It has been declared by Parthian Partners Limited that its first N10 billion bond was successfully issued.
The first short-term bond issued under the FMDQ Securities Exchange’s short-term bond framework and the first bond issued by an inter-dealer broker on the Nigerian capital market are three-year fixed rate senior unsecured instruments.
The bond sale comes after Parthian’s first $20 billion commercial paper issuance was successfully redeemed in November or December 2021.
According to a business statement, a wide range of institutional investors have shown exciting interest in the fully subscribed bond, which was offered at a coupon rate of 13.5%.
Investment grade ratings assigned to Parthian Partners by Agusto & Co. and DataPro, respectively, are Bbb (stable outlook) and BBB+ (stable outlook), which support the issuance’s success. These highlight the company’s solid capitalization, rising profitability, outstanding asset quality, and support from the owners.
CardinalStone Partners, Constant Capital, and SCM Capital are joint issuing houses for the bond, which is listed on the FMDQ Exchange, and Renaissance Capital is serving as the Lead Issuing House and Credit Rating Adviser. PwC and KPMG are serving as the bond’s reporting accountants and auditors, respectively. The transaction’s solicitors are Funmi Roberts & Co.
By discounting the promissory notes issued by the Federal Government of Nigeria (FGN) and assisting the FGN bond market, Parthian plans to use the net proceeds of the bond issuance to boost liquidity in the Nigerian debt market.
Olayinka Arewa, the company’s CFO, said: “Parthian Partners have accepted the challenging task of blazing the road in providing liquidity in the fixed income market, and for which we have continuously found new ways to maintain high quality. We are the first IDB to issue a bond of this scale, and through investing in FGN Promissory Notes and the FGN Bond market, we intend to promote infrastructure development throughout the nation. We commit to upholding the investor community’s confidence in us as we fulfill our strategic growth objectives. We acknowledge their efforts in ensuring the success of this bond issuance.