By Nkiruka Nnorom
FMDQ OTC Securities Exchange, yesterday, admitted for listing the Forte Oil Plc’s N9 billion bonds on its platform.
The bond, which is the Series 1 under the company’s N50 billion bond issuance programme with 17.50 per cent fixed rate, was listed concurrently on the Nigerian Stock Exchange, NSE. The bond with five year tenure represents the first corporate bonds listing on the FMDQ this year.
In her welcome address at the listing, Ms. Tumi Sekoni, Vice President & Divisional Head, Marketing & Business Development, FMDQ, applauded the issuer for successfully raising N9 billion from the domestic market, and for joining the league of other top companies whose debt profiles have been raised via the value packed listings and quotations service offered by FMDQ. According to her, being listed on FMDQ will avail the Forte Oil Plc bond unprecedented market transparency, unrivaled information disclosure, efficient price formation and improved global visibility, among other benefits, through FMDQ’s systems and website.
Also speaking, Mr. Akin Akinfemiwa, CEO, Forte Oil Plc, stated: “The listing of our N9 billion Series 1, five-year 17.50 per cent Fixed Rate Bond maturing in 2021 on FMDQ OTC Securities Exchange is another remarkable milestone for Forte Oil Plc and it demonstrates the immense potential of the Nigerian bond market as a source of alternative funding for Nigerian corporates.
“It also reaffirms our commitment to transparent and timely corporate disclosures and liquidity of our issued corporate instruments, be it equity or debt. In addition, we strongly believe this listing will provide opportunity for price discovery for our investors.”
In her remarks, Mrs. Toyin Sanni, Managing Director/CEO, United Capital Plc, said, “We are delighted to have played a leading role in the successful execution of the Forte Oil N9 billion Series 1 Bond issue.” She reiterated the company’s commitment in making significant contributions to the success of its clients, saying: “This successful issuance represents one of the ways in which we support leading businesses through our expertise in capital raising.”
Speaking during the listing at the NSE, Haruna Jalo-Waziri, Executive Director, Capital Market Division, NSE stated: “We are pleased to be a partner to Forte Oil in its quest to expand its franchise by raising fresh capital through bonds. As the pioneer Exchange, we will continue to provide our issuers with bespoke financing options that will place them in vantage position to compete regionally and globally”.
The proceeds of the N9 billion bonds would be deployed to refinance existing short term commercial bank loan obligations and to expand downstream retail outlet footprints amongst others.