The FBNQuest Merchant Bank Limited 7.344 billion Commercial Paper (CP) has been accepted for a quotation on the FMDQ Securities Exchange Limited platform.
The Series 19 CP, which is part of the bank’s $100 billion CP Program, is anticipated to help the issuer meet its short-term liquidity needs.
The early admission of this CP offering and other securities on FMDQ’s platform reflects the potential of the Nigerian debt capital market, as well as the impressive level of confidence shown by both issuers and investors.
The CP will benefit from worldwide visibility, ongoing information disclosure to defend investors’ interests, and credible price formation, among other things, according to FMDQ.
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“FMDQ is committed to carrying out its duty of assisting enterprises, corporations, and government organizations in attaining their funding goals while safeguarding the prosperity of the Nigerian financial markets and economy,” it added.
Oluseun Olatidoye, Head Capital Markets, FBNQuest, said many companies do not take advantage of Nigeria’s developing CP and bond market to get secure funds that match their capital needs, speaking at the latest edition of the Leading Conversation with FBNQuest Webinar series.
“Even if interest rates have risen in the first quarter of this year, there is still a lot of room for many companies to get cheaper and more consistent finance from investors looking for well-run businesses with predictable cash flows,” he said.