The Nigerian Exchange Limited has listed a N20.69 billion bond issued by the FCMB Group.
According to The Punch, the NGX stated that the lender’s memorandum listing of the bond is under FCMB’s N300bn Debt Issuance Program in a market bulletin sent to capital market operators and signed by the Head, Listings Regulation Department of NGX Regulation, Lilian Dako.
The debt instrument that was listed on Friday is described as “perpetual 16 percent 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 total nominal amount of the bond is N20.69 billion, and there are 20,686,000 units in circulation, each worth N1,000.
The first interest payment date, which was also disclosed, was set for August 16, 2023.
In March, FCMB Group Plc made a N20.68 billion bond issuance announcement. The group claimed that the issuance was the first Additional Tier 1 instrument in Nigeria to be issued in local currency other than sharia in a corporate notice signed by the company secretary, Olufunmilayo Adedibu.
The book build for this instrument started on January 24, 2023, and ended on February 3, 2023. According to the organisation, high net-worth individuals, corporates, and other financial institutions actively participated in the offer.
According to FCMB, the net proceeds from the Series I Bond will be invested in First City Monument Bank Limited, a banking subsidiary of the Group, to raise the bank’s Tier 1 and total capital adequacy ratios.
The Group Chief Executive of FCMB Group Plc, Ladi Balogun, commented on the Series I Bond issuance, saying, “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.”
