FBNQuest the investment banking and asset management subsidiary of FBN Holdings Plc, has continued to play a pivotal role in supporting transactions towards the growth of commercial paper issuances in Nigeria by successfully delivering debt transactions for corporates and institutions.
Commercial Papers (CP) in Nigeria has remained a viable funding option for corporate entities seeking to finance their short-term expenditures, including working capital. FBNQuest has had a strong reputation for helping indigenous and multinational corporates access the Capital Markets to meet their funding goals.
The firm is pleased to have been able to assist institutions such as MTN Nigeria Plc, Dangote Cement Plc, Valency Agro Nigeria Limited, Flour Mills of Nigeria Plc., Nigerian Breweries Plc., CardinalStone Partners Limited, and African Nonferrous Industries Limited, to name a few, in tapping into the Capital Market to access funding.
FBNQuest’s role as Lead sponsor in arranging the registration of CardinalStone Partners Limited’s N20billion Commercial Paper Programme, Flour Mill of Nigeria Plc’s (FMN) N200 billion Commercial Paper Programme, and the subsequent quotation of the first two issuances under that Programme – ₦13.33billon Series 1 and ₦51.64billon Series 2, and African Nonferrous Industries Limited’s N10billion Commercial Paper Programme. These transactions reinforce its commitment to empower corporate institutions to expand into greater funding success through the Capital Market.
Speaking on the transactions, Afolabi Olorode, Head, Corporate & Investment Banking, FBNQuest Merchant Bank, stated ‘’We are pleased to have supported the successful delivery of several commercial paper programmes and other subsequent issuances to our corporate clients. These programmes emphasise the critical role of the Nigerian Capital Market in providing funding to the private sector for sustainable development.
These collaborations are in line with our commitment of delivering value-added investment banking solutions to our stakeholders to enable them to achieve their strategic goals. We will continue to support, strengthen and expand our expertise to demonstrate the most advanced and innovative structures in the Debt Capital Markets’’.
The firm also introduced the use of a Liquidity Support Facility (LSF) structure for UPDC Plc’s Commercial Paper transaction, a feature which enhanced the instrument’s credit with a rating of ‘A-’, and was six notches higher than the Issuer’s rating on the merit of the LSF providers. As a full-service investment bank, FBNQuest has continued to broker Commercial Paper deals for clients across major industries such as Financial Services, Fast Moving Consumer Goods (FMCG), Real Estate, Agriculture and Agro-commodity, Manufacturing, Oil & Gas etc.