Central Securities Clearing System (CSCS) has said it is well-positioned to clear and settle all secondary market transactions on debit notes, going forward, notwithstanding the Exchange where it is traded.
The assurance is coming ahead of the debut of Dangote Cement N100 billion bonds issue in the debt capital market.
“With CSCS having full coverage of the market, it is well-positioned to clear and settle all secondary market transactions on the debit notes, going forward, notwithstanding the Exchange, where it is traded. With over N530 billion outstanding corporate debt issues and slightly less than N400 billion outstanding sub-national bonds, the Nigerian debt capital market is increasingly becoming a viable source of long-term funding for both corporates and state governments,” said Mr Haruna Jalo-Waziri, Managing Director/CEO, CSCS.
“With this debut N100 billion debt note, Dangote Cement Plc is once again reinforcing the capacity of the Nigerian debt capital market and setting a new benchmark in terms of size and pricing of corporate bonds.
“ CSCS, being the depository to about half a trillion-naira outstanding corporate bonds from twenty-three issuers, we are excited to onboard Dangote Cement bonds into our depository post the Securities and Exchange Commission ( SEC) approval of allotments.
We are excited at working with all stakeholders – the issuer, joint lead arrangers, Exchanges and more importantly esteemed investors – Pension Fund Administrators (PFAs), banks, asset managers, trustees, custodians and brokerage firms, who would be participating in this landmark transaction.
“We earnestly look forward to the approved allotment schedule to promptly credit investors’ accounts and provide a consolidated view of all their investments across the capital market.”
“Dangote Cement Series 1 bond is a landmark transaction for the Nigerian debt capital market, as it will be the largest-ever single corporate debt issue in the Nigerian capital market.
“Similar to the Dangote Cement N150 billion Commercial Paper (CP), which has helped deepen that segment of the money market and broaden local investors’ investment options in the fixed income market, the Series 1 bond, which is the debut issue out of the N300 billion Shelf Programme, will further reinforce the potential depth of the Nigerian debt capital market and the ability of local corporates to fund long term projects from the domestic debt market,” Jalo-Waziri added.