Nigeria’s First City Monument Bank
(FCMB) said it plans to raise up to N20 billion through Commercial Paper to
support the lender’s short-term funding need.
In a regulatory filing to the Nigerian Stock Exchange (NSE), the lender said the fundraising was part of the N100 billion Commercial Paper (CP) programme.
The CP with a tenor of 269-day, the
bank said would serve as additional source of funding for the lender.
The Bank ranks amongst the top 10
banks, and has presence in major cities, in Nigeria, with an asset base of
NGN1.4 Trillion and total equity of N155.2 Billion as at 30th September 2019.
The FMDQ had approved the
registration of the FCMB N100 billion Commercial Paper Programme on its
platform on October 25, 2017.
Commercial papers are mainly unsecured, short-term debt instruments issued by companies, usually for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial papers rarely range any longer than 270 days.
With the registration of this CP
programme, FCMB will be able to easily raise short-term finance from the debt
capital markets (DCM), within its respective programme limit, to support its
business operations as at when required in the future.
No date has been announced for the commencement of the debt issue by the lender.