FMDQ Registers Julius Berger’s N30bn CP

FMDQ Securities Exchange Limited has approved the registration of the Julius Berger Nigeria Plc’s N30 billion Commercial Paper (CP) programme on the Exchange.

This feat, according to FMDQ, demonstrates its positioning as the preferred platform for debt securities, and further reinforces the Exchange’s commitment to enhancing access to capital for infrastructure development in Nigeria.

The CP programme, sponsored by Stanbic IBTC Capital Limited (lead sponsor) and FCMB Capital Markets Limited, will avail the issuer the opportunity to raise short-term finance from the Nigerian debt markets through CP issuances within the programme limit.

Commenting, Dr. Lars Richter, Managing Director, Julius Berger, said: “The establishment of the CP programme will enhance Julius Berger’s long-term strategy to boost financial flexibility and strengthen its competitive advantage in the construction sector. Issuance of commercial papers will support the company’s short-term capital and funding requirements, enabling the company to diversify funding sources and unlock more value for stakeholders.”

Speaking also Mr. Funso Akere, Chief Executive, Stanbic IBTC Capital Limited, said, “Stanbic IBTC Capital Limited is pleased to have advised Julius Berger on the establishment of its inaugural N30 billion CP issuance programme, which will enable it access competitively priced short-term funding from institutional investors”. Mr. Ikechukwu Omeruah, Head, Debt Solutions, FCMB Capital Markets Limited, co-sponsor of the CP programme, stated: “The establishment of the CP programme provides a platform for the company to diversify sources of debt funding to include non-bank investors, thereby increasing resources available for strategic planning while also reducing average cost of borrowing.”