Bond Listing

FMDQ OTC Securities Exchange provides an efficient platform for registration, listing, quotation and valuation of bonds.

FMDQ through its trading and surveillance systems and and the publication of FMDQ Daily Quotations List has empowered the Nigerian sovereign bonds and other classes of bonds with price discovery, transparency and market integrity.

Bonds listed and admitted on FMDQ are traded by its Dealing Members some of which act as primary dealers to the sovereign domestic bonds. FMDQ Dealing Members act as market makers to the Nigerian sovereign bonds and some other classes of bonds thereby providing trading liquidity to the Nigerian bond market. The OTC securities exchange is responsible for circa 100% of bonds traded in Nigeria.

As part of its mandate to provide exceptional levels of information transparency, FMDQ provides continuous disclosure of relevant information on fixed income issues listed on its platform. This information includes amongst others – issue size, tenor, issue and maturity date, coupon, yield, issuer ratings, shelf prospectus, pricing supplement and issuer issue history.

The following bonds can be listed and traded on FMDQ:

·         Federal Government of Nigeria (FGN) Bonds – These are long-term debt securities issued by the Federal Government of Nigeria through the Debt Management Office (DMO), used to support government spending. Government bonds are generally regarded as the safest bond investments since they are backed by the government of a nation (in the case of FGN bonds, the Federal Government of Nigeria) and therefore have the highest credit rating in the respective government’s nation

·         Agency Bonds – These are bonds issued by a government-sponsored agency, backed by the government of the country. Such agencies are usually set up to allow access to low cost of financing for certain areas in the economy e.g. housing, power, transport etc.

·         Sub-national Bonds – These are long-term debt securities issued by the state and local governments of a nation to finance projects for the public good like building schools, roads, hospitals, sewer systems etc.

·         Corporate Bonds – These are long-term debt securities issued by corporations in order to raise finance for a variety of reasons, from building facilities and purchasing equipment to expanding their businesses. Corporate bonds are usually characterised by higher yields than government bonds because there is a higher risk of a company defaulting than a government. They, however, can also be the most rewarding fixed-income investments because of the risk the investors must take on. A corporation’s credit quality is very important as the higher the quality, the lower the interest rate the investors receive

·         Supranational Bonds – Supranational entities are formed by two or more central governments with the purpose of promoting economic development for the member nations. Supranational bonds are debt instruments issued by these institutions to finance their activities. Similar to government bonds, supranational bonds are regarded as very safe and have high credit ratings. Examples of Supranationals include the International Finance Corporation (IFC), the African Development Bank (AfDB), the World Bank Group and the United Nations

·         Eurobonds – These are bonds issued in currencies other than the domestic currencies of the issuing entities. Eurobonds are attractive financing tools as they give issuers the flexibility to choose the countries in which to offer their bonds determined by the countries’ regulatory constraints. Eurobonds are primarily admitted to the Official Lists of the Luxembourg Stock Exchange or the United Kingdom Listing Authority (for trading on the Regulated Market of the London Stock Exchange)

View Listing & Quotation Rules

View Bond Listings

Click here for Application Forms

Reference: https://www.fmdqotc.com/listings-and-quotations/bond-listing/