An official of the Nigerian Stock Exchange (NSE) said on Tuesday that the listing of Transcorp Hotels’ N10 billion bond may take place on Jan. 18 barring unforeseen circumstances.
Mr Ade Bajomo, NSE Executive Director, Market Operations and Technology, told the News Agency of Nigeria (NAN) in Lagos that the listing was to spur activities at the exchange.
A NAN investigation, however, revealed that the N10 billion was the first tranche of N30 billion bond approved by the exchange for the company.
Bajomo said the bond was one of the efforts by the company to finance long-term projects, adding that the NSE was delighted with the listing.
Bajomo urged more corporate companies to float corporate bonds this year with the current economic challenges to finance long-term projects.
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According to him, companies require funding to pursue more capital projects and the capital market offers the best funding for long-term development projects.
NAN reports that Transcorp Hotels in November, 2015 announced a successful naira bond market transaction of N10 billion.
The proceeds of the issue, according to the company, will be used to finance the upgrade of the company’s Hotel, Transcorp Hilton, Abuja, and to build a multipurpose banquet centre.
The transaction was a 7-year fixed-rate bond due in 2022 under a N30 billion medium-term programme.
The subscription of the bond consisted of 7-year 16 per cent fixed rate (unsecured) bonds due in 2022.
The 7-year bond were fully underwritten by FSDH Merchant Bank Limited and United Capital Plc.
Source: Guardian Newspaper.
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