By Aduragbemi Omiyale
A mid-level financial institution in Nigeria, First City Monument Bank (FCMB) Limited, is looking to raise a short-term fund worth N20 billion via the sale of commercial papers.
The issuance is under the N100 billion commercial paper issuance programme of the banking firm.
Business Post gathered that this exercise is the first tranche of the CP scheme is with a tenor of 268 days and is offered at a discount rate of 8.8806 per cent and an implied yield of 9.50001 per cent.
Subscription for the notes started on Wednesday, February 23, 2022, and will end on Monday, February 28, 2022, with the settlement date fixed for Wednesday, March 2, 2022.
According to a notice obtained by Business Post, the minimum subscription for the debt instrument is N5 million, with FCMB Capital Markets Limited as the lead dealer and after the issuance, the papers would be listed on the FMDQ Securities Exchange Limited.
FCMB, the banking subsidiary of FCMB Group, which is listed on the Nigerian Exchange (NGX) Limited, will use the proceeds of the CP to support its short-term financing requirement.
FCMB is a full-service commercial bank with a strong retail focus and licensed by the Central Bank of Nigeria. It is the flagship company of FCMB Group and has about 8 million customers and 205 branches in Nigeria and a banking subsidiary, FCMB Bank (UK) Limited, in the United Kingdom.
FCMB Bank (UK) Limited is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA in the United Kingdom.
The lender ranks amongst the top 10 banks and has a presence in major cities in Nigeria, an asset base of N2.4 trillion and total equity of N205.9 billion as of 30 September 2021.
Adedapo Adesanya