FCMB Capital Markets Limited, the investment banking subsidiary of FCMB Group Plc, has again demonstrated its advisory and capital raising capability by acting as financial adviser and Lead Issuing House on the successful fundraising and listing of LAPO Microfinance Bank Limited’s N3.15 billion bond on the FMDQ OTC platform. The bond, the first ever by a microfinance bank to raise money in Nigeria’s debt capital market, was priced at 17.75% and has a tenor of 5 years. The Issue was rated A- by Agusto& Co and BBB+ by GCR, which are investment grade ratings.
LAPO is a leading Microfinance Bank in Nigeria which commenced operations in 2010. Its banking activities are targeted at micro, small and medium enterprises, particularly women and micro enterprise owners who it provides loans to build their businesses. FCMB Capital Markets acted as the Lead Issuing House on the transaction. As a financial adviser, FCMB Capital Markets was responsible for, amongst others, developing a robust transaction structure that ensures flexibility for the issuer and comfort for the investors, and assisting to obtain regulatory approvals. FCMB Capital Markets is one of the few financial institutions in the country to consistently demonstrate the ability to structure transactions of this nature, having successfully executed similar complex deals previously.
LAPO Microfinance Bank stated that the proceeds will be used to deepen its business in the country, strengthen its capital base, expand its branchless banking solutions and enter new market segments, including the launch of its agency banking model and the deployment of e-business solutions, among others. Speaking during the bond listing ceremony on Tuesday, March 27, 2018 in Lagos, the Executive Director of FCMB Capital Markets Limited, Mr. Tolu Osinibi, said, ‘’we are excited and grateful at having been given the opportunity by LAPO Microfinance Bank to have played a leading role on this landmark transaction, where FCMB Capital Markets acted as financial adviser and the Lead Issuing House on the first ever bond issuance by a microfinance Institution in Nigeria’s capital markets. The success of this transaction speaks to the institutional strength of LAPO and an affirmation of this strength by institutional investors that have trusted LAPO with the funds they manage. Following from the success of its capital markets debut, we at FCMB Capital Markets expect to see LAPO become a repeat issuer, and we also anticipate that this landmark transaction will open up the capital markets to other microfinance institutions that meet the criteria”.
Also speaking, the CEO of LAPO Microfinance Bank, Dr. Godwin Ehigiamusoe, said, ‘’the gap between the demand by micro, small and medium businesses and the little supply is still huge. LAPO Microfinance Bank was only able to deliver loans valued at N135.7 billion in 2017. The capital market remains one of the most viable and affordable options for medium and long term financing for on-lending. We have therefore made a very sound decision. With excellent corporate governance, experienced management, committed staff and extensive footprints across Nigeria, LAPO Microfinance Bank is poised to deliver its core mandate of enhancing financial inclusion. We will continue to enable the under-banked and economically active poor to become active participants in the national economy.’’ FCMB Capital Markets Limited has been involved in several landmark transactions in Nigeria over the past three decades. The firm provides comprehensive advisory services, combining innovative advice and proven execution skills to domestic and multinational clients. Its services include but are not limited to financial advisory, debt and equity capital raising including initial public offerings, mergers and acquisitions, project and structured finance. It has acted as an adviser and arranger of choice to Nigeria’s leading companies and public institutions.
Also, the decision to list the bond on FMDQ is based on the fact that, as a debt-focused securities exchange, FMDQ has shown strong commitment to facilitate growth and development in the financial market through its platform for the registration, listing, quotation and valuation of bonds. The leadership of the exchange continues to run an efficient, transparent and well-regulated market, which attracts and retains both domestic and foreign investors.
Standard Chartered Bank Nigeria officially opened its new branch located in 279, Herbert Macaulay, Yaba, Lagos. The opening of the branch is as a result of the Bank’s strong business growth in Nigeria and its strategic expansion drive in the country. Lagos presents the Bank with tremendous opportunities in a country which is central to our business footprint in Africa. The strength of the Nigerian market has been reflected in our Bank’s business growth which has been exponential.
As part of efforts to identify with the branch community, the bank’s staff took part in the traffic control at Alagomeji junction by assisting the authorities with the control of vehicles at the junction. The community service, which span the whole day, further confirms the bank’s commitment towards delivering its brand promise “Here for Good”.
Bola Adesola, the Managing Director of Standard Chartered Bank, Nigeria said:
“We are quite pleased with the generous support we have received from the Government and people of Nigeria since we commenced business here in 1999. This has been quite encouraging and we fully intend to keep up our side of the bargain by consistently delivering on our brand promise to our customers. We believe this is an auspicious period to capitalize on the extraordinary growth dynamics in the country and the establishment of another branch in Lagos Mainland is a key element in executing the bank’s strategy to grow the business and outperform our competitors. We appreciate the continuous support we have been given by the people of Lagos and we look forward to the growth of our business across all indices in the state.”
New customers of the branch will enjoy the partnership of an International Bank that offers over 100 wealth management packages and other innovative financial solutions such as hassle free personal loans, mortgage loans at competitive rates, Priority Banking, Employee Banking, eSaver, debit and credit cards. The first 100 customers of the branch will also enjoy amazing offers like free movie tickets, instant gifts, free Naira Visa Debit Cards and free International transfer for one month.