Nigeria’s over-the-counter market, FMDQ OTC Securities Exchange (“FMDQ” or “the OTC Exchange”) is set to admit the pioneer listing of the $1.00bn Federal Government of Nigeria (FGN) Eurobond to its platform.
This move is in furtherance to the consolidation of the strategic and value-adding initiatives spearheaded by FMDQ OTC Securities Exchange in developing the Nigerian financial markets.
The FGN, on Feb. 9, 2017, announced the pricing of its offering of $1.00bn Notes (Eurobond) under its $1.00bn 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 development lays credence to the underlying objectives for the birth and operational mandate of FMDQ.
The issuance of the $1.00bn FGN Eurobond is aimed at fostering economic development and will serve to rejuvenate the vibrancy of the nation’s FX market.
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 FGN 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 DCM.
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.
The OTC Exchange, since its debut into the Nigerian financial market landscape, already granted permitted trading status for $1.50bn of the previously issued FGN Eurobonds and $3.15bn of Eurobonds issued by Nigerian companies.
