Stanbic IBTC Lists N15.44b Bond On FMDQ | Independent Newspapers Limited
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Business, Money Market

Stanbic IBTC Lists N15.44b Bond On FMDQ

Posted: Jun 10, 2015 at 12:25 am   /   by   /   comments (0)

Stanbic IBTC on Monday became the second bank that will list on the FMDQ OTC securities exchange when it listed N15.44 billion bond. This is coming after the pioneer listing of the N30.5 billon United Bank for Africa bond earlier in the year.

The bond, which has 10 year tenor, is a tier2 capital and the proceeds will be used to enhance the bank’s capital base.

Managing Director of Stanbic IBTC, Yinka Sanni, said the listing on FMDQ exchange is significant to the bank because it gives the bank the privilege of joining reputable growing exchange.

His words: “It is a privilege to be on this exchange. The price set for the bond is market determined because buyer and seller meet at FMDQ. With this listing, we find ourselves privileged to be in the league of other reputable companies already listed in FMDQ. We hope the market develop and provide instruments that people can trade on”.

Speaking on the reason for the bond, Sanni said the bank is only raising what it needs for now and that when there is the need to raise more, it will be approaching the market then.

“No bank raises all the money it needs forever at once; otherwise return on investment will be dampened. So, we are raising sufficient funds that we need for our immediate growth and the good thing is that it is a market that is liquid and investors can access it.

“The funds that we have raised will be enough for our needs in the medium time. We expect to deliver decent returns to our investors. It is the type that they will be happy that they invest with us. We are happy that these days, more and more people are interested in doing business with our bank. This is a good impetus to must to deliver”, Sanni stated.

He further highlighted that the bonds are listed on FMDQ as the exchange provides a dedicated over-the- counter platform, which serves to enhance the liquidity of bonds and other securities traded on it. He concluded, by noting that growth in secondary market liquidity will contribute immensely to the growth in the overall domestic bond market, therefore FMDQ’s value proposition for the transformation of our markets, will help deepen secondary market liquidity and transparency, thus further aligning our market with international best practices.

According to the MD/CEO of FMDQ, Mr. Bola Onadele Koko, FMDQ is a debt-focused in the financial market through its efficient platform for the registration, listing, quotation and valuation of bonds.