By Modupe Gbadeyanka
The investment banking and asset management subsidiary of FBN Holdings Plc, FBNQuest Merchant Bank, has listed its N5 billion bond on the Nigerian Stock Exchange (NSE).
Business Post gathered that the FBNQ MB Funding SPV PLC Series 1 Bond was admitted into the trading platform of the exchange on Thursday.
The papers were issued by FBNQuest under its N50 billion bond issuance programme launched in November 2018 and the first tranche listed yesterday was 2.3 times over-subscribed.
This assisted in driving the closing price down to 10.50 percent and the net proceeds will be utilised for the purchase of three-year 10.50 percent Senior Unsecured Notes issued by FBNQuest Merchant Bank Limited, pursuant to the terms and conditions in the executed transaction documents.
It was learned that FBNQuest coordinated the principal activities of the transaction ranging from the structuring, arranging, and issuing the Series 1.
The organisation advised on the transaction structure and marketing strategy for the bonds including investor engagements.
The notes were successfully distributed to a diversified mix of investors which included Pension Fund Administrators (PFAs), insurance companies, asset managers, high net-worth individuals (HNIs) and others.
The transaction adds to the organisation’s impressive portfolio, and highlights its capabilities in the successful execution of sizeable capital market and commercial debt transactions.
Managing Director/CEO of FBNQuest, Mr Kayode Akinkugbe, while commenting on the deal, stated that, “We are pleased to announce the listing of the FBNQuest MB Funding SPV PLC Bond on the Nigerian Stock Exchange.
“This is the debut bond issued by the organisation, and the success recorded attests to the degree of confidence investors have in the business.”
He further stated that, “As a full-service investment bank and asset manager, we advised on the bond issuance and structure; and also leveraged our extensive distribution capability to ensure the success of the transaction.”
Also commenting, the CEO of NSE, Mr Oscar Onyema, noted that, “We welcome FBNQuest Merchant Bank’s debut listing of its N5 billion Series 1 Bond on the exchange, as we continue to support the bank in meeting its capital raising needs and business objectives.
“We also commend all the parties to the transaction.
“At the NSE, we are committed to giving issuers and investors a platform to access right-sized capital even in the toughest of times as well as providing opportunities for secondary market trading activities across multiple asset classes – equities, bonds, ETFs.”
FBNQuest has advised on the issuance of several bonds and commercial papers for organisations such as Interswitch; Mixta Real Estate plc, Dangote Cement Plc, Nigerian Breweries Plc (NB), Lafarge Africa Plc, Flour Mills of Nigeria Plc (FMN), Wema Bank Plc, and UACN Property Development Company Plc (UPDC) to mention a few.
The organisation received the award for the Most Innovative Registration Member at the 2019 FMDQ Gold Awards, in recognition of its continuous delivery of value in the registration of bond-related transactions at the FMDQ Securities Exchange.
Dipo Olowookere 
Aduragbemi Omiyale