FMDQ Securities Exchange Limited (FMDQ Exchange) has announced the listing of the FSDH Funding SPV PLC ₦7.05 billion Tranche A and ₦4.95 billion Tranche B Series 1 fixed-rate bonds under its ₦30 billion debt issuance programme on its platform.
FSDH Funding SPV is a special purpose vehicle set up to raise capital from the Nigerian debt capital market for FSDH Merchant Bank Limited.
Speaking on the successful issuance of the bonds, the Director, FSDH Funding SPV PLC, Adekunle Awojobi said: “We are pleased about the successful ₦12 billion capital raised under the FSDH Funding SPV’s ₦30 billion debt issuance programme. The bond issue is the first series under the programme and comprises of two Tranches (Tranche A & B) of subordinated and senior bond notes, each with a five-year tenure.”
He said the listing would help provide visibility and enhance the liquidity of the bonds.
According to him, the net proceeds of the bond will be used to fund the growth of risk assets of the sponsor, FSDH Merchant Bank Limited.
He pointed out that a portion of the bond issuance would serve the dual purpose of shoring up the bank’s tier 2 capital in line with its internal capital adequacy assessment process.
“We would like to thank and commend Union Capital Markets Limited for facilitating the listing of the bonds on FMDQ and the issuing houses, Stanbic IBTC Capital Limited, FSDH Capital Limited, Rand Merchant Bank Nigeria Limited and United Capital PLC for their support in ensuring the successful capital raising,” he said.
Also, the Director, Union Capital Markets Limited (the Sponsor of the bond on the exchange and a registration member listings of FMDQ), Egie Akpata, expressed delight at the successful listing of the ₦12.00 billion FSDH Funding SPV PLC Series 1 (Tranche A & Tranche B) bonds on FMDQ.
He said the listing of the bonds on the exchange allows for liquidity and trading of the bonds, which is positive for the investors.
“We are glad that Union Capital Markets was instrumental in the successful listing of the bonds on FMDQ and thank the board and Management of FSDH Merchant Bank for the opportunity to work with them.”