FCMB has concluded a land mark transaction with the successful conclusion of the $100 million privately placed unlisted GDR. The GDR issue was fully subscribed to by notable International Investors from continental Europe, the United Kingdom, the United Arab Emirates and South Africa. The transaction represents a fraction of the over $400 million of international orders received by the bank during its recently concluded public offer. Indications are that the combined equity offerings ($100 million GDR and $500 million public offer on the Nigerian Stock Exchange) have been heavily oversubscribed with many international investors, including those already invested in FCMB, participating substantially in the offer. Domestic applications are likely to take total orders close to US$1 billion mark. The anticipated success of the offer is a further endorsement of the bank’s growth story and that of the Nigerian financial markets and economy. This GDR issue represents the first time in Nigeria financial markets that GDR investors can freely repatriate capital, under a new free-flowing GDR settlement procedure, jointly designed by the Central Bank of Nigeria and FCMB. FCMB also designed a separate allotment route for the approval of the GDRs by the SEC, which increased the confidence of the International Investors to participate in the placement despite the current turmoil in the International Capital Markets.

Ladi Balogun, MD/CEO of FCMB said, “The GDR placement is part of the bank’s continued commitment to diversifying its shareholder base and funding its rapidly growing business. The fact that we were able to record such a high level of international orders under very challenging international market conditions demonstrates the robustness of the FCMB story and performance, our financial markets and the economy. Many global investors now see the Nigerian capital markets as a refuge in the midst of global turmoil.”
Ayoleke Adu, Group Head, Project and Structured Finance, added that, “the proceeds of the GDR will be deployed into high yield investments in the fast growing sectors of the Nigerian economy.”  As one of Nigeria’s fastest growing banks, FCMB remains focused on expanding its Project Finance, Investment Banking & Consumer Finance businesses, while strengthening its leadership of the Corporate and Commercial Banking segments.

Licensed in 1982, FCMB was the first bank established in Nigeria without government or foreign support. The bank enjoyed unparalleled success as a merchant bank and was one of the top two banks of its kind in Nigeria. One of its earliest landmark achievements was the completion of the first public loan syndication for the then National Fertilizer Company of Nigeria (NAFCON) in 1986, the largest at the time.
After 18 years of unbroken success as a merchant bank, FCMB converted to a universal bank in 2001. In December 2004, FCMB PLC shares were listed on the Nigerian Stock Exchange (NSE) officially joining the elite group of publicly quoted companies in Nigeria. Between 2004 and 2005, the bank successfully raised additional capital in excess of N20 billion through private and public offerings to exponentially grow its business and expand its physical and virtual presence.

FCMB, through its wholly owned subsidiary, FCMB Capital Markets Limited, is the current holder of the Euromoney Excellence Award for the Best Investment Bank in Nigeria, and has received the prestigious Thisday Award for the “Stock Offer of The Year” in 2005, an acknowledgement of the success of its capital raising activities in a highly competitive period in the industry. In 2000 and 2001, FCMB Capital Markets won the Reuters/SBA Research Mergers & Acquisition Award as the leader in Mergers & Acquisition in Nigeria. FCMB also won the trophy for most consistent issuing house in Nigeria and have an impressive A+/A1 rating from Global Credit Ratings, Africa’s premier rating agency. The banks focus today is in consumer banking and investment banking, whist also offering corporate and commercial banking products and services.