Total Nigeria, Mixta, Valency, list new CPs on FMDQ platform to enhance financial markets development

By Charles Abuede

• Demonstrates confidence in debt markets

FMDQ Securities Exchange, Nigeria’s over-the-counter (OTC) exchange market, has approved the N15 billion quotation of the commercial paper issuance by Total Nigeria Plc and N2 billion by Mixta Real Estate Plc and also approved the registration of a N20 billion commercial paper programme by Valency Agro Nigeria Limited.

Mixta Real Estate issued its N2 billion Series 32 Commercial Paper under its N20 billion CP issuance programme, while Total Nigeria under its N30 billion Commercial Paper issuance programme, issued N2.25 billion Series 1 and N12.75 billion Series 2 Commercial Papers (CP).

The quotations are being seen as one to renewed hopes for the continued development of the financial markets as corporates have already begun with plans towards the achievement of their strategic goals and objectives.

According to FMDQ in a statement concerning the issuance, said: “The debut issuance of Total Nigeria’s CP, following a volatile period for the oil and gas industry as disrupted by the pandemic, demonstrated confidence in the debt capital market to support the vibrancy of this sector and, in turn, reactivate the economy. The CP market, even during the ‘high-points’ of the COVID-19 pandemic last year, has continued to provide succour to both private and public institutions as we begin the New Year.”

The OTC exchange market also stated that it has, through innovative evolution, remained unrelenting in availing its credible and efficient platform as well as tailoring its listings and quotations services to suit the needs of issuers and its registration members, while further noting that the issuance by Total Nigeria attracted significant demand from many investors.

Speaking on the CP issuance in Lagos, Imrane Barry, Total Nigeria, explained that the CP programme was positioned to make possible the company’s effort to further broaden its sources of capital by accessing funding from the debt capital markets. Barry also thanked investors for standing behind the company’s debut issue and commended the financial advisers for guaranteeing the success of the issue despite the challenging environment.

Also, Sunil Dhanuka, managing director, Valency International Ltd said: “The successful registration of Valency Agro’s N20 billion Commercial Paper issuance programme was in line with the vision to grow within the agricultural value chain in Nigeria. Valency Agro is committed to ensure the growth of the agriculture sector through deep involvement in cashew, sesame, cocoa and other produce.”

Dhanuka, also outlined that net proceeds from the CP programme would be used towards meeting the midterm working capital requirements of the various agricultural produce and on value addition prior to export.

“With double-digit inflation rates and soaring food prices compounded by the growing Nigerian population, it has become more imperative to catalyse the country’s agricultural value chain transformation in a bid to drive increased and sustainable production of agricultural products as well as foreign earnings through exports,” he stated.

Meanwhile, Tokunbo Aturamu, head, debt capital markets at Stanbic IBTC Capital, expressed his gladness that Total Nigeria has joined the growing list of blue-chip firms who have held close CP issuances in the Nigerian debt capital markets as a means of funding their working capital requirements.