FMDQ Admits N7.96bn Sterling Investment Management SPV Plc Bond
By Goddy Egene
The Sterling Investment Management SPV Plc N7.965 billion Series 1, 7-Year 16.50 per cent Fixed Rate Unsecured Bond, under the Sterling Bank Plc N65.00 billion Debt Issuance Programme, has been listed on the FMDQ OTC Securities Exchange.
Speaking at the listing ceremony in Lagos yesterday, Vice President & Divisional Head, Marketing & Business Development at FMDQ, Ms. Tumi Sekoni, congratulated the issuer for successfully raising N7.96 billion from the Nigerian debt capital market (DCM), notwithstanding the current economic climate.
She noted that the listing would contribute to the growth of the Nigerian corporate bond market, invariably injecting renewed confidence into the DCM. According to her, FMDQ Listings & Quotations Service was continually refined and tailored to provide, among others, a unique opportunity for issuers to raise the profiles of their issues and access a deep pool of capital, thereby meeting their long-term funding needs even as investor confidence is promoted through the availed transparency, information disclosure, price formation and visibility.
In his comments, Executive Director, Finance and Strategy, Sterling Bank Plc, Mr. Abubakar Suleiman said the last time the bank accessed the bond market was in 2011. He expressed his elation at the confidence placed in the institution by investors who participated in the offer despite the current volatility in the Nigerian financial market.
He acknowledged FMDQ’s contribution to the growth of the Nigerian DCM by facilitating active secondary market trading, and opined that the Bank was offering greater value to its esteemed investors by listing on FMDQ to enhance the liquidity of the bonds.
Following the presentation to the sponsor of the bond on FMDQ,
According to the Partner at Constant Capital Partners Limited, the lead issuing house in the transaction, Mr. Niyi Omojola stated that the company crafted a unique, innovative investment structure which enabled the Sterling SPV Bond share in the same investment grade rating as Sterling Bank Plc, enlarging the range of potential investors in the bond.
The innovative structure, he explained, protects investors by providing Federal Government of Nigeria bonds-backed credit enhancement while investing in the Tier II Note of Sterling Bank Plc.
“This innovation has allowed investors benefit from an enhanced rating, while providing Tier II capital to Sterling Bank Plc,” Omojola said.
He added that Stanbic IBTC, Vetiva Capital Management and SCM Capital acted as joint issuing houses to the issue.