First City Monument Bank issues commercial paper worth N30 billion

[OmoAlaji]

FCMB has issued a fresh N30 billion worth of commercial paper, as part of its N100 billion CP issuance program.


This is shocking news by First City Monument. What do you guys think about this stuff? It seems like they are all running out of money and now they want to be raising fund from the public market.

We have been following them a lot and follow their stock. What do you think guys?

 

[OmoAlaji]

• A part of the notification sent to NSE reads: “FCMB Group Plc (“FCMB”) hereby notifies the Nigerian Stock Exchange (“NSE”) and its esteemed shareholders that one of its subsidiaries, First City Monument Bank Limited (the Bank) is undertaking a Commercial Paper Issuance (“CP”) under its N100 billion-naira CP programme.”

• FCMB had earlier in March 2020 issued a N20 billion worth of commercial paper as reported by Nairametrics. In lieu of this, the latest notice raises the total sum of Commercial Paper issuance by the bank to N50 billion, out of its benchmark target of N100 billion.
• In a similar vein, Nairametrics also reported that Dangote Cement, MTN, Nigeria Breweries and 9 other firms raised a total sum of N478.4 billion from commercial paper issuance between January and September, 2020.
• According to Investopedia, Commercial paper is a type of unsecured, short-term debt instrument, issued by corporations to meet its short-term liabilities. It is unsecured because it is usually not backed by any form of collateral.
• Commercial papers are usually targeted at institutional investors, such as Pension Fund Administrators and non-pension asset managers. Some high net-worth investors are