The FCMB Group has listed N20.69bn bond on the Nigerian Exchange Limited.

In a market bulletin signed by Lilian Dako for the Head, Listings Regulation Department of NGX  Regulation, to capital market operators, the NGX said that lender’s memorandum listing of the bond is under FCMB’s N300bn Debt Issuance Program.

The debt instrument which was listed on Friday is a “perpetual 16 per cent fixed rate resettable NC 5.25 additional tier 1 subordinated bonds (the Bonds or AT1 Instrument) under the Issuer’s N300,000,000,000 Debt Issuance Program.”

The bond’s aggregate nominal amount is N20.69bn with the volume being 20,686,000 units at N1,000 each.

It was also revealed that the first interest payment date was August 16, 2023.

FCMB Group Plc announced the issuance of N20.68bn bond in March. In a corporate notice signed by the Company Secretary, Olufunmilayo Adedibu, the group said that the issuance was the first non-Sharia local currency Additional Tier 1 instrument issued in Nigeria.

For this instrument, the book build commenced on January 24, 2023, and closed on February 3, 2023, and the group said that the offer had received active participation from corporates, other financial institutions, trustees and high net-worth individuals.

FCMB said that the net proceeds from the Series I Bond will be invested in the Group’s banking subsidiary – First City Monument Bank Limited to enhance the bank’s Tier 1 and total capital adequacy ratios.

Commenting on the Series I Bond issuance, the Group Chief Executive of FCMB Group Plc, Ladi Balogun, said, “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 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.”

Leave a Reply

Your email address will not be published. Required fields are marked *