First City Monument Bank Limited, the flagship company in the FCMB Group Plc, has suspended its planned capital raiser of about N30 billion in short-term debt capital through the issuance of commercial papers (CPs).
In a regulatory filing signed by its Company Secretary, Mrs Olufunmilayo Adedibu, FCMB yesterday said it was suspending the CP issuance due to recent price distortion in the market.
“This is as a result of the Nigerian Treasury Bills auction of Wednesday, December 9, 2020, which distorted price discovery,” FCMB stated.
FCMB had planned the N30 billion CP issuance under its N100 billion CP programme. The CP was arranged with a tenor of 260 days.
FCMB had indicated that the net proceeds from the suspended debt capital raising would have been used to support its short-term funding needs. According to the group, the CP issuance would serve as an additional funding source for the bank.
