FMDQ Exchange admits Union Bank’s commercial papers

FMDQ Securities Exchange Limited announced on Wednesday that it had approved the quotation of the Union Bank of Nigeria Plc N2.58 billion Series 8 and N32.38 billion Series 9 Commercial Papers under its N100.00 billion Commercial Paper Issuance Programme on the Exchange’s platform.

The Exchange said the proceeds from the quotation of the issuances would be used to support Union Bank’s short-term funding requirements, adding that this validated the Exchange’s mandate to provide a reliable platform to support the capital raising needs of the stakeholders.

The issuances were co-sponsored by Renaissance Securities (Nigeria) Limited – lead sponsor; Standard Chartered Capital & Advisory Nigeria Limited; and UCML Capital Limited, according to a statement.

The Chief Executive Officer, Union Bank, Emeka Okonkwo, said, “The series 8 and 9 commercial paper issuance under our N100.00 billion Domestic Debt Issuance programme is another strategic milestone in our bid to establish Union Bank as a leading financial institution in Nigeria.

“The net proceeds from the issuance will further diversify our sources of capital as we continue to accelerate business growth and drive our long-term strategy. Since the registration of the debt issuance programme in 2018, we have continued to see active participation from the market, demonstrating continued investor confidence in Union Bank and its growth trajectory.”

The acting CEO and Director Financing, Renaissance Securities (Nigeria), Samuel Sule, said, “Renaissance Capital is pleased to have partnered with Union Bank on successfully accessing the domestic commercial paper markets once again. Union Bank is an established and sophisticated issuer and has proven its ability to navigate our everchanging rate and liquidity environments on numerous occasions.

“The solid participation by institutional investors on this oversubscribed dual series issuance underscores the sustained confidence in Union Bank’s medium-term strategy and highlights the bank’s attractive credit story.”

The Exchange said the admissions were reflective of the potential of the Nigerian debt capital market and the commendable level of confidence demonstrated by both issuers and investors in the market.

It said, “They also validate the efficient processes and integrated systems through which FMDQ Holdings PLC and its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, and FMDQ Depository Limited – has sustained its integrated service delivery to the market and its diverse stakeholders.

“In keeping with its commitment to the development of the DCM, FMDQ Exchange shall continue to provide, in collaboration with market stakeholders, innovative and efficient services aimed at deepening and effectively positioning the Nigerian DCM for growth, in support of the realisation of a globally competitive financial market and vibrant economy.”