Skip to main content

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)









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

Comments

Post a Comment

Popular posts from this blog

CENTRAL BANK OF NIGERIA (CBN) Deputy Gov Disowns Fake e-mail Address.

Disclaimer CBN Deputy Gov Disowns Fake e-mail Address CBN Deputy Gov Disowns Fake e-mail Address The attention of the Central Bank of Nigeria (CBN) has been drawn to the activities of fraudsters impersonating some principal officers of the Bank in an attempt to defraud unsuspecting members of the public. Of particular concern to the Bank is the recent message sent from an e-mail purportedly belonging to the Deputy Governor, Corporate Services, Mr. Edward Lametek Adamu, transacting a phony business deal. We wish to inform all members of the public, particularly members of the social media community that officials of the CBN do not communicate with emails outside the @cbn.gov.ng domain. No principal officer of the Bank will transact business or ask you to transact business with any other platform outside those ending with @cbn.gov.ng. The CBN also wishes to warn the public that it will not be liable for any financial transaction which may have transpired between people and sca...
Post a Comment
Explore more »

Outreach event on the principles of disclosure discussion paper in Hong Kong

On 5 September 2017, the Hong Kong Institute of CPAs and the IASB will host a joint outreach event in Hong Kong on the IASB dis­cus­sion paper DP/2017/1 'Dis­clo­sure Ini­tia­tive — Prin­ci­ples of Dis­clo­sure'. The event will cover main elements of the  dis­cus­sion paper , including: “what con­sti­tutes effective com­mu­ni­ca­tion in the financial reports;” “what con­sti­tutes fair pre­sen­ta­tion of per­for­mance measures such as EBITDA;” “when, where and how financial in­for­ma­tion should be disclosed.” For more in­for­ma­tion, see the  press release  on the IASB’s website.
Post a Comment
Explore more »

New—and Important—Role for Professional Accountants in Assessing Human Rights Risk

  When law firms are hiring specialists focusing on human rights as advisors to business, business at large must take note. Over the last few months, at a range of events, I have heard first hand from such new professional legal associates of the importance of horizon scanning and the how the landscape is changing in regard to corporate responsibility. Human rights and business is an emerging area that is set to accelerate and, as no any business can rest assured without further investigation that their full supply chain is “clean”, assessing and addressing potential risk in this area is clearly also a role for the professional accountant . In recent years, the operating environment for business has changed irreversibly. Companies will be increasingly called to account to show what they have done to prevent disasters like the 2013 Rana Plaza garment factory collapse in Bangladesh that cost over a thousand lives. It is not only the clothing industry that is affected by human rig...
Post a Comment
Explore more »