Following approval by the Board Listings and Markets Committee, FMDQ Securities Exchange Limited admitted the Infinity Microfinance Bank Limited ₦5 billion commercial paper (CP) programme on its platform on August 24.
The successful registration of this CP Programme is yet another notable stride in FMDQ Exchange’s drive to develop a vibrant and efficient debt market despite economic and market uncertainties.
The Nigerian CP market continues to provide issuers renewed opportunity to grow their businesses and restore the much-needed confidence of investors, whilst contributing to the overall growth of the Nigerian economy.
Infinity Microfinance Bank Limited (the Issuer) is a financial establishment that focuses on small and medium-sized business enterprises and provides services such as the mobilisation of small savings and the provision of small business loans.
This CP Programme, which is sponsored by FSDH Capital limited – a Registration Member (Quotations) of the Exchange – will avail the Issuer the opportunity to raise short-term finance from the Nigerian CP market.
Speaking, the Managing Director, Infinity Microfinance Bank, Oludotun Adewunmi, said: “Infinity Microfinance Bank Limited is pleased to announce the quotation of its ₦5 billion Commercial Paper Issuance Programme on FMDQ Securities Exchange Limited.
“The CP Programme is an important strategic move for the Bank towards achieving its mandate of supporting the growth of low-income households as well as micro, small & medium-sized enterprises across Lagos State.
“The registration of this CP Programme, in addition to allowing Infinity Microfinance Bank to broaden its sources of funding, has availed the Bank with a platform to raise short-term finance, within the CP Programme limit, from the Nigerian debt markets when it deems suitable.”
This is the first CP Programme to be registered by a microfinance bank on the FMDQ Securities Exchange Limited and without a doubt sets the pace for other duly licensed and regulated micro lending institutions seeking to raise capital via the issuance of commercial papers.
Commenting on the successful registration of the Programme, Managing Director, FSDH Capital Limited, Tolu Osinibi, said: “FSDH Capital is pleased to have advised Infinity Microfinance Bank Limited on this landmark registration of its ₦5 billion commercial paper issuance programme.
“This is the first CP Programme to be registered by a microfinance bank on the FMDQ Securities Exchange Limited and without a doubt sets the pace for other duly licensed and regulated micro lending institutions seeking to raise capital via the issuance of commercial papers.
“The admission on the FMDQ Exchange platform will deliver maximum market visibility and enhanced liquidity of CPs issued under the CP Programme. We are thankful to the Board and management of Infinity Microfinance Bank Limited for trusting FSDH Capital to execute this landmark transaction and provide the expert guidance required to navigate the challenges faced by first-time issuers in the markets.”
As part of its mandate to organise and govern markets within its purview and align the Nigerian debt markets with international best practices and standards, FMDQ Exchange said it will continue to promote credibility for securities admitted on its platform.
This will be done through its highly efficient registration, listing and quotation service, instituting requisite world-class standards to drive transparency, governance, market oversight and liquidity to power growth in the Nigerian financial markets.
