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Commercial Papers: Stakeholders Excited Over FMDQ’s Quotation Of Total Nigeria PLC, Others

-by our correspondent.

Many private and public corporate institutions in the country are counting on the Nigerian Commercial Paper (“CP”) market, under the apex private Exchange, FMDQ Securities Exchange Limited , to provide the leverage needed to survive in 2021 after a turbulent 2020 aided by the ravaging covid-19 pandemic.

FMDQ, has through innovative evolution continued to provide a credible and efficient platform for the development of the commercial paper market in Nigeria as well as tailor its Listings and Quotations services to suit the needs of issuers and its Registration Members (sponsors of the issue on FMDQExchange).

Following the due diligence process, the Exchange under its ₦30.00 billion CP Issuance Programme through its Board Listings and Markets Committee, has approved the quotation of the Total Nigeria PLC’s  ₦2.25 billion Series 1 and ₦12.75 billion Series 2 Commercial Papers .

The Board also approved the Mixta Real Estate PLC ₦2.00 billion Series 32 Commercial Paper under its ₦20.00 billion CP Issuance Programme, as well as the registration of the Valency Agro Nigeria Limited ₦20.00 billion Commercial Paper Programme, on its platform.

In a statement FMDQ noted that the debut entry of Total Nigeria PLC (Total Nigeria) into the CP market, despite a volatile period for the oil and gas industry caused by the COVID-19 pandemic, demonstrates innovation and confidence in the Nigerian debt capital market (DCM) towards supporting the vibrancy of the sector and the resuscitation of the Nigerian economy.

“The issue attracted significant demand from a wide range of investors – resulting in a subscription level of over 4 times the initial issue size – a demonstration of investor confidence in the company.” The statement read.

the Managing Director of Total Nigeria, Imrane Barry, thanked investors for supporting the company’s debut Issue and commended the financial advisers, Stanbic IBTC Capital Limited and FBNQuest Merchant Bank Limited, for ensuring the success of the Issue despite the challenging environment.

“The Programme was set up to enable the company further broaden its sources of capital by accessing funding from the Nigerian debt capital markets, while also reducing its overall funding costs”. He said .

Also speaking on the quotation, Head of Debt Capital Markets, Stanbic IBTC Capital, Tokunbo Aturamu, expressed delight that Total Nigeria has joined the growing list of blue-chip corporates who have embraced CP issuances in the Nigerian debt capital markets as a means of funding their working capital requirements.

In the same vein, the Managing Director of Valency International Pte Ltd, Sunil Dhanuka, commended the successful registration of Valency Agro’s ₦20.00 billion CP Issuance Programme and FMDQ for the seamless process despite the COVID-19 pandemic and the various restrictions.

“In line with our vision to grow within the agricultural value chain in Nigeria, Valency Agro is committed to ensure the growth of the Agriculture sector through our deep involvement in Cashew, Sesame, Cocoa and other produce. Proceeds from this CP Programme will be used towards meeting the midterm working capital requirements of the various agricultural produce and on value addition prior to export”. Dhanuka said.

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