Bonds

FMDQ Admits N53.2bn Bonds of Fidelity Bank, TSL SPV

Published

2 years ago

March 15, 2021

FMDQ Securities Exchange recently approved the listing of the Fidelity Bank Plc Series 1N41.21billion Fixed Rate Subordinated Unsecured Bond under its N100.00billion Bond Issuance Programme to its platform.

FMDQ also announced the approved the listing of the TSL SPV Plc N12.00 billion Series 1 Guaranteed Fixed Rate Infrastructure Bond under its N50.00 billion Bond Issuance Programme. According to the exchange, the significant listing will allow Fidelity Bank Plc fund key activities that would ultimately translate in the development of the Banking sector and the Nigerian economy at large.

Speaking on the development, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe, said: “This is a landmark bond issuance. It is by far the largest local bond transaction by any commercial bank in Nigeria, thus validating the continued investor confidence in our well-experienced management team. By registering and listing the bonds on FMDQ Securities Exchange Limited, Fidelity Bank has provided its bondholders a robust and transparent platform that will improve the liquidity and visibility of their investments.”

Commenting on the transaction, the Co-CEO, Planet Capital Limited, Mr. Efe Akhigbe, said “Planet Capital is pleased to sponsor the listing of the Bond, having led and collaborated with a club of investment banking firms that advised on this Transaction.”

On his part, Managing Director/Chief Executive Officer, TSL SPV Plc, Mr. Ayodeji Wright, said: “TSL’s Senior Guaranteed Infrastructure Bonds was conceived a few years ago and I am profoundly grateful to the entirety of the transaction tarties, TSL bond investors, InfraCredit and the regulators, who have made this a reality today. TSL remains committed to delivering its vision of providing bespoke supply chain and logistics solutions within Nigeria, and to sub-Saharan Africa. The unprecedented issuance of the N12 billion, 10 per cent fixed rate, 10-year tenor TSL bonds is a first in Nigeria’s transportation and logistics sector, which will undoubtedly be the springboard to provide the financial reinforcement to our business strategy and strong operating model. Its proceeds will in part be used to stimulate an atmosphere for profitable growth for the business and in part for the improvement of the existing business.”

TSL had set up a special purpose vehicle (SPV) to raise finance through the listing of debt securities which would be used to boost the issuer’s business expansion exercise and to restructure the company’s debts over the specified period. TSL is a leading provider of customised logistics and transportation solutions in Nigeria. The company currently provides regional logistics services to clients in the oil and gas, mining and construction, fast moving consumer goods (FMCG), and agricultural sectors.

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Bonds

Nigeria Raises N724.9 Billion in February 2023 Federal Government Bond Auction

A total of 577 bids worth N724.9 billion were received for the N360 billion amount offered, with the total amount allotted being N771.56 billion.

Published

1 month ago

February 14, 2023

Samed Olukoya

The Debt Management Office (DMO) in Nigeria has announced that it raised N724.9 billion in the Federal Government bond auction held on February 13, 2023.

This marks a 100% increase compared to the previous year. A total of 577 bids worth N724.9 billion were received for the N360 billion amount offered, with the total amount allotted being N771.56 billion, Investors King reports.

Successful bids were allotted at marginal rates of 13.99%, 14.90%, 15.90%, and 16.00%, respectively, for the 10-year, 10-year, 20-year, and 30-year bonds. The auction was part of the DMO’s efforts to raise funds for the implementation of the Federal Government’s 2023 budget and to finance critical infrastructure projects across the country.

While Nigeria’s rising debt profile has been a topic of concern, the DMO has been actively promoting the issuance of FGN bonds as a means of diversifying the country’s funding sources and reducing its dependence on short-term borrowing.

The FGN bond market has grown significantly in recent years, with a wide range of maturities and attractive yields for investors.

The success of the February 2023 FGN bond auction highlights the continued strong demand for FGN bonds and the government’s commitment to meeting its funding needs through the capital markets.

The settlement date for the auction was February 15, 2023, and the bonds will mature between February 2028 and April 2049.

Bonds

FCMB to Issue N30 Billion Series I Additional Tier 1 Bond

FCMB Group to borrow N30 billion from the debt market

Published

2 months ago

January 24, 2023

Samed Olukoya

FCMB Group Plc, one of Nigeria’s leading tier II financial institutions, has perfected plans to raise N30 billion from the debt market via bond issuance.

The group disclosed this in a statement signed by Funmi Adedibu, Company Secretary on Tuesday, January 24, 2023, and obtained by Investors King.

The N30 billion series I bond is an additional bond under the bank’s N300 billion debt issuance programme. The announcement was done after the group completed the registration of its N300 billion debt issuance programme with the Securities and Exchange Commission and received approval.

Debt issuance is a method used to raise funds by both the government and public companies through the sale of bonds to external investors.

In part, the statement reads, “the Issuance represents the first non-sharia local currency AT1 instrument to be issued in Nigeria and has received CBN’s no-objection.”

“FCMB Group will commence the book build in respect of the Series I Bond on January 24, 2023.”

First City Monument Bank (FCMB), a member of FCMB Group Plc, is a financial services holding company headquartered in Lagos. FCMB Group Plc has nine subsidiaries divided among three business groups: commercial and retail banking, investment banking, and asset and wealth management.

Bonds

Ecobank Redeems 5-year US$400 Million Convertible Debt

Ecobank Transnational Incorporated (ETI) has redeemed its 5-year US$400 million debt issued in 2017 to all holders, the bank said in a regulatory filing released on Tuesday.

Published

5 months ago

November 2, 2022

Samed Olukoya

Ecobank Transnational Incorporated (ETI) has redeemed its 5-year US$400 million debt issued in 2017 to all holders, the bank said in a regulatory filing released on Tuesday.

The Lomé-based parent company of the Ecobank Group, announces today that it has repaid upon maturity the 5-year US$400 million convertible debt issued in September and October 2017.

According to the bank, the holders of the convertible debt did not exercise their option to convert their holdings into ordinary shares during the conversion period of 19 October 2019 to 13 October 2022.

As a result, ETI redeemed the debt at 110% of the principal amount, in line with the terms of the convertible debt agreements.

In addition, the repayment did not affect ETI’s regulatory capital since the debt had been fully amortised for capital in 2021.