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Lifting economy with inter-dealer brokerage business

Parthian Partners Limited has marked 10 years of operations with formidable footprints in the financial services sector delivery to clients. The company, which set up the inter-dealer brokerage business in Nigeria at a time there was no regulatory framework recently  announced successful maturity and redemption of its debut Series 1 Commercial Paper under its N20 billion Issuance Programme. 

Parthian Partners Limited says the  wholesale brokerage industry has huge potential that should be effectively harnessed for financial sector growth and better returns to investors.

In this part of the world, not all businesses make it to their 10th anniversary. Survival rate for businesses is even lower  when the concerned firm handles people’s investments.

That explains the excitement that greeted Parthian Partners Limited 10th anniversary held in Lagos to celebrate its impact on the inter-dealer brokerage business in Nigeria and in supporting investments across several spectrum of the economy.

Clients, friends and well-wishers from all over world, joined the company, led by its Managing Director/CEO Oluseye Olusoga to commemorate 10 years of outstanding achievements.

During the event which was attended by prominent industry personalities, celebrities, staff and management of the organisation and other stakeholders, Olusoga said the company has greatly contributed to bridging the gap in both the wholesale and retail financial sector.

He said, “The wholesale brokerage industry is one with huge potentials though when we decided to set up the first ever inter-dealer brokerage business in Nigeria, there was no regulatory framework, the industry didn’t even exist. Now, there are so many other businesses in Nigeria who do what we do.”

“We are happy that we have pioneered a bourgeoning industry that improves liquidity, financial integration, transparency and efficiency in the African Over The Counter (OTC) and fixed income market.”  Olusoga also expressed his appreciation to everyone who contributed to the growth and success of the company.

 

Looking back at how the company came into existence, Inter-dealer brokerage – a financial system where an intermediary known as inter-dealer broker facilitates transactions between wholesale market participants – was established in Nigeria in 2012, and as the industry marked a decade of existence in Nigeria this year.

Highlights of the anniversary of the company was its maiden awards ceremony as members of staff who had excelled over the past year were rewarded in the midst of guests.

In attendance at the epic night of activities were captains of industry, political leaders, clients and friends of the investment company.

Some of the guests present were Chairman Fate Foundation, Fola Adeola, Chairman Lenox Group, Yemi Adeola; Managing Director/CEO, Central Securities Clearing System,  Ibrahim Jalo Waziri; Chairman Abraham Strategies; former Director General of the Debt Management Office (DMO), Dr Abraham Nwankwo; Tunde Kilaso; Engineer Adebayo Adeola, and Dr Olusola Labinjo

 

The Chairman of Parthian Group, Adedotun Sulaiman, while commenting on the early beginnings of the company and its achievements, said, “Today we are celebrating all those who have contributed to the success of Parthian and the industry in general. For us, success was achievable because we had a clear vision of what we wanted to achieve, and we were focused on making it work.”

“Parthian Partners became an inter-dealer broker in Nigeria at a time when the concept was alien to the region, so we had to build from scratch. It was no mean feat to introduce this vision and work with regulators and develop a framework for its regulation and operations. A vision which birthed not only a successful business but also a thriving sector.”

 

“As we celebrate Parthian’s 10th anniversary, it is an appropriate time for us, as pioneers of this great company, to reflect on our phenomenal achievements and to commit ourselves to build a legacy for the future generations.” Mr. Sulaiman further disclosed.

 

Parthian Partners Limited is Nigeria’s first inter-dealer broker, serving both buy-side and sell-side wholesale market participants and providing liquidity by showing prices on all on and off-the-run Federal Government of Nigeria , State and corporate bonds, Treasury Bills, Promissory notes, and Eurobonds.

With a long history of firsts, in 2021, Parthian Partners became the first Inter-Dealer Broker in Nigeria to successfully issue and redeem a N20 billion Commercial Paper on the FMDQ Exchange.

N20b Series 1 Commercial Paper Redeemed

Parthian Partners Limited, Nigeria’s foremost inter-dealer brokerage firm, has announced the successful maturity and redemption of its debut Series 1 Tranche A & B Commercial Paper under its N20 billion Issuance Programme.

The N15 billion Series 1 which was issued earlier this year on the FMDQ Exchange, matured on the 26th of November while the N5 billion Series 2 matures on the 30th of December 2021. The issuance represents the first by an Inter-dealer brokerage firm in the Nigerian capital market on the FMDQ Securities Exchange Limited (FMDQ) platform.

Parthian Partners Limited is rated Bbb (stable outlook) by Agusto & Co and the company’s Commercial Paper Programme is rated A1- by DataPro, evidencing the institution’s good funding profile, improving profitability and support from the owners, as well as good capitalisation.

The issuance was led by Coronation Merchant Bank, Renaissance Securities (Nigeria) Limited and Afrinvest West Africa Limited and was largely subscribed to by investors in the Banking, Asset Management, Pension Fund Administration, and Insurance sectors in Nigeria.

On the successful redemption,  Olusoga, stated, “On our inaugural issuance, institutional investors entrusted us as the premier inter-dealer broker in the domestic market. We are pleased to repay this trust and redeem our inaugural public issue at its maturity. We look to further entrench our market leading position and develop our relationship in the capital market as a responsible and dynamic issuer.”

Parthian Partners Limited is a member of the Parthian Group, duly licenced by the Securities and Exchange Commission (SEC) to operate as an inter-dealer broker in Nigeria.

The Issuer is one of the six FMDQ Securities Exchange Limited (FMDQ) registered inter-dealer brokers in Nigeria. Parthian Partners provides wholesale brokerage services for transactions among market dealers and investors, facilitating trading in municipal bonds, treasury bills, corporate bonds, Eurobonds and local contractor bonds. Parthian Partners remains committed to proving itself as a market leader in fixed-income, equities and structured finance both in Nigeria and across Africa.

‘Bbb’ Ratings Affirmed by Agusto & Co

Pan African credit rating firm, Agusto & Co Limited affirmed the “Bbb” rating assigned to Parthian Partners Limited (PPL) with a stable outlook for the year 2022/2023.

Agusto & Co, in its rating note, explained that the “Bbb” rating is indicative of Parthian Partners’ profitability and experienced management team, among other factors. “The rating reflects PPL’s good capitalization and profitability, its experienced management team and support from owners,” the rating company affirmed.

Speaking on the development, Olusoga remarked that the rating aligns with the business’ standing as an industry leader with robust earnings potential, and experienced management. “The affirmation of Parthian’s rating by Agusto & Co validates the strength of our business model and our capacity to continue to support our clients while playing our part in improving liquidity in the Nigerian markets,” he said.

Parthian Partners was also recently assigned a BBB+’ credit rating by DataPro Limited, just months after the firm successfully redeemed its debut N20 billion commercial paper quoted on the FMDQ Exchange.

New products development 

Africa’s first treasury bills investment app, I-invest generated about N2 billion worth of investments from its active users in less than six months it was launched . The Nigerian company, Parthian Partners, developed the investment app which does not only facilitate investment in treasury bills but also helps to foster a savings culture, has said that it has doubled its one year target in less than six months.

Olusoga said “We are happy that we were able to make this much of an impact. This helps us solidify our goal of playing our part in building Nigeria’s economy. The more people invest with the app, the bigger the money market becomes.  This he believes is a step in the right direction although It will take some time to make a more significant impact”.

 

The app essentially functions as a platform with a structure that allows investors to make payments into their virtual wallets either by direct transfers or with the use of a card from where investments can be made. It is important to mention that all the investments are held in safe custody by a licensed securities custodian which effectively protects all investments made by the investors on the app. The app is also under the purview of the Securities & Exchange Commission.

Segun Oluyomi, a user of the app made a comment about the app saying “At a time I was searching for an app I could use to save and I came across I-invest. I found out that you can invest with the app in treasury bills. It helps me save and also gives me interest on my savings. That’s where all my spare cash goes into now.”

“As most of us know, treasury bills are government guaranteed debt instruments issued by Central Bank of Nigeria (CBN) on their behalf to finance expenditure. The CBN also uses treasury bills to control the money supply and flow in the economy.

Treasury bills are low risks instruments which are backed by the full faith and credit of the Federal Government of Nigeria and offers high returns depending on the tenor when one invests with the app.

This is one of the main reasons why Nigerians are using the app, it not only offers risk-free investments but also boasts of competitive returns compare to your traditional savings account.

On collaboration with professional partners, the company said:  “It is of the utmost importance to us that our partners receive top-notch customer and technical support and work under clearly defined conditions that secure a solid business platform and opportunities for developing and extending the boundaries of cooperation”.

Parthian Partners also provides regular market updates, and liaises with market participants and regulators in African markets to provide independent research on the African fixed income market. It equally provides market participants with credible market data which reflect market conditions and sentiments.

Rebranding

PSL Capital Limited, an indigenous broker/dealer firm, completed a strategic rebranding effort as part of its accelerated company growth and renewal of its corporate vision. At the core of the rebrand is a change of the company name to Parthian Securities Limited, a member of the Parthian Group and a Trading License holder of the Nigerian Exchange.

The rebranding is part of the organisation’s strategy to evolve its business and create a platform for new opportunities. Despite the name change, the corporate philosophy remains the same as the company looks to invest in new and innovative ways to bring the financial markets closer to participants in the Nigerian Capital Market.
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