The FMDQ OTC Securities Exchange yesterday admitted the UACN Property Development Company (UPDC) N16.799 billion commercial paper (CP) on its platform.
This followed the successfully meeting of the FMDQ OTC listing requirements by UPDC.
This CP represents series 1 under the UPDC’s N24 billion CP Issuance Programme.
In his remark, Managing Director/CEO, FMDQ, Mr. Bola Onadele.Koko, congratulated UPDC Plc, saying that the quotation of this real sector CP, was evidence of the positive progression in the Nigerian CP market, serving to instill confidence in the possibilities of the Nigerian financial market. He stated that FMDQ, as the market organiser, desirous of building a sustainable CP market in the Nigerian financial market space, promotes credibility for quoted CPs, through a highly efficient registration process and the provision of invaluable information, instituting financial market infrastructures, in line with global standards, to drive, among others, transparency, governance, market oversight, integrity and market liquidity with a view to protecting stakeholder interests.
In his address MD, UPDC, Mr. Hakeem Ogunniran, acknowledged that the CP issuance had afforded the company a better opportunity to successfully diversify its short-term funding sources at a 25 per cent reduced cost, thereby enhancing their value-creating capability for UPDC’s various stakeholders.
Also speaking, Mr. Kayode Akinkugbe of FBN Capital Limited, noted, “the remarkable success of the UPDC CP issuance is an affirmation of the growth of the CP market in recent years. We are indeed pleased to have partnered with UPDC in establishing its inaugural CP Programme and achieving the significant oversubscription recorded at its debut launch. The success of the deal was influenced by the innovative credit enhancement features developed by FBN Capital Limited and Coronation Merchant Bank Limited.
Speaking in the same vein, Mr. Abubakar Jimoh of Coronation Merchant Bank said the bank is happy to be part of this landmark and novel transaction.
“We successfully offered our superior transaction structuring capabilities to UPDC by jointly providing a liquidity back-stop facility to enhance the CP offering alongside the partial corporate guarantee provided by UACN, (UPDC’s parent company),” he said.
