The Nigerian Debt Capital Markets (DCM) Workshop

Transcription

1 The Nigerian Debt Capital Markets (DCM) Wrkshp Twards a Brighter Future 27 Octber 2015

2 Overview f sessin bjectives 1 Objectives Exchange ideas n strategies fr the grwth f the debt capital market; particularly nn-svereign bnds Discuss the prspects f the Nigeria Debt Capital Markets, articulating respnsibilities fr regulatrs and players Ascertain rle f the debt capital markets in view f current ecnmic challenges Drive practical slutins with ideal prject management structure t drive implementatin

3 Sessin activities IFC's Perspective n DCM Issuances in Frntier Markets - Dr. Frederic Wandey Refrming The Nigerian Nn- Svereign Debt Markets 2 Mdel Market Experience Suth Africa Crprate Gvernance - Mr. Andrew Jhnstn 2 Gd Crprate Gvernance and Ratings 3 Explring Opprtunities fr the Nigerian Mrtgage Industry in the DCM - Mr. Snnie Ayere 3 Regulatry Refrms t Create an Enabling Envirnment fr Mrtgage Finance Presentatins Panel Discussins

4 Pillars fr Nigeria Debt Capital Market Transfrmatin Ideas & Recmmendatins 3 Transfrm Overall Ecnmic Structure t Achieve Lw Interest Rate Harmnise & Cnslidate Debt Capital Market Regulatry Plicies & Principles Strengthen Market Infrastructure & Prcesses t Reduce Overall Time t Market Enhance Market Liquidity Champin Prduct/ Instrument Innvatin Enhance DCM Research & Crprate Credit Rating Drive Gd Crprate Gvernance and Disclsures Imprve Cllabratin acrss the DCM Ecsystem Create an Enabling Envirnment fr Mrtgage Finance Drive Investrs & Issuers Educatin/ Enlightenment

5 Key Agreements/Takeaways 4 Transfrm Overall Ecnmic Structure t Achieve Lw Interest Rate Given the current macrecnmic challenges, certain refrms must be instituted t spur the grwth f the capital market There is need t address the interest rate structure f Nigeria ecnmy t achieve capital market grwth Harmnise & Cnslidate Debt Capital Market Regulatry Plicies & Principles Hamrnise regulatry framewrks/ plicies acrss multiple regulatrs t achieve a cnslidated regulatry principles fr the capital markets Reduce transactin cst f bnd issuance t attract issuers t the market Strengthen Market Infrastructure & Prcesses t Increase verall Time t Market Imprve verall timeliness f bnd issuance There is need t shrten the verall time t market fr bnd issuance SEC has taken steps t streamline the bnd issuance prcess and has created separate rules fr equity and fixed incme

6 Key Agreements/Takeaways 5 Enhance Market Liquidity Set up an independent institutin t rediscunt crprate bnds/ r create rediscunt windw e.g. reference t India experience Expand membership f FMDQ and FMDA t increase the level f participatin f dealers Organise fcus grup fr investrs t understand liquidity expectatins Champin Prduct/ Instrument Innvatin Intrduce securitizatin and bundling f instruments int the markets t drive market listings f SMEs Leverage privately placed bnds fr SMEs and small caps Develp bnd-linked instruments t drive retail investrs acquisitin

7 Key Agreements/Takeaways 6 Drive Gd Crprate Gvernance and Disclsures Transparency and gvernance are key factrs fr stimulating investr cnfidence in the Debt Market Key imperatives fr market players in prmting gd crprate gvernance include: Develpment f initiatives fr issuers t address crprate gvernance; thus increasing investr cnfidence Incrpratin f crprate gvernance measures int verall rating criteria Active participatin f institutinal investrs in crprate gvernance affairs f investees Encurage issuers t effectively disclse requirements fr issuance Regulatrs participatin shuld invlve: Driving implementatin f dcumented rules fr crprate gvernance Intrductin f practive risk-based appraches twards crprate gvernance as ppsed t the cnventinal cmpliance based apprach inline with leading jurisdictins

8 Key Agreements/Takeaways 7 Enhance DCM Research & Crprate Credit Rating Practively rate cmpanies t build cnfidence f investrs in the markets Enabling Envirnment fr Mrtgage Finance Mrtgage market in Nigeria is nt active due t the fllwing issues n the demand and supply side: Affrdability: nly an estimated 50,000 Nigerians patrnise mrtgage Land Availability: lack f access t gd titled land, where title is nt guaranteed T tackle the current challenges, innvative prducts have been rlled ut: CRI Mrtgage t address affrdability Duratin Insurance t address challenges fr land titles FMDQ shuld create structures t enable an enabling envirnment fr mrtgage finance

9 Key Agreements/Takeaways 8 Drive Investrs & Issuers Educatin/ Enlightenment Imprve Cllabratin acrss the DCM Ecsystem

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