FCMB completes N20.686bn bonds

The bonds issuance is the first non-sharia local currency AT1 instrument issued in Nigeria and the Group’s maiden issuance of its N300 billion funding programme in the Nigerian Capital Markets to support its next phase of growth.

The AT1 instrument was issued at a clearing coupon rate of 16.0% per annum.

The net proceeds from the Series I Bond will be invested in the Group’s Banking Subsidiary – First City Monument Bank Limited (“the Bank”) – enhancing the Bank’s Tier 1 and total capital adequacy ratios and enabling the Group and the Bank to expand its support for the growth and development of the Nigerian economy.

Commenting on the Bond issuance,  Ladi Balogun, Group Chief Executive of FCMB Group Plc,  said,  “FCMB Group Plc is grateful to our investors, advisers and regulators (particularly the Securities and Exchange Commission and the Central Bank of Nigeria) for their support on the maiden issuance in our N300 billion bond 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 3 objectives for our investors: it is non-dilutive for existing shareholders; creates capacity for potentially improved earnings per share and dividends per share; and provides an attractive income stream for investors in this instrument”.

Yemisi Edun, Managing Director of FCMB Bank Limited  said,  “In addition to strengthening the Bank’s capital base which will comply with the forthcoming application of Basel III capital requirements, the AT-1 bond will enable the Bank to finance incremental term lending in priority sectors.”

-vanguard