FCMB Limited has opened its Series 1 and 2 commercial paper for public subscription, aiming to raise N70 billion from the capital market.
This issuance is part of the company’s N100 billion commercial paper programme and has been rated A2 by GCR and A- by Agusto & Co.
The commercial paper is subject to a 10% withholding tax and a 0.5% custody fee, with Series 1 having a tenor of 180 days and Series 2 having a tenor of 268 days.
Offering an annual yield of 23.00% for Series 1 and 24.75% for Series 2, the subscription runs from May 27 to June 3, 2025, with a minimum subscription amount of N5 million.
The commercial paper offering follows a December 19, 2024, meeting where shareholders agreed to raise funds by issuing a variety of financial instruments.
On December 19, FCMB’s board passed a resolution to increase the company’s capital from N150 billion to N340 billion.
To achieve this goal, the board resolved to issue a variety of financial instruments, including ordinary shares, preference shares, and several types of debt instruments.
These instruments were slated to be offered in both the Nigerian and international markets, using multiple channels such as public offerings, private placements, and rights issues.
The recent Series 1 and 2 offerings, targeting N70 billion within a N100 billion program, provide the opportunity for the public to subscribe to commercial paper debt instruments and are part of the company’s broader capital raising strategy.
FCMB has recorded a 6.38% year-to-date gain so far in 2025, continuing a long-term bullish trend in the Nigerian stock market after posting a strong 27.03% gain in 2024.
However, shares of the company have since staged a recovery, gaining 8.11% so far in May.