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FCMB signs $150million loan deal with Commerzbank, others

By on January 9, 2014

First City Monument Bank(FCMB) Limited has signed a $150m senior unsecured term loan deal with Commerzbank Aktiengesellschaft and Standard Chartered Bank.

According to the bank, the agreement represented its largest fundraising in the commercial bank syndicated loan market till date.

The deal, which was said to have been pre-funded by Commerzbank Aktiengesellschaft and Standard Chartered Bank, was inaugurated at $100m and subsequently increased following a highly successful general syndication phase.

The proceeds of the facility, according to the bank is for general lending purposes while Standard Chartered Bank will act as a facility agent.

In his comment on the deal, FCMB’s Deputy Managing Director, Mr. Segun Odusanya, disclosed that “the successful conclusion, over-subscription and the number of international financial institutions that participated in the loan syndication indicated the level of confidence which the international banking community had in the bank and the Nigerian market as a whole”.

Odusanya added that the proceeds of the loan deal will be used to support medium term lending to key sectors of the economy such as power, oil and gas upstream , manufacturing and agriculture.

This he said is in line with the bank’s commitment to supporting the critical areas to the success of the Nigerian economy.