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FBNQuest Lists N5bn MB Funding SPV Bond on Nigerian Stock Exchange

FBNQuest Merchant Bank, the investment banking and asset management subsidiary of FBN Holdings Plc, on Friday May 15 at the Nigerian Stock Exchange, listed the FBNQ MB Funding SPV Plc Series 1 Bond.

The N5billion Series 1 bond, coupon rate of 10.50 percent per annum, is a Fixed Rate Senior Unsecured Bonds due 2023, under the company’s N50billion Bond Issuance Programme.

The NSE CEO, Oscar N. Onyema hosts the Managing Director, FBNQuest Merchant Bank, Kayode Akinkugbe to a digital closing gong ceremony by 2:15pm.

The listing ceremony commemorates the successful debut listing of the company’s N5billion Bond on The Exchange.

FBNQuest 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.

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 10.50percent and the Net Proceeds will be utilised for the purchase of three-year 10.50percent 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.

Speaking on the transaction, 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.”

Commenting on the listing, Onyema said, “We welcome FBNQuest Merchant Bank’s debut listing of its N5 billion Series 1 Bond on the Exchange, as we 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”, he said.

FBNQuest has advised on the issuance of several bonds and commercial papers for organisations such as Interswitch; Mixta Real Estate plc, Dangote Cement Plc, Nigerian Breweries Plc (NB), Lafarge Africa Plc, Flour Mills of Nigeria Plc (FMN), Wema Bank Plc, and UACN Property Development Company Plc (UPDC) to mention a few. The organisation received the award for the Most Innovative Registration Member at the 2019 FMDQ Gold Awards, in recognition of its continuous delivery of value in the registration of bond-related transactions at the FMDQ Securities Exchange.

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