FCMB Group provides financing of N20.68 billion from the bond market to corporations, other financial institutions, trustees and high net worth individuals.
The fund, according to FCMBThe N300,000,000,000 debt issuance program in the Nigerian capital market will be invested in the group’s banking subsidiary – First City Monument Bank Limited – to enhance the bank’s Tier 1 capital adequacy ratio and total capital adequacy ratio.
The statement, obtained on Friday but dated March 16, 2023, revealed that this will enable the group and subsidiaries to expand their support for Nigeria’s economic growth and development.
The statement to shareholders and the investing public is as follows: “FCMB Group Plc (“FCMB Group” or the “Group”) has successfully issued N20,686,000,000 perpetual 16% fixed rate resettable NC5.25 Additional Tier 1 Capital Subordinate Capital N300,000,000,000 Notes under the Debt Issuance Program (“Series I Notes” or “AT1” or the “Instruments”).
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“The group’s AT1 issuance is the first non-Islamic local currency AT1 instrument issued in Nigeria and is the group’s first N300 billion financing plan in the Nigerian capital market to support its next phase of growth.
“Booking filings began on January 24, 2023 and closed on February 3, 2023. The offer has been well received by the market, with a variety of high value investments including corporates, other financial institutions, trustees and high value investors Active Participating Net Worth Individuals.AT1 Instruments are issued at a liquidation coupon rate of 16.0% per annum.
“The successful issuance of the Series I Notes highlights the group’s extensive track record of innovation in the Nigerian financial services industry and is in line with the Central Bank of Nigeria’s expectations of a stable and well-capitalized bank in the financial sector. Net proceeds from the Series I Notes will be invested in the Group’s Bank business
“The Subsidiary – First City Monument Bank Limited (“the Bank”) – increases the Bank’s Tier 1 capital adequacy ratio and total capital adequacy ratio, enabling the Group and the Bank to expand its support to Nigeria’s economic growth and development.”
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