FMDQ Securities Exchange Limited has resumed 2021 with the quotation of N37 billion Total Nigeria Plc, Valency Agro Nigeria Limited and Mixta Real Estate Plc Commercial Papers (CP) on its platform.
The Exchange, in a release at the weekend said, following the due diligence process, it has approved the quotation of the Total Nigeria N2.25 billion Series one and N12.75 billion Series two CP under its N30 billion CP Issuance Programme and the Mixta Real Estate N2 billion Series 32 CP under its N20 billion CP Issuance Programme, as well as the registration of the Valency Agro Nigeria Limited N20 billion CP Programme, on its platform.
It stated further that “The debut issuance of Total Nigeria’s CP, following a volatile period for the oil and gas industry as disrupted by the COVID-19 pandemic demonstrated innovation and confidence in the Nigerian debt capital market (DCM). This was aimed at supporting the vibrancy of the sector and in turn the reactivation of the Nigerian economy.”
FMDQ said the issue attracted significant demand from a wide range of investors, resulting in a subscription level of over four times the initial issue size, a demonstration of investor confidence in the company.
Speaking on the quotation of the issue, the managing director of Total Nigeria, Mr Imrane Barry, explained that; “the programme was set up to enable the company further broaden its sources of capital by accessing funding from the Nigerian debt capital markets, while also reducing its overall funding costs.”
Also, head of Debt Capital Markets, Stanbic IBTC Capital, Tokunbo Aturamu said that Total Nigeria had joined the growing list of blue-chip corporate who have embraced CP issuances in the Nigerian debt capital markets as a means of funding their working capital requirements.
In his remarks, the managing director, Valency International Pte Limited, Mr Sunil Dhanuka, said “We are glad for the successful registration of Valency Agro’s, N20 billion CP Issuance Programme.”
He commended FMDQ for the seamless process in spite of the COVID-19 pandemic and the various restrictions, saying that “In line with our vision to grow within the agricultural value chain in Nigeria, Valency Agro is committed to ensuring the growth of the agriculture sector through our deep involvement in Cashew, Sesame, Cocoa and other produce.
“Proceeds from this CP Programme will be used toward meeting the midterm working capital requirements of the various agricultural produce and on value addition prior to export.”