FMDQ OTC Securities Exchange on Tuesday achieved a feat with the listing of N10 billion Viathan Funding Plc Bond on its platform.
The News Agency of Nigeria reports that the bond was the country’s pioneer power bond to be listed.
Viathan Funding Plc is a special purpose vehicle established to raise debt capital with Renaissance Capital (Nigeria) as the Lead Issuing House and Lead Book runner for the transaction.
The bond is the first tranche of the company’s N50 billion Senior Guaranteed Fixed Rate bond from the Nigerian debt capital markets due by 2027 at 16 per cent.
The bond, the first corporate facility to be successfully accessed from the Nigerian debt market for infrastructure development, has 10 years tenure, extending the yield curve for corporate debt issuances.
Speaking at the bond listing in Lagos, Ladi Sanni, the Chief Executive Officer, Viathan Funding Plc, said that the bond was oversubscribed by 105 per cent.
Sanni said that Viathan Bonds was subscribed by 16 institutional investors, comprising at least 12 pension funds and two insurance companies.
He said that the subscription level indicated investors’ confidence in the company, noting that it would deliver on its promises to various stakeholders.
Sanni said that the net proceeds of the bonds would be utilised by Viathan Group to expand its electricity generation capacity.
He said: “It is with great pleasure that we celebrate the listing of the Viathan Bond.
“The success of the bond is evidence of the increasing appetite of local institutional investors for long term infrastructural debt instruments.
“The ₦10 billion bond is the first tranche in a ₦50 billion bond programme which would essentially help Viathan to actualise its aggressive 200 Megawatts capacity expansion programme by 2021.
“We are happy about the investors’ confidence and reception to the Viathan bond and look forward to their support in subsequent bond issues.”
According to him, the bond listing will increase the country’s investment portfolio and boost foreign direct investment.
He said that they would continue to demonstrate corporate governance in all its dealings to make the bond a success.
Hon.Yusuf Tajudeen, the Chairman, House of Representatives Committee on Capital Market and Institutions, said that the National Assembly would continue to support the growth of capital market.
Tajudeen said that the country would achieve the needed growth with a vibrant and enhanced capital market.
He commended FMDQ for its efforts in revolutionalising the debt market and provision of platform for companies and institutions to raise funds for growth and development.
Tajudeen said: “The National Assembly is concerned to move into the direction of the capital market. It’s the right way to go.
“You have broken the ice and the sky will be your starting point. We are with you.’’
Also, Bola Onadele, FMDQ Managing Director, described the event as a “special occasion for the company and in the history of the country’’.
Onadele said that the role FMDQ intends to play in the capital market ecosystem was to become an agent of change in the market and advocate for government.
Onadele said: “We strive to unlock capital in infrastructure spaces in power, housing, transportation because these are the commanding agents of change in the economy.’’