FMDQ set to admit listing of FG $1bn eurobonds



In consolidation of the strategic and value-adding initiatives spearheaded by FMDQ OTC Securities Exchange in developing the Nigerian financial markets, the OTC Exchange, is set to admit the pioneer listing of the $1 billion Federal Government Eurobond to its platform.

The Federal Government, on Feb. 9, 2017, announced the pricing of its offering of $1 billion Notes (Eurobond) under its $1 billion Global Medium-Term Note Programme.

Following a series of engagements by FMDQ on the importance of promoting and supporting economic development in the country through the opening of Eurobonds to the domestic DCM via the OTC Exchange’s platform, this welcome and laudable development, which market participants believe will set the pace for global competitiveness and invariably deepen the Nigerian financial markets, in no small measure, lays credence to the underlying objectives for the birth and operational mandate of FMDQ.

The issuance of the $1billion federal government Eurobond is aimed at fostering economic development and will serve to rejuvenate the vibrancy of the nation’s foreign exchange market.

Remarkably so, this is the first-time the sovereign’s Eurobond will be considered for listing on a domestic exchange, following the nation’s first and second outings to the international capital markets in 2011 and 2013 respectively.

This most commendable consideration follows the decision of the Debt Management Office (DMO), Nigeria, (the authority under which the federal government issues Bonds and Treasury Bills) and the Ministry of Finance to list the Eurobond on an efficient domestic securities exchange such as FMDQ to deepen and support the development of the local debt capital market.

In streamlining its processes and ensuring an efficient time to market for debt securities, FMDQ, being Nigeria’s foremost debt capital-focused OTC securities exchange has continued to provide a highly resourceful platform for the registration, listing of Bonds (Sovereign, Agency, Sub-national, Corporate, Supranational, as well as Eurobonds and Sukuk), Funds and the quotation of Commercial Papers, Treasury Bills and other short-term securities as may arise from time to time, to meet the needs of the market participants.

Whilst currently providing improved transparency, effective price formation and enhanced secondary market liquidity through its Dealing Members, who are responsible for circa 99 per cent of the secondary market trading activity in federal government Bonds and Nigerian Treasury Bills on FMDQ, the OTC Exchange, in admitting the $1 billion Eurobond for listing and trading, will continue to lend its itself as a worthy and operationally excellent platform, serving as the point of integration between the domestic and international markets.

The OTC Exchange, since its debut into the Nigerian financial market landscape, already granted permitted trading status for $1.50billion of the previously issued federal government Eurobonds and $3.15billion of Eurobonds issued by Nigerian companies.