The FMDQ Securities Exchange Ltd., has approved the listing of FSDH Funding SPV Plc N7.05 billion tranche A and N4.95 billion tranche B series 1 fixed rate bonds on its platform.
FSDH Funding SPV Plc is a special purpose vehicle set up to raise capital from the Nigerian debt capital market for FSDH Merchant Bank Limited.
The Director, FSDH Funding SPV Plc, Mr Adekunle Awojobi, said this in a statement on Tuesday in Lagos.
Awojobi said the bonds were under the company’s N30 billion debt issuance programme.
He noted that the bonds were approved by the FMDQ Exchange board Listings and Markets Committee.
Awojobi said: “We are pleased about the successful N12 billion capital-raise under the FSDH Funding SPV Plc’s N30 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.
“The listing of the bonds on FMDQ’s platform will help provide visibility and enhance the liquidity of the bonds,” he said.
Awojobi said the net proceeds of the bond issue would be used to fund the growth of risk assets of the sponsor, FSDH Merchant Bank Ltd.
“A portion of the bond issuance will serve the dual purpose of shoring up the bank’s Tier 2 capital, in line with its internal capital sdequacy assessment process,” Awojobi added.
He commended Union Capital Markets Ltd for facilitating the listing of the bonds and the issuing houses, Stanbic IBTC Capital Limited, FSDH Capital Ltd., Rand Merchant Bank and United Capital Plv for their support in ensuring the successful capital raise.
Also speaking, Mr Egie Akpata, Director, Union Capital Markets Ltd., lauded the successful listing of the bonds on FMDQ Exchange.
“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 Ltd was instrumental in the successful listing of the bonds and thank the board and management of FSDH Merchant Bank Ltd for the opportunity to work with them,” he said.
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