SEC FMDQ Depository has been appointed a joint depository to the Dangote Cement ¦ 100.00 billion bond. This comes shortly after it’s ap...
FMDQ Depository has been appointed a joint depository to the Dangote Cement ¦ 100.00 billion bond.
This comes shortly after it’s appointment as a sole depository to the Lagos State Government’s ¦ 100.00 billion bond.
The N100 billion debut bond is Series 1 of the company’s N300 billion Shelf Programme.
The book-building process for the 5-year fixed rate senior unsecured bonds, which commenced on Friday, April 3, 2020, closed on Tuesday April 14, 2020, with the settlement date being Friday, 17 April, 2020.
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The Securities and Exchange Commission (SEC), had in an unprecedented and forward-thinking market development posture in June 2019, registered FMDQ Depository Limited in the Nigerian capital market after the existence of a sole depository for over 26 years, thereby empowering issuers and investors with freedom of choice, value and enhanced service delivery.
Following its operationalisation in August 2019 and leveraging on active stakeholder engagements across the Nigerian capital market value chain, FMDQ Depository commenced delivering on its operational mandate to implement value-added products and service offerings with FMDQ Group providing efficient listing and trading services through FMDQ Securities Exchange Limited and the much-required risk management, clearing and settlement services through FMDQ.
The Exchange said in a statement that the foresight of Lagos State Government in choosing FMDQ Depository for its most recent bond is an indication of the state’s alignment with progressive market development in Nigeria.
“Indeed, Dangote Cement Plc should also be commended as it has made history by giving investors power, for the first time in the Nigerian capital market, to determine which depository to lodge their assets with, thereby validating the SEC’s vision of diversification and healthy competition for the market,” FMDQ said in the statement.
“As FMDQ Depository is not saddled with the administrative task of allocating the International Securities Identification Numbers (ISINs) and Legal Entity Identifiers (LEIs), the Depository will remain focused on building its core competencies, including efficient and value-added service delivery to market stakeholders, which is the crux of the depository service.
“To ensure operational efficiency and facilitate ease of implementing investor’s choice of depository, FMDQ Depository had been advocating, right from its inception, for the SEC-registered central
securities depositories (CSDs) in Nigeria to embrace operational collaboration towards promoting the global agenda for interoperability between their systems, thereby effectively empowering investors
to deal on their Exchange of choice in Nigeria, irrespective of which depository their assets are held,” it added.
According to Mr. Bola Onadele.Koko, Chief Executive Officer, FMDQ Group, “We are excited as we embark on another phase of implementing FMDQ’s GOLD Agenda with the overarching objective of making the Nigerian financial market globally competitive, operationally excellent, liquid and diverse.
“FMDQ Depository completes the value chain of pertinent market infrastructure for the pre-trade, trade and post-trade spectrums provided by FMDQ Group – from listing to trading, clearing, settlement, asset servicing and data & information, amongst other services. “With the support and collaboration of its stakeholders, FMDQ’s much sought after goal of delivering power of choice to the hands of the investors has been actualised and FMDQ Group remains committed to fostering prosperity to all its stakeholders, especially the issuers and investors, through FMDQ’s capital market value chain services.”
Other issuers currently benefiting from the complementary depository services provided by FMDQ Depository include, Citibank Nigeria Limited, Eterna Plc, First City Monument Bank Plc for
their commercial Paper (CP) issuances among others.
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