FMDQ OTC Securities Exchange Admits N17.7bn NB Plc Commercial Paper

The FMDQ OTC Securities Exchange (FMDQ) on Thursday recorded another milestone as it quoted the Nigerian Breweries Plc (NB Plc) N17.709 billion Series 1 Commercial Paper (CP) Notes under the brewery’s N100 billion CP Issuance Programme.

The Nigerian Breweries Plc CP was the first to be quoted on the FMDQ platform by a non-bank.

Speaking at the quotation ceremony, Managing Director/Chief Executive Officer of FMDQ OTC , Mr. Bola Onadele. Koko, noted that as a securities exchange, FMDQ promotes credibility for quoted CPs, through a highly efficient registration process.

According to him, CPs quoted on the OTC securities exchange gain access to the full complement of an FMDQ quotations service; which includes but not limited to the global visibility through its inclusion to the FMDQ Bloomberg E-Bond trading system and on the quotations page of the FMDQ website, as well as improved transparency drive.

Finance Director of Nigerian Breweries, Mr. Mark Rutten said that the company is excited about the future of the planned CP issuance activity on FMDQ and the ever-growing benefits this would bring to the capital market.

Speaking about the transaction, Head, Debt Capital Market, Stanbic IBTC Capital Limited, one of the joint issuing houses, Mr. Kobby Bensti-Enchill, said: “Increasing the number of CP issuances is the first step towards creating liquidity in secondary market trading of CPs. The second, and equally important step, is the quotation of the securities on FMDQ OTC Securities Exchange. We are exceptionally pleased to have worked with Nigerian Breweries Plc in setting up its maiden CP programme and successfully raising N17.7billion in the first series. We are also pleased to sponsor the quotation of the CP on the FMDQ OTC Securities Exchange.”

Speaking in the same vein, Managing Director of FBN Capital Limited, Mr. Kayode Akinkugbe said: “The decision by Nigerian Breweries to complement its short term funding via issuance in the money and capital markets is certainly laudable, and in so doing the company has demonstrated leadership as a pacesetter in the domestic debt capital markets.

He noted that the success of the transaction speaks to the high confidence the investing public has in the Nigerian Breweries Plc brand and recognition of the Issuer’s remarkable track record in the beverage industry.

“In addition, it is a reflection of the joint lead issuing houses distribution capability and depth in the fixed income market. We expect that the quotation of the Nigerian Breweries CP on FMDQ will provide investors with transparency, efficient price determination and improved liquidity,” Akinkugbe added.