Lagos Commodities Exchange to list Nigeria’s maiden exchange traded notes – Lagos Commodities and Futures Exchange (LCFE) is set to list Nigeria’s first Exchange Traded Notes (ETNs) in a major boost for the national agricultural development plan.
Voriancorelli (VC) – a commodities aggregating company, plans to float a N20 billion ETNs on the LCFE, blazing the trail as the first company screened for listing on Exchange.
VC, which has strong background in digitisation of commodities assets such as paddy rice, sorghum, soyabeans and maize, has secured approval for listing on the LCFE. Leading investment banking group, GTI Capital Limited introduced VC to LCFE.
Chairman, Voriancorelli (VC), Mr Bolaji Akinboro explained that listing of Voriancorelli would enable the company to access liquidity, operate under the Exchange’s rules and regulations as evidence of transparency and provide opportunities to create new forms of fungible and tradeable assets.
According to him, Voriancorelli is the enabling connector that bridges the gap between businesses within the agricultural ecosystem, delivering sustainable value.
“We are called the ‘matching company’’ because we primarily solve the problem of market linkage to make trading within the sector simple and scalable.
“Underpinning the problem of market linkage is liquidity: whether in form of capital financing, credit, or grant. The cost and availability of this liquidity undercuts profitability for agribusinesses. Therefore, in collaboration with the LCFE, the strength of the capital markets will be brought to bear in agriculture for the first time.
“We are thus making the market for commodities work in Nigeria. Beyond this, we are also supporting the commodities exchange as a stakeholder in its critical role to be an arbiter of transparency, integrity and supervision that provides an independent view of the ecosystem and all other market participants for healthy collaboration,” Akinboro said.
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Managing Director, Voriancorelli (VC), Mr Rufus Udechukwu explained that the firm offers commodities aggregation solution for agricultural commodities to key players by connecting them together via technology driven solutions to facilitate seamless transactions.
Managing Director, Lagos Commodities and Futures Exchange (LCFE), Mr Akin Akeredolu-Ale expressed optimism about the impact of the various infrastructure being deployed by the Exchange under the supervision of the Securities and Exchange Commission (SEC).
He said the company’s structured legal framework, operational framework and surveillance mechanism would create jobs, enhance operations of all stakeholders in the commodities value chain and grow the Gross Domestic Product GDP) of the Nigerian economy.
According to him, the commodities sectors are the primary sectors of an economy and once properly harnessed, they will have multiplier effects on production, manufacturing and by default the service and other sectors.
“We started with a vision to create an enabling environment for all the commodity stakeholders to participate effectively for the development of the commodities value chain, ecosystem and the economy of the country. The Exchange is poised to deal in Exchange Traded Notes and not equities of listed companies,” Akeredolu-Ale said.
He noted that the commodity sector did not suffer setback under COVID-19 pandemic period as people must always consume commodities, pointing out that the commodities ecosystem is a combined $1 trillion economy in the various asset classes comprising oil and gas, solid minerals and agriculture, which remain largely untapped.
“The Exchange is working hard with all the dealing member firms, central securities depository, storage facility owners, capital market operators, rating companies, certification agents and many other institutions for the listing of transparent, structured, contracts for trading, capital raising and the development of the Nigerian commodities ecosystem,” Akeredolu-Ale said.