In the rush to raise corporate bonds, 18 companies have issued N225.38 billion corporate bonds in eight years in 23 deals.
According to documents accessed from the Debt Management Office (DMO) by The Nation, UBA Plc issued the largest bond value in two installments of N20 billion in 2010 and N35 billion in 2011. Both bond insurances had 13 and 14 per cent coupon values with seven years’ maturity date.
Flour Mills of Nigeria Plc issued the single largest corporate bond worth N37.5 billion. The bond, which was issued in 2010, had a coupon value of 12 per cent with five years tenure thus putting its year of maturity at 2015.
The Federal Mortgage Bank of Nigeria (FMBN) did not want the private sector to overrun the corporate bonds market, so in 2012 it issued a N30.56 billion bond with a 17.25 coupon and five years’ maturity tenor.
Others in the elite 23 corporate bonds issuers between 2005 and 2013 were Acess bank (N1.9 billion), Crusader Nigeria Plc (N4 billion), Custodian and Allied Insurance Plc (N1.17 billion), C and I Leasing Plc (N2.24 billion and N0.94 billion), Guaranty Trust Bank Plc (N13.17 billion), NGC Sterile (N2 billion), UACN Property Development Company Plc (N15 billion).
Chellarams Plc issued (N1.5 billion and N0.54 billion) corporate bonds in 2010 and 2012; Dana Group (N8.01 billion), Sterling Bank (N7.5 billion), Lafarge/WAPCO Nigeria Plc (N11.88 billion), Nigeria Aviation Handling Company Plc (N15 billion and N2.05 billion), Tower Funding (N4.63 billion), Crusader Insurance (N2.26 billion, zero coupon), First Securities Discount House (N5.53 billion) and La Casera (N3 billion).
On the other hand, six banks issued Corporate Eurobonds in the International Capital Market (ICM) valued at $3.4 billion between January 2011 and this month.
Some of the banks are Guaranty Trust Bank ($500 million and $400 million), Access Bank ($350 million and $400 million), Fidelity Bank ($300 million), Zenith Bank ($500 million), Diamond Bank ($200 million) and First Bank ($450 million and $300 million).