How price discovery in NTB market forces FCMB to suspend proposed N30bn CP
The management of FCMB Group Plc has announced the bank subsidiary, First City Monument Bank Limited suspension of its proposed issuance of Commercial Paper (CP) that is up to N30 billion.
The company secretary, FCMB Group, Mrs Olufunmilayo Adedibu in a statement said, “FCMB hereby notifies the Nigerian Stock Exchange (NSE) and its esteemed shareholders that the proposed CP Issuance by one of its subsidiaries, First City Monument Bank Limited has been suspended.
“This is as a result of the Nigerian Treasury Bills auction of Wednesday, 9 December 2020, which distorted price discovery.”
FCMB Group Plc had announced last week that it had issued a CP worth N30 billion, as part of the company’s efforts to generate an additional source of short-term funds.
The CP has a tenor of 260 days and is part of a larger effort by the financial institution to raise a total of N100 billion through its CP issuance program.
Note that FCMB Group had earlier in March 2020 issued a N20 billion CP.
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.
About The Author
