Having successfully met the requirements as contained in the FMDQ Commercial Paper (CP) Quotation Rules (the Rules), and subsequent to the approval of the FMDQ Board Listings, Markets and Technology Committee, the UACN Property Development Company (UPDC) PLC N16,799,893,000.00 CP (UPDC CP) was admitted for quotation on FMDQ OTC Securities Exchange (“FMDQ” or “the Exchange”). This is another notable stride in FMDQ’s drive to create a vibrant and successful CP market, as the UPDC CP became the fifth CP admitted for quotation following the release of the Rules. This CP represents series 1 under the organisation’s ₦24,000,000,000.00 CP Issuance Programme. In commemoration of this quotation, a Quotation Ceremony was held at the FMDQ offices to formally welcome the CP on the Exchange.
Amongst the attendees at this prestigious Ceremony were, Mr. Hakeem Ogunniran, Managing Director UPDC PLC, representing the issuer of the CP; Mr. Kayode Akinkugbe, 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. Highlights of the Ceremony included the signing of the FMDQ CP Quotations Register, the presentation of the FMDQ CP Quotations Certificate to the issuer and the autographing of the FMDQ CP Quotations Yearbook, among others.
In his remark, Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ, congratulated UPDC PLC and highlighted that the quotation of this real sector CP, was evidence of the positive progression in the Nigerian CP market, serving to instill confidence in the possibilities of the Nigerian financial market. He stated that FMDQ, as the market organiser, desirous of building a sustainable CP market in the Nigerian financial market space, promotes credibility for quoted CPs, 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 CP Quotations Register and the presentation of the FMDQ CP Quotations Certificate, Mr. Ogunniran, in his address acknowledged that the CP issuance had afforded UPDC a better opportunity to successfully diversify its short-term funding sources at a 25% reduced cost, thereby enhancing their value-creating capability for UPDC’s various stakeholders.
Also speaking at the Ceremony, Mr. Akinkugbe noted, “the remarkable success of the UPDC Commercial Paper issuance is an affirmation of the growth of the CP market in recent years. We are indeed pleased to have partnered with UPDC in establishing its inaugural CP 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 CP benefitted from an active and vibrant marketing strategy aimed at achieving wide distribution.”.
In the same vein, Mr. Jimoh, commented that, “Coronation Merchant Bank is happy to be part of this landmark and novel transaction. We successfully offered our superior transaction structuring capabilities to UPDC by jointly providing a liquidity back-stop facility to enhance the Commercial Paper offering alongside the partial corporate guarantee provided by UACN, (UPDC’s parent company). These credit enhancements boosted the rating of the paper to A- (investment grade) rating assigned by Agusto and Co. demonstrating the bank’s strong ability to provide innovative financing solutions and also lend its robust securities distribution capabilities to its clients.”.
As a securities exchange committed, as one of its mandates, to powering the growth of the Nigerian housing sector through the debt capital market, FMDQ is continually innovating and engaging key stakeholders towards promoting an efficient, transparent and well-regulated market, which will attract and retain domestic and foreign investors.