Business
FCMB Concludes N26Bn Bond Issuance at a 16% Interest Rate.
FCMB concludes N26Bn bond issuance at a 16% interest rate.
FCMB Group Plc has announced the completion of a N26 billion bond issuance, a significant move in the Nigerian financial market.
This Series 2 Bond, part of the Group’s larger N300 billion Debt Issuance Programme, is named the Perpetual 16% Fixed Rate Resettable NC5.25 Additional Tier I Subordinated Bonds.
NewsReport stated that according to FCMB, the issuance witnessed broad market interest, drawing investments from various sectors, including corporate entities, other financial institutions, trustees, and high-net-worth individuals.
The bond, issued at a fixed rate of 16.0% per year, reflects current market trends and investor confidence in the group’s financial strategy. Nigeria’s inflation rate for the month of September is 26.72, while the average 12-month rate is around 22%.
This Series 2 bond issuance aligns with the Central Bank of Nigeria’s goal of strengthening the capital base of Nigerian banks.
The proceeds from this issuance are slated for injection into the group’s banking subsidiary, First City Monument Bank Limited (“FCMB”), and are expected to bolster the bank’s capabilities in executing its long-term objectives.
The issuance marks a strategic step for FCMB Group in securing additional capital to support its operations and long-term goals.
The process was facilitated by Chapel Hill Denham Advisory Limited and FCMB Capital Markets Limited, which served as the issuing houses for the bond.