FCMB and HSBC SIGN PLACEMENT STRUCTURED DEBT DEAL, FOR US $100 million
HSBC Bank plc has successfully executed a ‘landmark’, privately placed, non-secured structured debt instrument totalling US$100 million with First City Monument Bank (FCMB) Nigeria. This is the first agreement of its kind with an African bank in the international capital markets.
The facility is part of a deliberate strategy by FCMB to fund ambitious growth plans in Nigeria, through a combination of international debt and equity offerings. In addition, the bank expects to raise over US$1 billion in medium to long-term funding over the next 18 months.
Zain Latif of HSBC, said "HSBC is delighted to have been involved in this landmark and innovative transaction for FCMB. This deal allows FCMB to enter the international capital markets with a bespoke financing structure. We look forward to working with FCMB as it embarks on its ambitious growth strategy for Nigeria and the broader region."
As one of Nigeria’s leading universal banks supplying investment, corporate and consumer services, FCMB plans to use this facility to contribute towards project financing in the real estate and energy sectors, as well as to focus on the expansion of consumer lending. With FCMB’s recent focus on retail finance, a new growth trajectory has been created, making it one of the fastest growing banks in Nigeria in terms of assets, deposits, profitability and customer acquisition.
Following this agreement, FCMB plans to further establish itself as a strong contender in the international market. Managing Director, Mr. Ladi Balogun commented, 'This agreement with HSBC demonstrates a high level of confidence in FCMB by the global investment community, and an understanding of the growth potential we can achieve. We can now further expand our offering in the Nigerian and African markets".
In the past financial year, FCMB has signed agreements totalling US$175 million with long-term, international investors including Helios Investment Partners LLP and Soros Capital.
The clear demonstration of the global investment community’s support and confidence in FCMB and its aggressive growth strategy is expected to ensure that the bank will build strong relationships with these established parties. This will allow them to channel further portfolio investment into the Nigerian economy, focusing particularly in the bonds, structured debt, real estate, mortgage backed securities and equity markets.