation, efficiency, and operational excellence for which it is reputed and also a mark of endorsement by issuers, investors, and other market stakeholders.
FMDQ pointed out that it remains Africa’s first vertically integrated financial market infrastructure (FMI) group providing a one-stop platform for the seamless and cost-efficient execution, risk management, clearing, settlement and depository services, as well as data and information services across the debt capital, foreign exchange and derivatives markets in Nigeria. FMDQ Group includes three subsidiaries: FMDQ Securities Exchange Limited, FMDQ Clear Limited and FMDQ Depository Limited. (The Nation)
