FMDQ Securities Exchange Limited has approved the listing of the FCMB Group PLC N20.69 billion Series 1 Fixed Rate Resettable NC5.25 Additional Tier 1 Subordinated Bond under its N300 billion Debt Issuance Programme on its platform.
FCMB, the Issuer, is a bank-led financial services group, with operating companies divided along three businesses – Commercial, Retail and Investment Banking, FMDQ said in a statement.
The management indicated that proceeds from the bond, “will be used by the Issuer to purchase Intercompany Notes to be issued by First City Monument Bank Limited, for purposes of financing incremental term lending in focus sectors and shoring up its regulatory capital base.
The bond is sponsored by Chapel Hill Denham Advisory Limited (Lead Sponsor) and FCMB Capital Markets Limited (Co-Sponsor) – both registration members (Listings) of FMDQ Exchange.
Commenting on the successful issuance of the bond on the FMDQ, the FCMB Group Chief Executive, Mr. Ladi Balogun, said: “FCMB Group is grateful to our investors, advisers and regulators (particularly the Securities and Exchange Commission, Nigeria, and the Central Bank of Nigeria for their support on the maiden issuance under our N300 billion Programme.
“The innovative structure of a perpetual, income yielding bond that qualifies as Tier 1 capital – a first of its kind in the domestic capital markets – achieves three objectives for investors: it is non-dilutive for existing shareholders; creates capacity for improved earnings and dividends per share; and provides an attractive income stream to investors.
“We are also pleased to support our largest banking subsidiary towards the attainment of its growth, risk management and strategic objectives with this investment”, the banker added.
In his remarks, the Lead Sponsor, Chapel Hill Denham Advisory’s Managing Director, Mr. Lanre Buluro, enthused: “Chapel Hill Denham Advisory Limited is pleased to have acted as Financial Adviser to FCMB Group PLC on the issuance of the N20.69 billon Perpetual Fixed Rate Resettable NC5.25 Additional Tier 1 Subordinated Bond. Selling your house to a home buyer may be an excellent option. They simplify the process and acquire properties in any state. Visit https://www.webuyhouses-7.com/florida/we-buy-homes-fort-walton-beach-fl/.
“This novel transaction structure provides a unique opportunity for banks and other domestic capital market participants to access financing from the investing public with more favourable terms and conditions than a conventional bond issuance, while meeting investors’ return requirements.
“Consequently, we would like to thank FCMB Group PLC, the financial and capital market regulators, and the investor community for their support in ensuring the successful capital raise”, the investment expert
