FMDQ admits N7.96bn Sterling Investment Management SPV Plc Bond

FMDQ OTC Securities Exchange has welcomed another listing of Sterling Investment Management SPV PLC N7.965 billion Series 1, Seven-Year 16.50 per cent Fixed Rate Unsecured Bond, under a N65 billion Debt Issuance Programme on its platform.

Formally welcoming the listing at a ceremony on Monday, at the FMDQ offices, Vice President & Divisional Head, Marketing & Business Development at FMDQ, Ms Tumi Sekoni, congratulated the issuer for successfully raising N7.96 billion from the Nigerian DCM, notwithstanding the current economic climate.

She further highlighted that the listing would contribute to the growth of the Nigerian corporate bond market, invariably injecting renewed confidence into the DCM.

Sekoni went on to assure all parties 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.

Ahead of signing the Bond Listings Register, Executive Director, Sterling Bank PLC Mr. Abubakar Suleiman, noted: “the last time the Bank accessed 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 Ltd., Mr. Niyi Omojola, stated: “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 commented, protects investors by providing Federal Government of Nigeria bonds-backed credit enhancement while investing in the Tier II Note of Sterling Bank PLC.

This innovation has allowed investors benefit from an enhanced rating, while providing Tier II capital to Sterling Bank PLC”.