FBNQuest Supports Growth of CPs Issuances in Nigeria

FBNQuest, the investment banking and asset management group of FBN Holdings Plc has said that it has continued to demonstrate its support towards the growth of commercial paper issuances in Nigeria through its successful delivery of several debt transactions for corporates.

The Nigerian Debt Capital Market in recent years has seen a resurgence in Commercial Papers (CP) issuances and a total of approximately N1 trillion in value of commercial papers was issued in 2020 alone.

FBNQuest said it has played a pivotal role in reinitiating the Commercial Paper market for non-bank issuers leading seven institutions to establish Commercial Paper programmes in the past few years.

It stated, “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. On record, it has arranged public commercial paper 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. Commercial Paper 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..”

Speaking on the organisation’s support and active involvement in the growth of CP transactions, , Group Executive – Head Investment Banking and Operations, FBNQuest Merchant Bank, Patrick Mgbenwelu stated, ‘’Our aim is to consistently provide extraordinary value and bespoke solutions for our stakeholders and foster development in the Nigerian financial markets at large.”