Dipo Olowookere
By Dipo Olowookere
The management of the Nigerian Stock Exchange (NSE) has said it did not list the Lagos State Government’s N4.85 Billion, 15.75% Series 1, Tranche B, Environmental Note (Municipality Note) on its trading platform.
It was reported that the N4.85 billion bond issued under a N50 billion Medium Term Note Programme by Municipality Waste Management Contractors Limited, a privately owned company promoted by Visionscape Sanitations Solutions Limited, was not paid to subscribers on the due date of March 5, 2019.
Worried that the issue may dampen investors’ confidence in the Nigerian capital market, the NSE released a statement emphasising that the debt instrument was never listed on its platform.
“We wish to inform the investing public and our stakeholders that the Municipality Note was not listed on the Nigerian Stock Exchange.
“As part of its regulatory oversight to safeguard investors in the Nigerian capital market, the exchange takes steps to satisfy itself that the financial and other advisers have done due diligence on all financial instruments listed on the exchange in order to ensure that the obligations attached to those instruments are met as and when due.
“As part of the requirements for the issuance and the listing of similar debt instruments, the exchange requires that a guarantee on the revenue of the state government is issued, in addition to an approval of the State House of Assembly to back the notes.
“The established requirements are necessary to ensure that the risk of default on such instruments when listed on the exchange is reduced to the barest minimum.
“Please be assured of the exchange’s commitment to maintaining a fair, efficient and transparent market that guarantees the protection of investors’ rights,” the statement said.
