FCMB Launches N70 Billion Commercial Paper Offer, Closes June 3

FCMB Limited has launched its Series 1 and 2 commercial paper issuance for public subscription, aiming to raise N70 billion from the capital market as part of its N100 billion commercial paper program.

The issuance has been rated A2 by GCR and A- by Agusto & Co. and is subject to a 10% withholding tax and a 0.5% custody fee. Series 1 has a tenor of 180 days with an annual yield of 23.00%, while Series 2 has a tenor of 268 days, offering an annual yield of 24.75%. The subscription period runs from May 27 to June 3, 2025, with a minimum subscription requirement of N5 million.

The commercial paper issuance follows a December 19, 2024, shareholders’ meeting where FCMB’s board resolved to increase the company’s capital from N150 billion to N340 billion. To achieve this goal, the board approved the issuance of various financial instruments, including ordinary shares, preference shares, and debt instruments. These will be offered in the Nigerian and international markets through public offerings, private placements, and rights issues.

FCMB has recorded a 6.38% year-to-date gain in 2025, continuing its bullish trend after securing a 27.03% gain in 2024. The company’s shares opened at N9.40 in January 2025 and saw strong trading activity, reaching a high of N12.00 in early February before declining through March and April to close at N9.25. However, shares have since staged a recovery, gaining 8.11% so far in May. The latest commercial paper offering is expected to further solidify FCMB’s market position and strengthen investor confidence in its financial strategy.