FMDQ sees positive outlook for Nigerian debt capital markets in 2018

The FMDQ OTC Securities Exchange (FMDQ) has forecast a positive outlook for the Nigerian debt market, saying that its achievement in the past year despite recessionary trends and other economic headwinds, calls for hope in the development of the financial markets in the country.

In an assessment of its activities in 2017 and outlook for 2018, FMDQ said it’s role in the Nigerian financial markets landscape, which includes unlocking capital for infrastructural development in support of the Nigerian Economic Recovery and Growth Plan, financial markets diplomacy with both local and international stakeholders and increased economic development advocacy with key regulator, would be strengthened in 2018.

“FMDQ remains very optimistic about the possibilities of the Nigerian markets and looks ahead to 2018 with much eagerness and expectation,” it said, adding that the OTC Exchange recognises the potential of fully-functional DCM and financial markets at large, and will remain steadfast in innovating and providing efficient services and infrastructure, as may be necessary, to support issuers, investors, government and their agencies and other corporate businesses at large, towards achieving an economy that would support sustainable development and directly impact the citizenry.

It noted that it admitted seven bonds and thirty-three commercial papers (CPs) with total market value of N1.750 trillion last year. Of the amount, seven bonds were valued at N1,598.35 billion while, quotations of the thirty-three CPs were worth N152.35 billion.
By their admission to the FMDQ platform, the securities thus gained access to the full complement of the unsurpassed FMDQ Listings and Quotations service, which include, but is not limited to, improved secondary market liquidity, efficient listings/quotations process, unprecedented transparency and information disclosure, global visibility and improved network effects.

It said in 2017, every month was marked by a significant activity, ranging from the launching and implementation of key activities and initiatives, to the making of history in the Nigerian financial markets.

Some of the notable achievements during the year included but were not limited to: quotation of the ₦35.00 billion Access Bank PLC commercial paper notes; partnership with S&P Dow Jones Indices; listing of the federal government of Nigeria Eurobond.
The $1.00 billion Notes (Eurobond) under the FRN’s $1.00 billion global medium-term note programme was listed on FMDQ and a prestigious and one-of-a-kind ceremony was held in honour of the FRN to mark the remarkable achievement., FMDQ said.

“This most significant feat was achieved following a series of strategic engagements that spanned over three (3) years between the DMO and FMDQ, as well as some other key stakeholders, on the importance of listing the sovereign’s Eurobonds locally.

“This listing underscored the importance of developing the local markets, in line with the drive to make them globally competitive, as effective avenues for bridging the long-term financing gaps towards economic development,” it added.

Listing of the Pioneer Exchange Traded Fund on FMDQ: FMDQ, also in March, welcomed the pioneer listing of an exchange traded fund (ETF) on its platform – The Vetiva S&P Nigerian Sovereign Bond Exchange Traded Fund.

It said the listing of this ETF on FMDQ platform, validates the OTC Exchange’s goal of bringing the Nigerian fixed income market operations under a single governance structure.

There was also the launch of the Nigerian Autonomous Foreign Exchange Fixing (NAFEX), of which it noted that despite some challenging conditions faced in the markets during some periods in the year, they proved to be encouraging in terms of market development, and has, no doubt, set the pace for a significantly positive outlook for 2018, FMDQ, added.