Article Summary

  • FCMB 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 N300.00 billion Debt Issuance Programme on its platform
  • The bond will be used by the Issuer to purchase Intercompany Notes to be issued by First City Monument Bank Limited.
  • The FCMB Group bond is sponsored by Chapel Hill Denham Advisory Limited (Lead Sponsor) and FCMB Capital Markets Limited (Co-Sponsor).

FMDQ Securities Exchange Limited (FMDQ) has admitted FCMB Group Plc N20.69 billion Series 1 Fixed Rate Resettable NC5.25 Additional Tier 1 Subordinated Bond under its N300.00 billion Debt Issuance Programme.

This is contained in a statement from FMDQ and made available to Nairametrics.

The FCMB Group 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.

Intercompany Notes

The bond will be used by the Issuer to purchase Intercompany Notes to be issued by First City Monument Bank Limited, for purposes of the Bank financing incremental term lending in focus sectors and shoring up the Bank’s regulatory capital base.

The Group Chief Executive, of FCMB Group PLC, Mr. Ladi Balogun, stated:

  • “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 N300.00 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 Lead Sponsor of the bond on the Exchange, Chapel Hill Denham Advisory Limited, through its Managing Director, Mr. Lanre Buluro, said:

  • “Chapel Hill Denham Advisory Limited is pleased to have acted as Financial Adviser to FCMB Group Plc on the issuance of the N20.69 billion Perpetual Fixed Rate Resettable NC5.25 Additional Tier 1 Subordinated Bond.
  • 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.”