{"id":1020815,"date":"2023-05-23T08:28:41","date_gmt":"2023-05-23T08:28:41","guid":{"rendered":"https:\/\/fmdqgroup.com\/exchange\/fcmb-group-plc-lists-its-pioneer-bond-of-%e2%82%a620-69-billion-on-fmdq-exchange\/"},"modified":"2023-05-23T08:28:41","modified_gmt":"2023-05-23T08:28:41","slug":"fcmb-group-plc-lists-its-pioneer-bond-of-%e2%82%a620-69-billion-on-fmdq-exchange","status":"publish","type":"post","link":"https:\/\/fmdqgroup.com\/exchange\/fcmb-group-plc-lists-its-pioneer-bond-of-%e2%82%a620-69-billion-on-fmdq-exchange\/","title":{"rendered":"FCMB Group PLC Lists its Pioneer Bond of \u20a620.69 Billion on FMDQ Exchange"},"content":{"rendered":"
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As a Securities Exchange with a commitment to facilitate growth and development in the Nigerian debt markets and the economy at large, FMDQ Securities Exchange Limited (\u201cFMDQ Exchange\u201d or the \u201cExchange\u201d) continues to promote an efficient, transparent, and well-regulated market, which attract and retain both domestic and foreign investors. It is in this regard that the Exchange, through its Board Listings and Markets Committee, has approved the listing of the FCMB Group PLC \u20a620.69 billion Series 1 Fixed Rate Resettable NC5.25 Additional Tier 1 Subordinated Bond under its \u20a6300.00 billion Debt Issuance Programme on its platform in May 2023.<\/p>\n

FCMB Group PLC (\u201cFCMB Group\u201d or the \u201cIssuer\u201d) is a bank-led financial services group, headquartered in Lagos, Nigeria, with operating companies divided along three business groups \u2013 Commercial, Retail and Investment Banking. The FCMB Group bond, which is sponsored by Chapel Hill Denham Advisory Limited (Lead Sponsor) and FCMB Capital Markets Limited (Co-Sponsor) \u2013 both Registration Member (Listings) of FMDQ Exchange, will be used by the Issuer to purchase Intercompany Notes to be issued by First City Monument Bank Limited (the \u201cBank\u201d), for purposes of the Bank financing incremental term lending in focus sectors and shoring up the Bank\u2019s regulatory capital base.<\/p>\n

Speaking on the successful bond issuance, the Group Chief Executive, FCMB Group PLC, Mr. Ladi Balogun, stated \u201cFCMB Group is grateful to our investors, advisers and regulators (particularly the Securities and Exchange Commission, Nigeria and the Central Bank of Nigeria) for their support on the maiden issuance under our \u20a6300.00 billion Programme. The innovative structure of a perpetual, income yielding bond that qualifies as Tier 1 capital \u2013 a first of its kind in the domestic capital markets \u2013 achieves three objectives for investors: it is non-dilutive for existing shareholders; creates capacity for improved earnings and dividends per share; and provides an attractive income stream to investors. We are also pleased to support our largest banking subsidiary towards the attainment of its growth, risk management and strategic objectives with this investment.\u201d<\/p>\n

Furthermore, the Lead Sponsor of the bond on the Exchange, Chapel Hill Denham Advisory Limited, through its Managing Director, Mr. Lanre Buluro, said \u201cChapel Hill Denham Advisory Limited is pleased to have acted as Financial Adviser to FCMB Group PLC on the issuance of the \u20a620.69 billon Perpetual Fixed Rate Resettable NC5.25 Additional Tier 1 Subordinated Bond. This novel transaction structure provides a unique opportunity for banks and other domestic capital market participants to access financing from the investing public with more favourable terms and conditions than a conventional bond issuance, while meeting investors\u2019 return requirements. Consequently, we would like to thank FCMB Group PLC, the financial and capital market regulators, and the investor community for their support in ensuring the successful capital raise.\u201d<\/p>\n

FMDQ Exchange will continue to work collaboratively with market stakeholders to align the nation\u2019s debt markets to international standards, and will, through the promotion of product and service innovation and championing of key market development initiatives, take commendable steps to ensure that growth and development opportunities abound for the markets under its purview.<\/p>\n

FMDQ Group is Africa\u2019s first vertically integrated financial market infrastructure (\u201cFMI\u201d) group, strategically positioned to provide registration, listing, quotation and noting services; integrated trading, clearing & central counterparty, settlement, and risk management for financial market transactions; depository of securities, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries \u2013 FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited. As a sustainability-focused FMI group, FMDQ Group, through FMDQ Exchange, operates Africa\u2019s premier Green Exchange \u2013 FMDQ Green Exchange \u2013 positioned to lead the transition towards a sustainable future.<\/p>\n

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