Parthian Partners Limited has announced the issuance of its debut N10 billion 3-year Fixed Rate Senior Unsecured Short-term Bond. The issuance represents the first short-term bond under the FMDQ Securities Exchange short-term bond framework and the first bond by an Inter-dealer broker in the Nigerian capital market.
The bond issuance also follows the successful redemption of
Parthian’s maiden N20 billion Commercial Paper Issuance in November/December
2021. The fully subscribed bond, issued at coupon rate of 13.50 per cent, has
attracted awide spectrum of institutional investors.
The issuance is further corroborated by Parthian Partners’
investment grade ratings, Bbb (stable outlook) and BBB+ (stable outlook) by
Agusto & Co and DataPro, respectively, which highlight the Company’s good
funding profile, improving profitability, asset quality, support from the
owners and strong capitalisation.
The Bonds, listed on the FMDQ Exchange, had Renaissance
Capital as Lead Issuing House and Credit Rating Adviser, with CardinalStone
Partners, Constant Capital and SCM Capital as Joint Issuing Houses, while
PricewaterhouseCoopers and KPMG are acting as Reporting Accountants and
Auditor, respectively. Funmi Roberts & Co. are Solicitors to the
Transaction.
Parthian in a statement said it intends to utilise the net
proceeds of the bond issuance to increase liquidity in the Nigerian debt market
by discounting Federal Government of Nigeria (FGN) promissory notes and
supporting the FGN bond market.
Partner’s Chief Financial Officer Olayinka Arewa, “Being
Nigeria’s pioneer interdealer broker comes with the arduous responsibility of
blazing the trail in providing liquidity in the fixed income market – one which
Parthian Partners has embraced, and for which we have constantly sought
innovative ways to maintain a high standard.
“We are the first IDB to issue a bond of this size and we
plan on facilitating infrastructure development across the country by investing
in FGN Promissory notes and the FGN Bond market. We recognise the efforts of
the investor community in ensuring the success of this bond issuance and commit
to upholding their confidence in us as we deliver on our strategic growth
objectives,” he said.
Also speaking on the transaction, Chief Executive of
Renaissance Capital, Nigeria, Samuel Sule stated, “Parthian Partners has once
again proved its leading position in the interdealer broker segment of our
domestic financial markets.
We are pleased to act as the Lead Issuing House on the first
bond issue from a pure-play interdealer broker in the domestic capital markets
and the first short-term bond under the FMDQ Securities Exchange framework.
“The transaction has broad support from the domestic
investor base highlighting the robust structure of the instrument, credit
positioning and positive ratings of the Company. Renaissance Capital remains
committed to African capital markets and we look forward to further solving our
clients’ needs and deepening our domestic capital markets.”
Parthian Partners Limited is Nigeria’s first interdealer
broker, licensed by the Securities and Exchange Commission (SEC) to provide
brokerage services to market dealers and investors, including pension fund
administrators, fund managers, banks, and international financial institutions.
Also a member of the FMDQ Exchange, the company primarily
facilitates trading in federal government, state government and corporate fixed
income securities.
From 2013 to date, Parthian Partners has facilitated over N5
trillion in FGN bonds and treasury bill trades, and over $1.2 billion in
Eurobond transactions.
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