By Munachimso Obienyi
Leading largest securities exchange in Nigeria, FMDQ Securities Exchange Limited has through its Board Listings and Markets Committee, approved the registration of the Julius Berger Nigeria PLC N30.00 billion CP Programme on its platform.
This feat demonstrates FMDQ Exchange’s positioning as the preferred platform for debt securities, and further reinforces the Exchange’s commitment to enhancing access to capital for infrastructure development for the good of the Nigerian economy at large, though its credible and transparent platform.
The CP Programme, which is sponsored by Stanbic IBTC Capital Limited (Lead Sponsor) and FCMB Capital Markets Limited – both Registered Member (Quotations) of FMDQ Exchange, will avail the issuer, the opportunity to raise short-term finance from the Nigerian debt markets through CP issuances within the Programme limit.
Speaking on the successful CP Programme registration, the Managing Director, Julius Berger, Dr. Lars Richter, expressed joy at the completion of the CP program while adding that this will enhance Julius Berger’s long-term strategy to boost financial flexibility and strengthen its competitive advantage in the construction sector.
“Issuance of commercial papers will support the company’s short-term capital and funding requirements, enabling the company diversify funding sources and unlock more value for stakeholders”, Ritcher said.
Equally speaking on the significance of the successful issuance, the lead sponsor of the CP Programme and a Registered Member (Quotations) of the Exchange, Stanbic IBTC Capital Limited, represented by its Chief Executive, Mr. Funso Akere, said “Stanbic IBTC Capital Limited is pleased to have advised Julius Berger on the establishment of its inaugural N30.00 billion CP Issuance Programme, which will enable it access competitively priced short-term funding from institutional investors. Julius Berger plans to issue CPs on various tenures under the Programme in order to optimise its funding costs and diversify its funding sources.”
Also, the co-sponsor of the CP Programme, FCMB Capital Markets Limited, through the Head, Debt Solutions, Mr. Ikechukwu Omeruah, stated “FCMB Capital Markets Limited is pleased to have acted as co-sponsor to the registration of Julius Berger’s debut CP Programme on FMDQ Exchange. Julius Berger is a household name in the Nigerian lexicon, playing a prominent role in the development of the country’s infrastructure.
The establishment of the CP Programme provides a platform for the Company to diversify sources of debt funding to include non-bank investors, thereby increasing resources available for strategic planning while also reducing average cost of borrowing.”
