Nigerian companies storm FMDQ for short-term financing, raise N165bn in August

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BY BAMIDELE FAMOOFO

Uba Group

Nigerian Breweries Plc, C&I Leasing Plc and Sundry Foods Limited were some of the corporate institutions that visited the FMDQ Exchange in August to raise N165 billion to grow their businesses in August.

The leading brewer, Nigerian Breweries Plc, was bullish in the market with its N100 billion commercial paper issuance in the review month.

Capital raise in the month of August was 57.14 percent higher than N105 billion raised by five companies in the same market in July.

The FMDQ has successfully admitted of 102 securities, valued at N3.36 trillion, on its platform so far in the year 2022.

According to the Exchange, it attests to the efficient and uniquely tailored listing and quotation service it offers.

“As a securities exchange with a commitment to facilitate growth and development in the Nigerian debt markets and the Nigerian economy at large, FMDQ Exchange will continue to promote an efficient, transparent, and well-regulated market, which will attract and retain both domestic and foreign investors,” it noted.

FMDQ welcomed the registration of the Nigerian Breweries Plc N100 billion commercial paper issuance programme on its platform in August 2022.

Through the registration of the CP, which is sponsored by Stanbic IBTC Capital Limited (the Lead Sponsor), FCMB Capital Markets Limited and FBNQuest Merchant Bank Limited, all Registration Member (Quotations) of the Exchange, the Issuer is availed the opportunity to raise short-term finance from the Nigerian debt markets at a time it deems suitable, through CP issuances, within the CP Programme limit.

C&I Leasing in the same period sought to raise N50billion from the market to help expand its business. C & I Leasing is a diversified, leasing and business service conglomerate providing support services to various indigenous and multinational organisations in West Africa along three lines: Fleet Management, Personnel Outsourcing, and Marine Service.

The company provides transportation logistics solutions in the form of car and marine vessel rental, fleet management and automobile distribution through its wholly owned subsidiaries: C & I Marine, C & I Fleet Management, C & I Outsourcing, and CITRACKS.

The successful registration of this CP Programme, which is sponsored by Cordros Capital Limited (the Lead Sponsor), and Kairos Capital Limited, both Registration Member (Quotations) of the Exchange, tactically positions the Issuer to raise short-term finance from the Nigerian debt markets at strategically viable times during the CP Programme validity, through CP issuances, within the CP Programme limit.

Sundry Foods Limited, one of Nigeria’s leading food services companies, operating in the quick service restaurant, bakery, and catering segments, also approached the debt market for N10 billion financing. The Company has over 130 branches across Nigeria with a variety of franchises that include Kilimanjaro, Pizza Jungle, Nibbles Creamery, Nibbles Bakery, Kiligrill, and Sundry Foods Services.

The successful registration of this CP Programme, which is sponsored by CardinalStone Partners Limited (the Lead Sponsor), SCM Capital Limited and Stanbic IBTC Capital Limited, all Registration Member (Quotations) of the Exchange, strategically positions the Issuer to raise short-term finance from the Nigerian debt markets at specific times during the CP Programme validity it deems strategically viable, through CP issuances, within the CP Programme limit.

Speaking on the successful CP Programme registration, the Managing Director, Sundry Foods Limited, Ebele Enunwa stated “we remain committed to harnessing the full potential of Sundry Foods Limited and creating superior value to all our stakeholders. This is evident in the growth we have experienced in the past year, which has been as a result of visionary leadership and a defined growth strategy. We look forward to engaging market participants under this N10 billion CP Programme.”