FCMB to raise $300 million to boost consumer lending – Balogun

First City Monument Bank (FCMB) plans to raise about $300 million of funding this year to boost consumer lending and may consider issuing Eurobonds.

Chief Executive Officer, Ladi Balogun, however, said the bank would only issue the debt instrument if market conditions are favorable.

“Our preferred source of funding has been the loan markets as opposed to bond markets due to more stable pricing,” Balogun  said in a Bloomberg report. “We will probably get to about 40 percent of our loan book being personal lending.”

FCMB plans to increase its loan book by about 20 percent to N540 billion ($3.3 billion) this year, as it joins other Nigerian lenders in raising debt to boost credit to consumers and fund infrastructure.

“The bank is targeting a return on equity of 15 percent this year and 20 percent in 2016 compared with 13 percent in 2013,” Balogun said. “FCMB plans to increase its customers to 4 million by 2016 from 2.5 million.”