FBNQuest, the investment banking and asset management group of FBN Holdings PLC, has continued to demonstrate its support towards the growth of Commercial Paper (CP) issuances in Nigeria through the organisation’s successful delivery of several debt transactions for corporates.
The Nigerian Debt Capital Market in recent years has seen a resurgence in CP issuances and a total of approximately N1 trillion in value of CP was issued in 2020 alone.
“Our aim is to consistently provide extraordinary value and bespoke solutions for our stakeholders and foster development in the Nigerian financial markets at large. FBNQuest will continue to strengthen and expand our expertise to demonstrate the most advanced and innovative, yet simple structures in the Debt Capital Markets industry,” said Patrick Mgbenwelu, group executive – head investment banking and operations, FBNQuest Merchant Bank in a statement.
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“We remain committed to delivering value-added investment banking solutions to corporates, subnationals and the Federal Government, leveraging our strong distributions platform and proven track record for raising funds for capital expenditure and expansion projects across diverse industries and the public sector” he added.
FBNQuest has played a pivotal role in reinitiating the CP market for non-bank issuers, leading seven institutions to establish CP programmes in the past few years.
FBNQuest continues to rely on its deep sector expertise and structuring skills to execute and close the most complicated financings across all key sectors of the Nigerian economy.
It has arranged public CP issuances worth up to N400 billion for large institutions. The firm also introduced the use of a Liquidity Support Facility (LSF) structure for the UPDC Plc. CP transaction, a feature which enhanced the instrument’s credit with a rating of ‘A-’, and was six notches higher than the Issuer’s rating on the merit of the LSF providers.
As a full-service investment bank, FBNQuest has played an essential role in several CP deals for clients such as Dangote Cement Plc., MTN Nigeria Communications PLC, Nigerian Breweries PLC, and other notable companies.
The organisation’s continuous success at brokering some of the record-high value CP transactions in Nigeria has attracted both local and international recognition which is validated by several accolades received by FBNQuest such as: “Deal of the Year – Equity” by the African Banker Awards; “Investment Bank of the Year” by BusinessDay Banks and other Financial Institutions” amongst others.
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