FBNQuest Merchant Bank (MB), the investment banking and asset management subsidiary of FBN Holdings Plc, has has listed N5 billion on the Nigerian Stock Exchange (NSE).
The bank said the listing was part of the N50 billion Funding Special Purpose Vehicle (SPV) Plc Series 1 Bond Issuance programme. In a statement, the firm said it coordinated the principal activities of the transaction ranging from the structuring, arranging, and issuing the Series 1 Bond out of the Bond Issuance Programme launched in November 2018. The organisation advised on the transaction structure and marketing strategy for the bonds including investor engagements.
Chief Executive Officer, NSE, Oscar N. Onyema, said, said the exchange will 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.”
Speaking on the transaction, Managing Director/CEO, Kayode Akinkugbe, stated, “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.”
The Bonds were successfully distributed to a diversified mix of investors which included Pension Fund Administrators (PFAs), Insurance Companies, Asset Managers, HNIs and Others. The offer was 2.3 times over-subscribed, which assisted in driving the closing price down to 10.50 per cent and the Net Proceeds will be utilised for the purchase of three-year 10.50 per cent Senior Unsecured Notes issued by FBNQuest Merchant Bank Limited, pursuant to the terms and conditions in the executed transaction documents.
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.
