FMDQ Clocks 4 Years in Operation as Dufil Prima Foods PLC Lists its ₦10.00bn Fixed Rate Bond on the OTC Exchange
For four (4) years, FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange) has progressively championed and effectively supported initiatives aimed at boosting the growth and development of the Nigerian financial markets, with a particular focus on the debt capital markets (DCM). Through the provision of unprecedented transparency, spearheading of initiatives to boost secondary market liquidity and facilitating effective price formation, among other activities via its platform, FMDQ has supported the enhancement of market credibility which has, in turn, boosted investor confidence in the Nigerian DCM.
Consequently, credible issuers in the private sector have been able to successfully tap the DCM to access stable long-term finance to fund key activities that ultimately translate to national economic development, some of which include, but are not limited to, funding pressing infrastructure development needs and supporting capital investments. The most recent of these issuers is Dufil Prima Foods PLC, which, following the approval granted by the FMDQ Board Listings, Markets and Technology Committee, listed the Dufil Prima Foods PLC ₦10.00bn Series 1 Fixed Rate Bond under its ₦40.00bn Bond Issuance Programme (the Dufil Prima Bond) on the OTC Exchange.
To mark this noteworthy achievement, FMDQ, in keeping with its tradition, held a prestigious Listing Ceremony at its offices on Tuesday, November 7, 2017, incidentally coinciding with the 4th year anniversary of the OTC Exchange. Present to celebrate the successful admittance of Dufil Prima Bond on FMDQ were key representatives from Dufil Prima Foods PLC, the issuer and guest of honour, Stanbic IBTC Capital Limited, the sponsor of the issue and Registration Member (Listings) of FMDQ, and representatives from FBN Merchant Bank Limited, Stanbic IBTC Trustees Limited, ARM Trustees Limited, G.Elias & Co., Udo Udoma & Belo-Osagie and Nnena Ejekam Associates.
Ms. Tumi Sekoni, Vice President & Divisional Head, Business Development of FMDQ, during the welcome address, congratulated the issuer and sponsor of the issue on the success achieved in the DCM and expressed the OTC Exchange’s gratitude for the issuer’s decision to list the bond on FMDQ, whilst recognising Dufil Prima Foods PLC as a household name considering the quotation of its Commercial Papers also on the OTC Exchange. She reiterated FMDQ’s commitment to also playing its part, like the issuer of the Dufil Prima Bond and other parties to the issue, in contributing towards the growth of the Nigerian corporate bond market.
Mr Madhukar Khetan, Chief Operating Officer, Dufil Prima Foods PLC, during the Issuer’s special address, stated, “We at Dufil Prima Foods PLC are very proud to have our inaugural issuance under the Bond Programme listed on FMDQ OTC Securities Exchange. This key milestone continues to outline Dufil’s commitment to entrenching the domestic capital market as an integral part of our corporate funding strategy, beyond the establishment and issuance of Notes under our Commercial Paper Programme. This initiative speaks to the very core of our beliefs in being relevant in our local markets and that can be closely correlated and identified with our products and services which are very well recognised on a national level.”
Speaking on behalf of the sponsor to the issue and FMDQ Registration Member (Listings), Mr. Kobby Bentsi-Enchill, Head, Debt Capital Markets, Stanbic IBTC Capital Limited, affirmed as follows, “We are pleased to have supported Dufil Prima Foods PLC on their debut bond issuance in the domestic capital market, a key initiative for meeting their long-term funding objectives. This issuance, which was 100% subscribed, highlights the confidence placed by the market in Dufil’s brand and it’s strategic intent. FMDQ has made significant strides with enhancing liquidity in the domestic capital market and the listing of the ₦10 billion Series I Bonds by Dufil further provides a competitive investment option for fund managers looking for sustainable returns over and above comparable treasury benchmarks. We are excited to continue a fruitful partnership with FMDQ and top household names such as Dufil.”
The Listing Ceremony was marked with memorable highlights which included, inter alia, the signing of the FMDQ Bond Listings Register; the presentation of the FMDQ Bonds Listing Certificate to the Issuer; the unveiling of the FMDQ Listing Scrolls; and the special autograph impressions by the Issuer.
Mr Bola Onadele. Koko, the Managing Director/CEO of FMDQ, during his closing address, commented, “the OTC Exchange shall continue to innovate and provide efficient services and infrastructure, as may be necessary, to support issuers and investors, towards achieving an operationally excellent and competitive DCM. Through consistent collaboration with its stakeholders, FMDQ shall continue to further deepen and effectively position the Nigerian DCM for growth, and invariably contribute to the growth of the economy at large.”
