FCMB suspends its Commercial Papers due to price distortion
First City Monument Bank (FCMB) Plc has suspended its planned capital raiser of about N30 billion in short-term debt capital through the issuance of Commercial Papers (CPs).
It could be recalled that the bank recently announced that First City Monument Bank Limited, one of its subsidiaries, would be undertaking a Commercial Paper Issuance under its N100 billion-naira CP programme.
In a regulatory filing signed by Olufunmilayo Adedibu, company secretary, FCMB, said it was suspending the CP issuance due to recent price distortion in the market.
“This is as a result of the Nigerian Treasury Bills auction of Wednesday, December 9, 2020, which distorted price discovery,” FCMB stated.
On the earlier plan, the Commercial Paper is said to have a tenor of 260 days with the aim of raising up to N30 billion to support the bank’s short-term funding needs which is to serve as its additional funding source.
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