FCMB Capital Markets facilitates N3.15 billion bond listing for LAPO Microfinance Bank
By Chijioke Nelson
FCMB Capital Markets Limited has facilitated a successful fundraising and listing of LAPO Microfinance Bank Limited’s N3.15 billion bond on the FMDQ OTC platform.
The feat by the investment banking subsidiary of FCMB Group demonstrated its advisory and capital raising capability by acting as financial adviser and Lead Issuing House on the exercise.
Meanwhile, LAPO Microfinance has said it was able to deliver only N135.7 billion loans in 2017, in a market it assessed the gap between the demand by micro, small and medium businesses and the supply as still huge.
The bond, which is the first ever by a microfinance bank to raise money in Nigeria’s debt capital market, was priced at 17.75 percent, with five-year tenor and rated A- by Agusto & Co and BBB+ by GCR.
FCMB Capital Markets, as a financial adviser, was responsible for, among others, developing a robust transaction structure that ensures flexibility for the issuer and comfort for the investors and assisting to obtain regulatory approvals.