FMDQ OTC admits Sterling Investment’s ₦32.90 billion bond
FMDQ OTC Securities Exchange has admitted a ₦32.90 billion bond from Sterling Investment Management SPV Plc.
The FMDQ, in its monthly newsletter, said its Board Listings, Markets and Technology Committee granted the approval of Sterling Investment’s ₦32.90 billion Series 2 fixed rate unsecured bond under a ₦65 billion debt issuance programme on its platform at a rate of 16.25 per cent.
It said in streamlining the efficiency of its processes and delivering value to both corporate and commercial businesses desirous of accessing the debt capital markets, it had continued to avail its credible platform as well as tailor its listings, quotations and notings services to suit the needs of issuers.
It said, “By listing its bond on FMDQ, Sterling Investment Management SPV Plc enjoys exceptional benefits, which include but are not limited to enhanced investor confidence in the issuer, transparent/relevant information disclosure on the issue, effective price formation and global visibility.
“A formal listing ceremony is being planned to commemorate the listing of the Sterling Investment Management SPV Plc on FMDQ in honour of the issuer.”
According to the newsletter, on January 30, 2019, the 31st OTC Foreign Exchange Futures contract, NGUS JAN 30, 2019, with contract amount of $515.09m, matured and settled on the FMDQ.
The contract, which stopped trading on January 22, was valued for settlement against the Nigerian Autonomous Foreign Exchange Fixing.
The FMDQ said the associated clearing/settlement activities were effected accordingly.
It said, “The Central Bank of Nigeria, as observed over the last 30 maturities, introduced a new contract, NGUS JAN 29 2020 for $1.00bn at $/₦364.65, to replace the matured contract.
“The apex bank also refreshed its quotes on the existing one to 11-month contracts.”
The FMDQ added that the year 2018 showed a steady flow of transactions and activities in the naira-settled OTC FX Futures market.
It noted that the market, which was launched out of the desire to address the need for risk management in the Nigerian FX market, continued to be an effective hedging product for investors (local and international), businesses and government institutions alike.