First City Monument Bank Plc has raised $150 million loan from the international investing community, for on-lending to critical sectors of the economy. The loan will help the bank boost its interest earning capacity in the 2014 operating year. The unaudited nine months results of the bank ending September 30th 2013 show that the bank earned N41.1 billion net interest income, and net interest margin of 7.8 per cent , which translated to 7.8 kobo interest on every N1 of loan granted.

Announcing the loan deal, the bank in a statement said, “Commerzbank Aktiengesellschaft and Standard Chartered Bank, acting as Initial Mandated Lead Arrangers and Book-runners,  have  disclosed  the successful signing of a  US$ 150,000,000 Senior Unsecured Term Loan Facility for First City Monument Bank  (FCMB)  Limited. The agreement was signed recently and represents First City Monument Bank’s  largest fundraising to date in the commercial bank syndicated loan market.

The Facility, which was pre-funded by  Commerzbank Aktiengesellschaft  and Standard Chartered Bank, was  launched at US$100,000,000 and subsequently increased following a highly successful general syndication phase.  Proceeds of the Facility will be used for general lending purposes.   Standard Chartered Bank is acting as Facility Agent.

Speaking at the signing ceremony, the Deputy Managing Director of First City Monument Bank, Mr. Segun Odusanya, said, ‘’the  successful conclusion, oversubscription and the number of international financial institutions that participated in the loan syndication indicates the level of confidence which the international banking community have in First City Monument Bank Limited and the Nigerian market as a whole”.

“The proceeds of the fund raising will be used to support medium term lending to key sectors of the economy such as Power, Oil & Gas Upstream , Manufacturing and Agri-business in line with the Bank’s commitment to supporting the critical areas to the success of the Nigerian economy”, Mr. Odusanya revealed.