FCMB Capital Markets Lists Lapo MFBs N3.15bn Bond on FMDQ

FCMB Capital Markets Limited, the investment banking subsidiary of FCMB Group Plc recently acted as financial adviser and Lead Issuing House on the fundraising and listing of Lapo Microfinance Bank Limited’s N3.15 billion bond on the FMDQ OTC platform.

According to a statement from the investment bank, the bond, the first ever by a microfinance bank to raise money in Nigeria’s debt capital market, was priced at 17.75 per cent and has a tenor of 5 years. The Issue was rated A- by Agusto & Co and BBB+ by GCR, which are investment grade ratings.

FCMB Capital Markets acted as the Lead Issuing House on the transaction. As a financial adviser, FCMB Capital Markets was responsible for, amongst others, developing a robust transaction structure that ensures flexibility for the issuer and comfort for the investors, and assisting to obtain regulatory approvals.

According to the MFB, the proceeds would be used to deepen its business in the country, strengthen its capital base, expand its branchless banking solutions and enter new market segments, including the launch of itsagency banking model and the deployment of e-business solutions, among others.

Speaking during the bond listing ceremony in Lagos, the Executive Director of FCMB Capital Markets Limited, Mr. Tolu Osinibi, said: ‘’We are excited and grateful at having been given the opportunity by LAPO Microfinance Bank to have played a leading role on this landmark transaction, where FCMB Capital Markets acted as financial adviser and the Lead Issuing House on the first ever bond issuance by a microfinance Institution in Nigeria’s capital markets.

“The success of this transaction speaks to the institutional strength of LAPO and an affirmation of this strength by institutional investors that have trusted LAPO with the funds they manage.”

Also speaking, the CEO of LAPO Microfinance Bank, Dr. Godwin Ehigiamusoe, said: ‘’The gap between the demand by micro, small and medium businesses and the little supply is still huge. LAPO Microfinance Bank was only able to deliver loans valued at N135.7 billion in 2017.”