A listing that would unlock capital for rapid infrastructure development in Nigeria has been unveiled with the entry of Series 1, ₦10 billion 16.00% 10-year Senior Guaranteed Fixed Rate Bond of Viathan Funding Plc on FMDQ OTC Securities Exchange platform.
The bond will be first corporate infrastructure bond focused on addressing power generation challenges, amongst others, to be issued in Nigeria and listed on the OTC Exchange.
The first tranche of the company’s N50 billion Senior Guaranteed Fixed Rate bond from the Nigerian debt capital markets due by 2027 would essentially help Viathan actualise its aggressive 200MegaWatts capacity expansion program by 2021.
Speaking at the ceremony in Lagos, the Chairman House committee on capital market and institutions, Yusuf Ayo Tajudeen said the listing would open up opportunities in the bond market.
He reiterated government’s commitment towards supporting initiatives that will aid the development of the markets.
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.
“The National Assembly is concerned to move into the direction of the capital market. It is the right way to go. You have broken the ice and the sky will be your starting point. We are with you,” Tajudeen said.
The Chief Executive Officer of Viathan funding Plc, Ladi Sanni said the bond listing would increase the country’s investment portfolio and boost foreign direct investment.
According to him, the success of the bond is evident in the increasing appetite of local institutional investors for long-term infrastructural debt instruments.
He added that the company would continue to demonstrate high level of corporate governance in all its dealings to ensure the success of the bond.
“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 ₦10.00bn bond is the first tranche in a ₦50.00 billion-bond program, which would essentially help Viathan actualise its aggressive 200MegaWatts capacity expansion program 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.”
The Managing Director of FMDQ, Bola Onadele noted that infrastructure poses a major challenge to the realisation of the potential of the Nigerian economy; one which has not only stagnated economic development, but inhibited improvement in the standard of living of the Nigerian people.
The Guardian Newspaper March 15th, 2018