Viathan Funding lists pioneer ‘power bond’ on FMDQ
by Iheanyi Nwachukwu
March 8, 2018 | 1:44 am| | | Start Conversation
Viathan Funding plc has tapped the Nigerian debt capital markets (DCM) for funding targeted. This follows the listing of the Viathan Funding plc ‘Series-1 N10 billion 16 percent 10-year’ Senior Guaranteed Fixed Rate Bond (the Power Bond) under its N50 billion Bond Issuance Programme on FMDQ OTC Securities Exchange.
This development inspires confidence in the Nigerian markets as infrastructure development, slowly, but progressively, takes form.
Viathan Group develops and operates off-grid power solutions in Nigeria. Sponsored for listing on FMDQ by Renaissance Capital (Nigeria) Limited, a Registration Member (Listings) of FMDQ, the Viathan 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.
In attendance to commemorate this listing were the chairman, House Committee on Capital Market and Institutions, Tajudeen Yusuf; the issuer, represented by Ladi Sanni, CEO, Viathan Funding Plc, alongside other Executives of Viathan Engineering Limited; the Guarantor of the Viathan Bond, InfraCredit, represented by its CEO, Chinua Azubike; the sponsor of the issue, represented by Temi Popoola, CEO, Renaissance Capital (Nigeria) Limited, also alongside other executives, and other parties to the listing.
Speaking during the listing ceremony Tumi Sekoni, vice president, Capital Markets Directorate at FMDQ, whilst welcoming the guests and market participants gathered to commemorate this commendable feat, congratulated the issuer and guest of honour, Viathan Funding PLC; expressing FMDQ’s pleasure at the pioneer listing of a power bond in Nigeria, a most exemplary and indeed, positive step towards improving infrastructure development in the nation.
She commented, “FMDQ, being especially desirous of unlocking capital for infrastructure and economic development in Nigeria, has again demonstrated its unflinching commitment in this regard by providing due diligence and availing its credible and efficient platform for the listing and trading of the Viathan Bond – the firstever Power Bond to be issued in the Nigerian markets. FMDQ is indeed honoured to be the chosen platform for the listing of this Power Bond.”
Addressing the markets during the listing ceremony, Ladi Sanni commented, “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 N10 billion bond is the first tranche in a N50billion bond program which would essentially help Viathan actualise its aggressive 200 megawatts capacity expansion programme 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.”
Representing the issuing house and sponsor of the bond on FMDQ, Temi Popoola added, “It has been a source of tremendous pride working with Viathan on this landmark transaction. Whilst it is the first of its kind in many regards, the most important benefit is perhaps the signalling effect it gives to corporates in Nigeria that other funding sources are available to them. Renaissance Capital, leveraging on its execution and distribution abilities, ended up with a deal that was over-subscribed and very well received by the local investor community.”
Tajudeen Yusuf, in his special remarks to the financial markets and related stakeholders reiterated the government’s commitment towards supporting initiatives towards developing the markets.
According to Bola Onadele. Koko, MD/CEO of FMDQ,, 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.
FMDQ therefore, recognises the untapped potential of the DCM and is actively championing initiatives to leverage on and realise these opportunities.
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