FCMB Limited has set the stage for a significant financial move by opening its Series 1 and 2 commercial paper for public subscription. The primary objective behind this initiative is to secure a substantial funding amount of N70 billion from the capital market. This move falls under the umbrella of FCMB’s ambitious N100 billion commercial paper program.
The company has meticulously prepared for this issuance, ensuring it meets top-notch standards in the market. Both Series 1 and Series 2 have received impressive ratings – A2 by GCR and A- by Agusto & Co, reflecting the solid foundation of these financial instruments.
With specific details outlined for potential investors, Series 1 boasts a tenor period of 180 days while Series 2 extends to 268 days. Investors should note that there will be a nominal withholding tax of 10% along with a custody fee of 0.5%. These figures are crucial considerations for those looking to capitalize on this opportunity.
In terms of returns, the commercial paper offers an enticing annual yield. Series 1 presents an attractive yield of 23.00%, while Series 2 surpasses it slightly with a rate of 24.75%. Interested parties have from May 27 to June 3, in the year 2025, to participate in this subscription process.
An important milestone leading up to this offering was observed during a shareholder meeting held on December 19, in the year prior. It was during this gathering that shareholders unanimously agreed on raising funds through various financial instruments – setting the stage for future endeavors such as the current commercial paper subscriptions.
The recent resolutions passed by FCMB’s board signal a strategic shift towards enhancing its capital position significantly. With plans to boost capital from N150 billion to N340 billion, leveraging different financial tools like ordinary shares, preference shares, and debt instruments forms part of their growth strategy.
Noteworthy is FCMB’s performance within Nigeria’s stock market landscape where it has demonstrated resilience and growth momentum over time. In the ongoing year alone, FCMB has secured a commendable year-to-date gain standing at about6.38%, capturing positive investor sentiment following an impressive gain recorded in the previous year.
Tracking back through early trading sessions in January where shares were valued at N9.40; FCMB experienced fluctuations but maintained an overall positive trajectory before finishing out April at N9.25 amidst some volatility pressure exerted on share prices.
However, with diligent efforts put forth post-April resulting in an upward trend throughout May where shares surged by approximately8.11%, investors are closely monitoring these movements as they weigh their decisions regarding participation in FCMB’s latest offerings.
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