FMDQ Securities Exchange Limited has approved the registration of the Julius Berger Nigeria Plc’s N30billion commercial paper (CP) programme on the Exchange.
The Exchange said, this feat demonstrates its positioning as the preferred platform for debt securities, and further reinforces the Exchange’s commitment to enhancing access to capital for infrastructure development for the good of the Nigerian economy at large, though its credible and transparent platform.
The CP programme, which is sponsored by Stanbic IBTC Capital Limited and FCMB Capital Markets Limited, will avail the Julius Berger, the opportunity to raise short-term finance from the Nigerian debt markets through CP issuances within the programme limit.
The managing director, Julius Berger, Dr. Lars Richter, said Julius Berger is pleased to have completed the establishment of its N30 billion CP Issuance Programme on FMDQ Exchange, saying, the establishment of the CP Programme will enhance Julius Berger’s long-term strategy to boost financial flexibility and strengthen its competitive advantage in the construction sector.
He noted that, issuance of commercial papers will support the company’s short-term capital and funding requirements, enabling the company diversify funding sources and unlock more value for stakeholders.
Also, the chief executive of Stanbic IBTC Capital Limited, Mr. Funso Akere, said, “Stanbic IBTC Capital Limited is pleased to have advised Julius Berger on the establishment of its inaugural N30.00 billion CP Issuance Programme, which will enable it access competitively priced short-term funding from institutional investors. Julius Berger plans to issue CPs on various tenors under the Programme in order to optimise its funding costs and diversify its funding sources.”
Similarly, the head, Debt Solutions, FCMB Capital Markets Limited, Mr. Ikechukwu Omeruah, stated that, “FCMB Capital Markets Limited is pleased to have acted as co-sponsor to the registration of Julius Berger’s debut CP Programme on FMDQ Exchange. Julius Berger is a household name in the Nigerian lexicon, playing a prominent role in the development of the country’s infrastructure.
“The establishment of the CP Programme provides a platform for the company to diversify sources of debt funding to include non-bank investors, thereby increasing resources available for strategic planning while also reducing average cost of borrowing.”
