Seven Nigerian banks have floated Global Deposit Receipts (GDR) worth N232 billion, the Securities and Exchange Commission (SEC) announced on Tuesday in Abuja. The GDR is an instrument issued by capital markets regulatory bodies to enable companies to be listed in foreign stock markets.

The Director-General of the Commission, Mr Musa Al-Faki, said three banks had already been listed on the London Stock Exchange with outstanding results. The banks are the Guaranty Trust Bank, Diamond Bank and Intercontinental Bank.

Speaking at the launch of e-allotment, a new product for the capital market, Al-Faki said the issuance of securities increased with new equities floated in 2007 worth N1.34 trillion. He said the total securities issued at the capital market in 2007 exceeded the aggregate equities issued between 1981 and 2006 put at N1.04 trillion."The commission is seriously working with stakeholders to revitalise the corporate bond market.
"The aggregate value of yearly new issues, which stood at N195.4 billion in 2004 increased to N552.8 billion in 2005, '' he said.

In 2006, according to him, the aggregate value of new issues went up to N707.39 billion.
Al-Faki explained that the e-allotment referred to the electronic (automated) capturing of allotted shares into investors accounts in the Central Securities Clearing System (CSCS)."It replaces the traditional practice of manual issuance of share certificates. It is a simply direct credit system into an investor's account with the CSCS,'' he said.

In his speech, the Minister of Finance, Dr Shamsudeen Usman, said the e-allotment will usher in an era of "certificate-less'' system. Alhaji Jibrin Zarewa, a Director in Charge of Finance in the ministry, who represented the minister, unveiled the new product.