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By Chinwendu Obienyi
As leading organiser of the Nigerian Debt Capital Market (DCM) and catalyst for infrastructure development, the FMDQ Exchange through its Board Listings and Markets Committee, has so far approved the registration of commercial paper (CPs) for nine companies in its platform.
The Exchange said it continues to propel businesses, corporates and government entities to achieve their strategic objectives and ensure prosperity within the Nigerian financial markets.
Daily Sun investigations reveal that nine companies issued CPs worth N248.88 billion to improve their balance sheet and scale up their operations during the half-year (H1) ended June 30, 2022. The companies include; MTN Nigeria, Lekki Gardens Estate, Nova Merchant Bank, UAC Nigeria Plc, FBNQuest Merchant Bank, RMB Nigeria, Veritasi Homes, United Capital Plc and Neveah Limited.
MTN Nigeria Communications Plc for instance, led with the issuance of an historic N127 billion Series 1 & 2 CP under its registered N150 billion programme. The issuance consisted of two tenors – a 184-day series issuance priced at a 7.50 per cent yield and a 254-day Series 2 issuance priced at an 8.50 per cent yield.
According to MTN, the issuance was in line with its strategy to diversify financing options, with the proceeds being deployed towards working capital and general corporate purposes.
Similarly, Lekki Gardens Estates Limited, recently signed a N25 billion CP approved for it by the FMDQ Security Exchange Limited, while NOVA Merchant Bank, in the period under review, announced the issuance of N20 billion Series 1 & 2 CP issuance.
Also listed by the market was UAC of Nigeria Plc which completed its N18.7 billion Series 1 and 2 CP issuance under an established N45 billion programme.
According to disclosures filed to the Nigerian Exchange Limited (NGX), the CP issuance comprised two tenors; a 90-day Series 1 issuance priced at 8 per cent yield, and a 181-day Series 2 issuance which priced at 8.25 per cent yield.
This was as FBNQuest Merchant Bank Limited, a subsidiary of FBN Holdings Plc issued a N15 billion note to investors with Rand Merchant Bank (RMB) Nigeria Limited selling N15 billion in CPs to investors.
Veritasi Homes and Properties signed its CP programme worth N10 billion and according to the company, the CP Programme will position the company to raise finance for a tenor up to 270 days from the debt market at a time in the future it deems suitable while United Capital Plc, during the period under review issued N12.48 billion Series 8 CP under its N50.00 billion CP Issuance Programme on its platform. Neveah Limited, on its part, announced the quotation of its N5.7 billion Series 3 and Series 4 CP issuances on the FMDQ Exchange.
According to a statement from the company, both Series 3 and 4 CP issuances were well received and subscribed to by a wide universe of investors including asset managers and High Net worth Individuals (HNIs).
Commenting on the trend of listings, the FMDQ in a statement observed that as the Nigerian DCM continues to witness significant activity with diverse corporate institutions tapping the market as an efficient alternative to meeting their funding and liquidity requirements, it will continue to provide timely and cost-efficient services to support its stakeholders, particularly issuers and investors, towards accessing capital, managing risks and invariably, improving their corporate profile.
