UBA Becomes First Indigenous Dual Listed Firm

A group of capital market operators have stated that the listing of the UBA Plc N30.50 billion bond on the Financial Market Dealers Quotations Over-the-Counter (FMDQ OTC) and the Nigerian Stock Exchange (NSE) would boost market liquidity.

FMDQ OTC is another trading platform on the nation’s capital market.

The capital market experts said on Thursday in Lagos, that the listing would aid in boosting foreign and local investors participation in the market.

In his remarks, the Group Managing Director of UBA, Mr. Phillips Oduoza, said the company was the first indigenous firm to undertake dual listing of corporate bond.

Oduoza said that listing on the platform would avail foreign investors the opportunity to invest in the bond due to appropriate pricing.

He said the bond had increased the bank’s level capitalisation level and would give the bank the capacity to increase more businesses and sustainability.

“It is the largest fixed income issuance we had in 2014 and we are the first Nigerian company to undertake dual listing of corporate bond,’’ he said.

Oduoza said the bank would continue to explore new frontiers to meet growth needs, adding that the bond would be utilised in creating long-term loans to the bank’s customers across Africa.

“We are set to tap funds readily available in the market. There will be a large move from corporates loan to fixed income because it will help them to plan their loan appropriately,’’ he said.

Speaking to newsmen, the Managing Director, Compass Investments and Securities Ltd, Mr. Emeka Madubuike, said that the listing would enhance liquidity at the nation’s bourse.

He said that the development would make the nation’s capital market a better investment destination due to transparent price discovery.

“We are expecting more trading platforms in this market where all kinds of products can be traded, ’Madubuike said.

It would be recalled that FMDQ OTC on April 8 commenced corporate bond listings on its platform with the listing of the bank’s N30.50 billion bond.

The listed Bond is Series-1 of UBA PLC 7-year 16.45 per cent Fixed Rate Subordinated Unsecured Notes due in 2021.

Bola Onadele, the Managing Director, FMDQ, at the board listing exercise said that the listing would deepen the nation’s capital market.

He said the admission of the bank’s bond followed the recent approval of FMDQ bond listing and quotation rules by the Securities and Exchange Commission (SEC).