Firms Raised N715.33bn CPs on FMDQ Exchange in 11 Months

Kayode Tokede

In a bid to expand business operations, firms operating in Nigeria raised a whopping sum of N715.33billion Commercial Papers (CPs) in 11 months of 2022, according to the FMDQ Exchange November report.

The report also disclosed that firms raised N578.48billion Corporate Bonds in 11 months under review.

According to FMDQ Exchange, the total value of corporate bonds listed in November 2022 was N199.31billion across three issuers and representing a 297.95per cent or N149.23billion Month-on-Month (MoM) increase from the value of corporate bonds listed in October 2022.

As a result, the total outstanding value for corporate bonds increased MoM by 16.29per cent or N197.53billion to N1,409.89billion.

The total value of CPs quoted on FMDQ Exchange in November 2022 was N72.53billoon, representing a MoM increase of 9.06 per cent or N6.03billion from the value of CPs quoted in October 2022.

“In November 2022, CPs with a total value of N79.37billion matured and were redeemed resulting in a MoM decrease of CPs outstanding by 1.65 per cent or N6.84billion to N407.71billion.”

The report stated that total spot market turnover for all products traded in the secondary market was N12.54trillion in November 2022, representing a MoM increase of 8.69per cent or N1.00trillion from October 2022 figures.

“The MoM increase in total spot market turnover was majorly driven by an increase in Fixed Income (FI) and FX turnover which increased MoM by 8.84per cent or N0.45trillion and 31.25per cent or N0.89trillion respectively thereby offsetting the MoM marginal decrease in MM turnover in November 2022.

“The slump in MM turnover was solely driven by the MoM decrease in Repos/Buy-backs. Conversely, the increase in Fixed Income turnover was mutually driven by an uptrend in T.Bills and FGN Bonds turnover which offset the MoM decrease in CBN Bills and Other Bonds turnover respectively in the review period,” the report added.