JACKSON, ETTI & EDU ADVISES ON THE FIRST NON-SHARIA ADDITIONAL TIER 1 BOND ISSUANCE IN NIGERIA.

Jackson, Etti & Edu is delighted to have advised the Joint Trustees (FCMB Trustees Limited and ARM Trustees Limited) in connection with the FCMB Group Plc (the “Group”) ₦300 Billion Debt Issuance Programme and the ₦20,686,000,000 Perpetual 16% Fixed Rate Resettable NC5.25 Additional Tier I Capital Subordinated Bonds. Additional Tier 1 Bonds (“AT 1”) are perpetual, capital-qualifying instruments unique for their loss-absorbing features and constitute part of a company’s regulatory capital.

The issuance is notable for being the first domestic non-Sharia local currency AT1 instrument issued in Nigeria and the Group’s maiden issuance of a ₦300 billion funding programme in the Nigerian capital markets. It is expected that the net proceeds from the Series I Bond will be invested in the Group’s Banking Subsidiary – First City Monument Bank Limited (“the Bank”), to enhance the Bank’s Tier 1 and total capital adequacy ratios and enable the Group and the Bank to expand its support for the growth and development of the Nigerian economy.

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