Parthian Partners Limited has announced the issuance of its first N10 billion 3-year fixed rate senior unsecured short term bond. The issue represents the first short-term bond under the FMDQ Securities Exchange’s short-term bond framework and the first bond by an inter-dealer broker in the Nigerian capital market.
The bond issue also follows the successful redemption of Parthian’s first N20 billion commercial paper issue in November/December 2021. The fully subscribed bond, issued at a coupon rate of 13.50%, has attracted a wide range of institutional investors.
The issue is further supported by investment grade ratings of Parthian Partners, Bbb (stable outlook) and BBB+ (stable outlook) by Agusto & Co and DataPro, respectively, which highlight the good funding profile of the issue. Company, improved profitability, asset quality, owner support and strong capitalization.
The bonds, listed on the FMDQ stock exchange, had Renaissance Capital as lead issuer and credit rating advisor, with CardinalStone Partners, Constant Capital and SCM Capital as joint issuers, while PricewaterhouseCoopers and KPMG act as reporting accountants and auditors, respectively. Funmi Roberts & Co. are the attorneys for the transaction.
In a statement, Parthian said it intended to use the net proceeds from the bond issue to increase liquidity in the Nigerian debt market by discounting Federal Government of Nigeria (FGN) Promissory Notes ) and supporting the FGN bond market.
Partner’s Chief Financial Officer, Olayinka Arewa, “Being Nigeria’s pioneer middle broker comes with a heavy responsibility to lead the way in providing liquidity in the fixed income market – a market that Parthian Partners has embraced and for which we have constantly sought innovative ways to maintain a high standard.
“We are the first IDB to issue a bond of this size and we plan to facilitate infrastructure development across the country by investing in FGN promissory notes and the FGN bond market. We recognize the efforts of the investment community to ensure the success of this bond issue and are committed to maintaining their confidence in us as we achieve our strategic growth objectives,” he said.
Also speaking on the transaction, Managing Director of Renaissance Capital, Nigeria, Samuel Sule, said, “Parthian Partners has once again proven its leading position in the inter-dealer brokerage segment of our domestic capital markets. We are pleased to act as the lead issuing house on the first pure inter-dealer bond issue in the domestic capital markets and the first short-term bond under the FMDQ stock exchange. .
“The transaction enjoys broad support from the domestic investor base, underscoring the instrument’s robust structure, credit positioning and positive ratings of the company. Renaissance Capital remains committed to African capital markets and we are looking forward to further meeting the needs of our clients and deepening our domestic capital markets.
Parthian Partners Limited is Nigeria’s premier intermediary broker, licensed by the Securities and Exchange Commission (SEC) to provide brokerage services to market brokers and investors, including pension fund administrators, fund managers, banks and international financial institutions. Also a member of the FMDQ Exchange, the firm primarily facilitates the trading of federal, state and corporate fixed income securities. From 2013 to date, Parthian Partners has facilitated over N5 trillion Naira of FGN bonds and Treasury bill transactions, and over $1.2 billion of Eurobond transactions.