Listing of Interswitch Limited’s N23bn Bond on NSE Excites FBNQuest

Goddy Egene

FBNQuest, the investment banking and asset management subsidiary of FBN Holdings Plc, has said it successfully led a consortium of five issuing houses on the recent listing of the Interswitch Limited’s bond on the Nigerian Stock Exchange. Interswitch Limited recently raised N23billion bond with a tenor of seven years, at a fixed rate of 15 per cent as part of the company’s N30 billion Debt Issuance Programme.

FBNQuest Merchant Bank explained in a statement that in its role as lead issuing house assisted the Interswitch Limited in arranging, structuring and issuing the Series 1 Bond out of the Bond Issuance Programme launched in May 2019.

The bonds were successfully distributed to a diversified mix of investors which included Pension Fund Administrators (PFAs), banks, asset managers and others. According to financial institute, the final order book was N51billion out of which a total of N23billion bids were accepted meaning the offer was 222 per cent subscribed.

“The success of the transaction with an order book of 222 per cent is a testament to the leading role of the company in the technology and payment processing space where they have consistently led innovation and product development. FBNQuest is proud to have led this milestone transaction,” it said.

Speaking on the transaction, Head, Investment Banking, FBNQuest Merchant Bank, Patrick Mgbenwelu, said: “We are pleased to have advised Interswitch Limited on the bond listing on the NSE. As a full service investment bank, we advised on the bond issuance, structure, and also leveraged our extensive distribution capability to successfully distribute the transaction.”

Mgbenwelu added that FBNQuest Securities also played a vital role by acting as the Stockbrokers to the listing of the first bond issue by a fintech to be listed on the NSE.

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