FSDH Merchant Bank Raises N14.40bn via Commercial Paper
FSDH Merchant Bank Limited said it successfully raised N14.40 billion from its Series 3 and Series 4 Commercial Papers (CPs) issuance.
Collectively, Series 3 and 4 represent FSDH Merchant Bankâ€™s second issuance under its N30 Billion CP Programme established in 2016.
In a statement yesterday, it revealed that Stanbic IBTC Capital Limited acted as Lead Arranger/Dealer while United Capital Plc and FSDH MB acted in the capacity of co-arrangers/dealers, and FSDH MB as issuing, calculation and paying agent.
The CPs offer, which closed on 26 May 2017, were open to investors at a discount rate of 18.50% for the Series 3 and 18.80% for the Series 4.
It further stated that the offer was received with considerable investor interest, and a high subscription level despite the persistent lack of liquidity and less than favourable market conditions so far experienced in the first half of 2017.
â€œThis result is testament to investorsâ€™ confidence in FSDH MB as a credible institution with sound management and corporate governance practices, and an enviable track record of successful business operations in the domestic financial market,â€ the statement added.
The Managing Director, FSDH MB, Mrs. Hamda Ambah emphasised that the success of the bankâ€™s most recent CP Issuance reaffirmed the confidence placed by the market in the bankâ€™s brand and its strategic intent.
The CPs, were listed on the FMDQ platform on 20 June 2017 and the proceeds of the Issuance will be utilised to support FSDH MBâ€™s short term financing requirements.