Financial Markets Dealers Quotations (FMDQ) has admitted N16.79 billion commercial paper of UACN Property Development Company to its OTC securities Exchange.
It was another notable stride in FMDQ’s drive to create a vibrant and successful commercial paper market, as the UPDC became the fifth company admitted for quotation following the release of the Rules.
This commercial paper represents series 1 under the organisation’s ₦24 billion commercial paper Issuance programme. In commemoration of this quotation, a Quotation Ceremony was held at the FMDQ offices to formally welcome the commercial paper on the Exchange.
In his remark, Managing Director/CEO, FMDQ, Mr. Bola Onadele-Koko, congratulated UPDC Plc and highlighted that the quotation of this real sector commercial paper, was evidence of the positive progression in the Nigerian commercial paper market, serving to instil confidence in the possibilities of the Nigerian financial market.
He stated that FMDQ, as the market organiser, desirous of building a sustainable commercial paper market in the Nigerian financial market space, promotes credibility for quoted commercial papers, through a highly efficient registration process and the provision of invaluable information, instituting financial market infrastructures, in line with global standards, to drive, among others, transparency, governance, market oversight, integrity and market liquidity with a view to protecting stakeholder interests.
Ahead of the signing of the FMDQ Commercial Paper Quotations Register and the presentation of the FMDQ CP Quotations Certificate, Mr. Ogunniran, in his address acknowledged that the commercial paper issuance had afforded UPDC a better opportunity to successfully diversify its short-term funding sources at a 25per cent reduced cost, thereby enhancing their value-creating capability for UPDC’s various stakeholders.
Also speaking at the Ceremony, Managing Director UPDC Plc, representing the issuer of the Commercial Paper, Mr. Kayode Akinkugbe, noted that, “the remarkable success of the UPDC Commercial Paper issuance is an affirmation of the growth of the commercial paper market in recent years. We are indeed pleased to have partnered with UPDC in establishing its inaugural commercial Programme and achieving the significant oversubscription recorded at its debut launch.
“The success of the deal was influenced by the innovative credit enhancement features developed by FBN Capital Limited and Coronation Merchant Bank Limited. As is with all our transactions in FBN Capital Limited, the UPDC PLC commercial paper benefitted from an active and vibrant marketing strategy aimed at achieving wide distribution.”
Amongst the attendees at this prestigious Ceremony were, Mr. Hakeem Ogunniran, , Chairman & Director, FBN Capital Limited and Mr. Abubakar Jimoh, Managing Director/CEO, Coronation Merchant Bank Nigeria Limited, represented by Mr. Aigbovbioise Aig-Imoukhuede, Executive Director, Coronation Merchant Bank Nigeria Limited, both FMDQ Registration Members (Quotations) and co-sponsors of the issue on the platform.
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