You are here: HomeBusiness2021 07 19Article 458545

Business News of Monday, 19 July 2021


FSDH Merchant Bank floats N23.6b commercial papers

Bank file photo Bank file photo

FSDH Merchant Bank (FSDH MB) Limited has launched three tranches of commercial papers to raise about N23.6 billion with yields ranging from 8.74 per cent to about 12.75 per cent.

FSDH MB, a subsidiary of FSDH Holding Company Limited, is offering Series 3, Series 4 and Series 5 of its commercial paper issuance, under its N40 billion commercial paper programme.

Under Series 3, FSDH MB is offering 116-day commercial paper with an implied yield of 8.7360 per cent and a discount yield of 8.5000 per cent.

Series 4 is a 188-day issuance with an implied yield of 11.1003 per cent and a discount yield of 10.5000 per cent.

The net proceeds of the issuances will be used to fund short-term working capital requirements and for general corporate purposes

Under Series 5; the wholesale bank is offering 270-day papers with an implied yield of 12.7487 per cent and a discount yield of 11.6500 per cent.

The maturity dates for the three issuances are Tuesday, November 16, 2021; Thursday, January 27, 2022, and Tuesday, April 19, 2022.

The bank is rated A by Agusto and A- by Global Credit Rating.

The minimum subscription to the issuances is N5 million and thereafter in multiples of N1, 000. Notably, the commercial papers are free of withholding taxes

The application list for the issuances will close on Wednesday, July 21 2021 with the funding date slated at Friday, July 2 2021

FSDH Holding Company Limited is a private limited liability company duly licensed by the Central Bank of Nigeria to carry on services offered by commercial banks and services that can only be offered by merchant banks in Nigeria.

Afrinvest described FSDH MB  as a well-recognised brand and “A” rated entity that has consistently delivered strong financial performance, with its asset base and shareholders’ funds at N159.44 billion and N30.81 billion respectively, as of December 31, 2020.

FSDH Merchant Bank Limited, formerly First Securities Discount House Limited, was one of the first merchant banks to be awarded a merchant banking licence in Nigeria following the repeal of Universal Banking in 2010. FSDH was incorporated in 1992 as First Securities Discount House Limited. It commenced operations in 1993 as a discount house with its core competence being the issuance and trading of Financial Securities. In November 2012, FSDH obtained approval from the CBN to operate as a merchant bank and officially changed its name from First Securities Discount House Limited to FSDH Merchant Bank Limited in December 2012. FSDH commenced its merchant banking operations in January 2013.

FSDH provides a one-stop-shop for financial services in Nigeria as it offers corporate and investment banking and wealth management services to its clientele.

These include asset management, fixed income and foreign currency trading, equities trading, wealth management, corporate banking and other investment banking services which it offers through the bank and its three independently managed subsidiaries: FSDH Asset Management Limited, FSDH Securities Limited and PAL Pensions Limited.