FMDQ OTC Securities Exchange (FMDQ) has admitted Sterling Investment Management SPV Plc N7.965 billion Series 1, 7-Year 16.50 per cent Fixed Rate Unsecured Bond, under a N65.00billion Debt Issuance Programme on its platform.
Vice President & Divisional Head, Marketing & Business Development at FMDQ, Ms. Tumi Sekoni, commended the issuer for successfully raising N7.96billion from the Nigerian DCM, notwithstanding the current economic climate.
She noted that the listing would contribute to the growth of the Nigerian corporate bond market, invariably injecting renewed confidence into the DCM.
Sekoni noted that the FMDQ Listings & Quotations Service was continually refined and tailored to provide, among others, a unique opportunity for issuers to raise the profiles of their issues and access a deep pool of capital, thereby meeting their long-term funding needs even as investor confidence is promoted through the availed transparency, information disclosure, price formation and visibility.
Executive Director, Sterling Bank Plc, Mr. Abubakar Suleiman noted, “The last time the Bank assessed the bond market was in 2011, and expressed his elation at the confidence placed in the institution by investors who participated in the offer despite the current volatility in the Nigerian financial market.
He acknowledged FMDQ’s contribution to the growth of the Nigerian DCM by facilitating active secondary market trading, and opined that the Bank was offering greater value to its esteemed investors by listing on FMDQ to enhance the liquidity of the bonds”.
Following the presentation to the sponsor of the bond on FMDQ, Partner at Constant Capital Partners Limited Mr. Niyi Omojola stated that Constant Capital, the lead issuing house in this transaction, crafted a unique, innovative investment structure, which enabled the Sterling SPV Bond share in the same investment grade rating as Sterling Bank Plc, enlarging the range of potential investors in the bond.
The innovative structure, he noted, protects investors by providing Federal Government of Nigeria bonds-backed credit enhancement while investing in the Tier II Note of Sterling Bank Plc.