FCMB Group announces issuance of series I Bond

FCMB Group Plc (“FCMB Group” or the “Group”) has successfully completed the issuance of N20,686,000,000 Perpetual 16% Fixed Rate Resettable NC5.25 Additional Tier I Capital Subordinated Bonds (“Series I Bonds” or “AT1” or “Instruments”) under Debt Issuance Program N300,000,000,000.

The Group’s AT1 issuance is the first non-Shariah local currency AT1 instrument to be issued in Nigeria and the Group’s first issuance of the N300 billion financing program in the Nigerian Capital Market to support the next phase of growth.

The book building started on January 24, 2023, and closed on February 3, 2023. The offer was well received by the market with the active participation of various high net worth investors, including Companies, other Financial Institutions, Trustees and high net worth. – individual worth. AT1 instruments are issued with a clearing coupon rate of 16.0% per annum.

The successful issuance of Series I Bonds highlights the Group’s track record of innovation across the broad spectrum of the Nigerian financial services industry and in line with Central Bank of Nigeria‘s desire for financial sector stability and well-capitalized banks.

The net proceeds from the Series I Bonds will be invested in the Group’s Banking Subsidiary – First City Monument Bank Limited (“the Bank”) – increasing the Bank’s Tier 1 and total capital adequacy ratio and allowing the Group and the Bank to develop support. for the growth and development of the Nigerian economy.

Commenting on the issuance of Series I Bonds, Ladi Balogun, Group Chief Executive of FCMB Group Plc said: “FCMB Group Plc is grateful to investors, advisors and regulators (especially the Securities and Exchange Commission and the Central Bank of Nigeria) for their support. regarding the first issuance in the program N300 billion bond. The innovative structure of a continuous, income-generating bond, which qualifies as tier 1 capital, – a first in the domestic Capital Market – achieves 3 objectives for our investors: non-dilutive for existing shareholders; creating capacity to potentially increase earnings per share and dividend per share; and provide an attractive income stream for investors in this instrument. We are also happy to support the largest banking subsidiary to achieve growth, risk management and strategic goals with this investment.

Yemisi Edun, Managing Director of First City Monument Bank Limited said: “FCMB is very proud to be part of a group that embraces innovation and thanks the investor community for the support that will allow the Bank to achieve its long-term strategy. In addition to strengthening the Bank’s capital base that will comply with application of the upcoming Basel III capital requirements, AT-1 bonds will allow the Bank to finance additional term loans in priority sectors.

Chapel Hill Denham Advisory Limited and FCMB Capital Markets Limited are acting as Issuing House for the Series I Bonds.