As the stock market continues to decline, Transcorp becomes becomes the first entity to list its bond on both the Nigeria Stock Exchange (NSE) and FMDQ OTC Securities Exchange Plc.
The company successfully listed N10billion corporate bond in both markets.
Investors are reported to have lost N331 billion in market capitalisation to close at N7.7 trillion. The All Share Index (ASI) fell 4.1 per cent to settle at 22,550.83 points from 23,514.04 points it opened the market on Monday.
While reacting to questions from newsmen, Managing Director/Chief Executive Officer, Transcorp Plc, Mr. Valentine Ozigbo comments, “We are delighted by the investor reception for Transcorp Hotels in the bond market as it was oversubscribed by 30 per cent.”
According to him “ This transaction represents part of our financing of the upgrade of the Transcorp Hilton Abuja and the development of a 5,000-seater multipurpose Banquet centre. The availability of funds enables us to enhance our financial flexibility by diversifying our sources of funding while significantly extending the maturity of the Group’s funding and ensuring optimal capital mix. We are delighted by the investor reception for Transcorp Hotels in the bond markets.”
The Chief Executive Officer, NSE , Mr. Oscar Onyema also comments.
In his statement, he said the listing is the first this year and would spur activities at the exchange, revealing that the N10 billion was the first tranche of N30 billion bond approved by the stock exchange.