The loan will help the bank boost its interest earning capacity in the 2014 operating year.
The unaudited nine months results of the bank ending September 30, 2013 showed that the bank earned N41bn net interest income, and net interest margin of 7.8 per cent , which translated to 7.8 kobo interest on every N1 of loan granted.
Announcing the loan deal, the bank in a statement said, “Commerzbank Aktiengesellschaft and Standard Chartered Bank, acting as Initial Mandated Lead Arrangers and Book-runners, have disclosed the successful signing of a $ 150m Senior Unsecured Term Loan Facility for FCMB Limited.
“The agreement was signed recently and represents First City Monument Bank’s largest fundraising to date in the commercial bank syndicated loan market.”
According to the statement, the facility, which was pre-funded by Commerzbank Aktiengesellschaft and Standard Chartered Bank, was launched at $100m and subsequently increased following a highly successful general syndication phase.
It explained that proceeds of the facility will be used for general lending purposes and Standard Chartered Bank is acting as facility agent.
The statement quoted the Deputy Managing Director of FCMB, Mr. Segun Odusanya, as saying that the successful conclusion, oversubscription and the number of international financial institutions that participated in the loan syndication indicates the level of confidence which the international banking community have in FCMB and the Nigerian market as a whole”.
“The proceeds of the fund raising will be used to support medium term lending to key sectors of the economy such as power, oil and gas upstream , manufacturing and agribusiness in line with the bank’s commitment to supporting the critical areas to the success of the Nigerian economy”, he added.
The unaudited nine months results of the bank ending September 30, 2013 showed that the bank earned N41bn net interest income, and net interest margin of 7.8 per cent , which translated to 7.8 kobo interest on every N1 of loan granted.
Announcing the loan deal, the bank in a statement said, “Commerzbank Aktiengesellschaft and Standard Chartered Bank, acting as Initial Mandated Lead Arrangers and Book-runners, have disclosed the successful signing of a $ 150m Senior Unsecured Term Loan Facility for FCMB Limited.
“The agreement was signed recently and represents First City Monument Bank’s largest fundraising to date in the commercial bank syndicated loan market.”
According to the statement, the facility, which was pre-funded by Commerzbank Aktiengesellschaft and Standard Chartered Bank, was launched at $100m and subsequently increased following a highly successful general syndication phase.
It explained that proceeds of the facility will be used for general lending purposes and Standard Chartered Bank is acting as facility agent.
The statement quoted the Deputy Managing Director of FCMB, Mr. Segun Odusanya, as saying that the successful conclusion, oversubscription and the number of international financial institutions that participated in the loan syndication indicates the level of confidence which the international banking community have in FCMB and the Nigerian market as a whole”.
“The proceeds of the fund raising will be used to support medium term lending to key sectors of the economy such as power, oil and gas upstream , manufacturing and agribusiness in line with the bank’s commitment to supporting the critical areas to the success of the Nigerian economy”, he added.
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