FBNQuest acts as lead issuing house, book runner on Interswitch N23bn bonds listing

FBNQuest, the investment banking and asset management subsidiary of FBN Holdings Plc successfully led a consortium of five issuing houses on the recent listing of the Interswitch Limited’s bond on the Nigerian Stock Exchange. Interswitch Limited in its bid for expansion has set the ball rolling for Fintechs in Nigeria through the issuance of bonds on the Nigerian Stock Exchange.

FBNQuest Merchant Bank in its role as lead issuing house assisted the client in arranging, structuring and issuing the Series 1 Bond out of the Bond Issuance Programme launched in May 2019.  As Joint Lead Issuing house/book runner, FBNQuest advised on the transaction structure and marketing strategy for the bonds including market timing, investor road show (in Lagos and Abuja) and crafting an appropriate credit story for the client.

The Bonds were successfully distributed to a diversified mix of investors which included Pension Fund Administrators (PFAs), Banks, Asset Managers and Others. The final order book was N51billion out of which a total of N23billion bids were accepted meaning the offer was 222percent subscribed. The success of the transaction with an order book of 222percent is a testament to the leading role of the company in the technology and payment processing space where they have consistently led innovation and product development. FBNQuest is proud to have led this milestone transaction.

The transaction adds to the organisations impressive portfolio of organisations it has supported, and once again highlights its capabilities in the successful execution of sizeable capital market and commercial debt transactions.

Speaking on the transaction, Patrick Mgbenwelu, Head, Investment Banking, FBNQuest Merchant Bank stated, “We are pleased to have advised Interswitch Limited on the bond listing on the Nigerian Stock Exchange. As a full service investment bank, we advised on the bond issuance, structure, and also leveraged our extensive distribution capability to successfully distribute the transaction”.

He further stated that FBNQuest Securities also played a vital role by acting as the Stockbrokers to the listing of the first bond issue by a Fintech to be listed on the Nigerian Stock Exchange.

Interswitch Limited is a leading technology-driven company with a focus on the digitalization of payments in Nigeria and other African countries.  The listing ceremony took place on Friday, January 31, 2020.

As a leading investment banking institution, FBNQuest has advised on the issuance of several other commercial papers for organisations such as Mixta Real Estate plc, Dangote Cement Plc, Nigerian Breweries Plc (NB), Lafarge Africa Plc, Flour Mills of Nigeria Plc (FMN), Wema Bank Plc, and UACN Property Development Company Plc (UPDC) to mention a few.