FCMB lists N26bn bond on FMDQ

First City Monument Bank Limited on Monday listed its N26bn series 1, seven-year 14.25 per cent fixed rate unsecured bond on the FMDQ OTC Plc.

The bond, which is due in the year 2021, is under a N100bn debt issuance programme with FCMB Capital Markets Limited, the investment banking subsidiary of FCMB Group Plc, as the issuing house and sponsor of the bond.

At the listing ceremony, which was held at the head office of FMDQ OTC in Lagos, the Group Managing Director and Chief Executive Officer, FCMB Limited, Mr. Ladi Balogun, said the move was significant as it would enable the bank to boost its capital and support its customers in the current challenging times.

He said, “The significance of listing the FCMB bond on the FMDQ platform is hinged on the availability of a readily accessible liquid market to the bondholders, where the value of their investments can easily be determined and monitored on a daily basis. It also provides a platform to realise their investment when necessary.”

He added that the proceeds of the bond would be used in strengthening its capital base, enhancing its capital adequacy ratio, expanding its distribution channels and infrastructure as well as growing its risk assets with a view to enhancing income.

Balogun commended the FMDQ for its efforts aimed at creating more depth in the Nigerian debt market and for its seamless processes and drive to achieve market transparency by deploying technology-driven initiatives.

The Group Head, Business Development, FMDQ, Ms. Tumi Sekoni, explained that the company, recognising the growth potential of issuers of debt in the Nigerian capital market, provided a unique opportunity for the issuers to raise the profile of their issues and access a deep pool of funds.

According to her, the over-the-counter securities exchange provides a wide range of benefits across the debt market value chain, amongst which are global visibility, transparency, improved secondary market liquidity, price formation and benchmark pricing.

The Executive Director, FCMB Capital Markets Limited, Mr. Tolu Osinibi, said the FMDQ platform had been instrumental in encouraging the application of international best practices in the local trading environment and in the provision of credible, real-time market information, which enabled greater participation by market operators and significantly enhanced liquidity.

Osinibi expressed excitement at market development initiatives driven by FMDQ, which had led to the revival of the commercial paper market, stressing that he looked forward to more of such initiatives.

He added, “As a registered member of FMDQ, FCMB Capital Markets is proud to be part of this journey. We will continue to actively encourage its issuer clients to list their fixed income securities on the FMDQ platform and be part of this market transforming initiative.’’

The ceremony included the unveiling of the FMDQ bond listing scroll, the presentation of the FMDQ bond listing plaque and autographing of the FMDQ bond listing wall of fame.

Last   year, FCMB successfully secured over $300m medium and long-term funding from development finance institutions and international commercial banks in four different transactions.

According to the bank, it is using the proceeds of the facility for general lending purposes to key sectors of the Nigerian economy, branch development as well as channel enhancement.