FMDQ Exchange admits Union Bank’s N34.96bn Series 8, 9 CP

FMDQ Securities Exchange Limited has processed and approved the Quotation of the Union Bank of Nigeria Plc N2.58 billion Series 8 and N32.38 billion Series 9 Commercial Papers (CPs) under its N100.00 billion Commercial Paper Issuance Programme on the Exchange platform.

These admissions on FMDQ Exchange are yet again reflective of the potential of the Nigerian debt capital market (DCM) and the commendable level of confidence demonstrated by both issuers and investors in the market.

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.

The proceeds from the quotation of these issuances, which were co-sponsored by FMDQ Exchange Registration Member (Quotations) – Renaissance Securities (Nigeria) Limited – lead sponsor; Standard Chartered Capital & Advisory Nigeria Limited; and UCML Capital Limited – will be used to support Union Bank’s short-term funding requirements, thus validating the Exchange’s mandate to provide a reliable platform to support the capital raising needs of the stakeholders.

The Chief Executive Officer of Union Bank, Emeka Okonkwo, commented that “the series 8 and 9 commercial paper issuance under our N100 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”.

Commenting on the issue, the Ag. Chief Executive Officer and Director Financing, Renaissance Securities (Nigeria) Limited, Samuel Sule, expressed that “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”.