Lists FSDH N12bn bonds
By Nkiruka Nnorom
FMDQ Securities Exchange Limited has approved the quotation of the N36.44 billion Commercial Papers (CPs) floated by Coronation Merchant Bank Limited on its platform.
The CPs comprised of N0.71 billion series 13 and N14.13 billion series 14 Commercial Papers (CPs) in March 2021, and the N1.41 billion Series 15 and N20.19 billion Series 16 CPs in May 2021, both under its N100 billion CP programme, on its platform.
The net proceeds from the CPs, according to the bank, would support its short term funding requirements.
The Exchange also approved the listing of the FSDH Funding SPV Plc N12 billion bonds, comprising of N7.05 billion tranche A and N4.95 billion tranche B series 1 fixed rate bonds under its N30 billion debt issuance programme on its platform. FSDH Funding SPV Plc is a special purpose vehicle set up to raise capital from the Nigerian debt capital market for FSDH Merchant Bank Limited.
Commenting on the completion of the commercial papers quotation, Banjo Adegbohungbe, MD/CEO, Coronation Merchant Bank, said: “This transaction further underscores the confidence of investors in our brand and entrenches our continuous leadership in the use of market instruments to create shared prosperity for all stakeholders”.
Mr. Adekunle Awojobi, Director, FSDH Funding SPV Plc, speaking on the successful issuance of the bonds by the company, said: “The bond issue is the first series under the programme and comprises of two tranches (Tranche A & B) of subordinated and senior bond notes, each with a 5-year tenure.
“The listing of the bonds on FMDQ’s platform will help provide visibility and enhance the liquidity of the bonds. The net proceeds of the bond issue will be used to fund the growth of risk assets of the sponsor, FSDH Merchant Bank Limited. A portion of the bond issuance will serve the dual purpose of shoring up the bank’s Tier 2 capital in line with its internal capital adequacy assessment process”.
Also, Mr. Egie Akpata, Director, Union Capital Markets Limited, the sponsor of the bond on the Exchange, said: “The listing of the bonds on the Exchange allows for liquidity and trading of the bonds, which is positive for the investors.”