By Goddy Egene
FMDQ Securities Exchange Limited recently approved the quotation of the Valency Agro Nigeria Limited N5.12 billion Series 1 Commercial Paper(CP) on its platform.
The N5.12 billion is under the Valency Agro Nigeria Limited N20.00 billion CP Programme and came at a time where the Nigerian economy is be deviled with soaring food prices, amidst compounding challenges of insecurity.
The agricultural sector and its attendant transformation agenda have never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.
According to the company, the proceeds from this issue of the CP will be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.
Commenting on the issuance, the Executive Director, Valency Agro Nigeria Limited, Mr. Sumit Jain, said: “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria. We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry.”
Also commenting, Head, Capital Markets, FBNQuest Merchant Bank Limited, Mr. Oluseun Olatidoye, said: “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12 billion Series 1 CP issued by Valency Agro Nigeria Limited.
“This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets. We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success”.
According to FMDQ, the timely admission of this CP, and in general, securities on the exchange, is a testament to the efficient processes and integrated systems through which FMDQ Holdings Plc through its wholly owned subsidiaries, has continued to create unique value for its diverse stakeholders during this peculiar time and beyond.
“In keeping with its commitment to the development of the market, FMDQ Exchange shall sustain its efforts in supporting issuers with tailored financing options to enable them achieve their strategic objectives, deepen and effectively position the Nigerian debt capital market (DCM) for growth, in support of the realisation of a globally competitive and vibrant economy,” the exchange said.