FCMB Capital Markets Limited, the investment banking subsidiary of FCMB Group Plc, has acted as financial adviser and lead issuing house on the successful fundraising and listing of LAPO Microfinance Bank Limited’s N3.15bn bond on the FMDQ OTC platform.
The bond, the first ever by a microfinance bank to raise money in Nigeria’s debt capital market, was priced at 17.75 per cent and has a tenor of five years.
The issue was rated A- by Agusto& Co and BBB+ by GCR, which are investment grade ratings, according to a statement by the lender.
LAPO, a leading microfinance bank in Nigeria, commenced operations in 2010. Its banking activities are targeted at the Micro, Small and Medium-scale Enterprises, particularly women and micro enterprise owners who it provides loans to build their businesses.
In a statement, the lender said, “FCMB Capital Markets acted as the Lead Issuing House on the transaction. As a financial adviser, FCMB Capital Markets 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.”
LAPO Microfinance Bank was quoted as stating that the proceeds would be used to deepen its business in the country, strengthen its capital base, expand its branchless banking solutions and enter new market segments, including the launch of its agency banking model and the deployment of e-business solutions, among others.