FMDQ lists N7.96 billion Sterling Investment Management SPV PLC Bond

FMDQ OTC Securities Exchange has listed the Sterling Investment Management SPV PLC N7.965 billion short- medium term bond.

According to a statement from Sterling’s management, the bond which is in series 1, 7-Year at 16.50 percent Fixed Rate is part of a N65 billion Debt Issuance Programme.

Sponsor of the bond on FMDQ, Mr. Niyi Omojola, Partner at Constant Capital Partners Ltd., stated that the transaction was crafted in a unique, innovative investment structure which enabled the Sterling SPV Bond share in the same investment grade rating as Sterling Bank PLC, thereby, enlarging the range of potential investors in the bond.

“The innovative structure 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 stated.

Other highlights during the listing included the demonstration of FMDQ’s appreciation to the issuer and sponsor for their contributions to the development of the Nigerian debt capital market (DCM) in the form of the unveiling of the FMDQ Listing Scrolls, presentation of the FMDQ Listing Plaques, and the autographing of the FMDQ Bond Listing Wall of Fame.

Ms. Tumi Sekoni, Vice President & Divisional Head, Marketing & Business Development at FMDQ, whilst delivering the welcome address, congratulated the issuer for successfully raising N7.96 billion from the Nigerian DCM, notwithstanding the current economic climate.

She further highlighted that the listing would contribute to the growth of the Nigerian corporate bond market, invariably injecting renewed confidence into the DCM. Ms. Sekoni went on to assure all parties that the 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.