FMDQ to admit inaugural listing of FGN Eurobonds

FMDQ to admit inaugural listing of FGN Eurobonds

FMDQ OTC Securities Exchange said it has concluded all arrangement to admit the pioneer listing of the $1.00billon Federal Government of Nigeria Eurobond to its platform.
This was in order to further develop the Nigerian financial markets, the OTC Exchange in an unprecedented event in the history of the Nigerian debt capital market.
The FGN had announced the pricing of its offering of $1.00 billion Notes (Eurobond) under its $1.00billion Global Medium-Term Note Programme.
 A report made available to The Point, states, “following a series of engagements by FMDQ on the importance of promoting and supporting economic development in the country, through the opening of Eurobonds to the domestic DCM via the OTC Exchange’s platform, this welcome and laudable development, which market participants believe will set the pace for global competitiveness and invariably deepen the Nigerian financial markets, in no small measure, lays credence to the underlying objectives for the birth and operational mandate of FMDQ,”
  According to the report, the issuance of the $1.00billion FGN Eurobond is aimed at fostering economic development and will serve to rejuvenate the vibrancy of the nation’s Forex market.
“This is the first-time the sovereign’s Eurobond will be considered for listing on a domestic exchange, following the nation’s first and second outings to the international capital markets in 2011 and 2013 respectively.

“This most commendable consideration follows the decision of the Debt Management Office, Nigeria, (the authority under which the FGN issues Bonds and Treasury Bills) and the Ministry of Finance to list the Eurobond on an efficient domestic securities exchange such as FMDQ to deepen and support the development of the local DCM.

“In streamlining its processes and ensuring an efficient time to market for debt securities, FMDQ, being Nigeria’s foremost debt capital-focused OTC securities exchange has continued to provide a highly resourceful platform for the registration, listing of Bonds (Sovereign, Agency, Sub-national, Corporate, Supranational, as well as Eurobonds and Sukuk), Funds and the quotation of Commercial Papers, Treasury Bills and other short-term securities as may arise from time to time, to meet the needs of the market participants,” the statement read.
    Whilst currently providing improved transparency, effective price formation and enhanced secondary market liquidity through its Dealing Members, who are responsible for circa 99.00 per cent of the secondary market trading activity in FGN Bonds and Nigerian Treasury Bills on FMDQ, the OTC Exchange, in admitting the $1.00bn Eurobond for listing and trading, will continue to lend its itself as a worthy and operationally excellent platform, serving as the point of integration between the domestic and international markets.
The OTC Exchange, since its debut into the Nigerian financial market landscape, has been granted trading status for $1.50billion of the previously issued FGN Eurobonds and $3.15billion of Eurobonds issued by Nigerian companies.