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FCMB postpones issuance of its recently announced Commercial Paper worth N30 billion

The issuance was suspended due to the Nigerian Treasury Bills auction of December 9, 2020, which distorted price discovery.

First City Monument Bank Limited, a subsidiary of the FCMB Group Plc, has announced the suspension in the issuance of its recently announced commercial paper worth N30 billion.

This is according to a disclosure signed by the Company’s secretary, Mrs. Olufunmilayo Adedibu, and sent to the Nigerian Stock Exchange market today.

FCMB had earlier announced its intentions to issue a fresh N30billion worth of commercial paper, as part of its N100 billion commercial paper issuance programme.

Why the suspension?

According to the press release made available, the issuance was suspended due to the Nigerian Treasury Bills auction of December 9, 2020, which distorted price discovery.

What they are saying

A part of the recent press release reads:

  • “FCMB Group Plc (“FCMB”) hereby notifies the Nigerian Stock Exchange (“NSE”) and its esteemed shareholders that the proposed Commercial Paper Issuance (“CP”) by one of its subsidiaries, First City Monument Bank Limited (the “Bank”) has been suspended.”

What you should know

  • According to investopedia, price discovery is the overall process, whether explicit or inferred, of setting the spot price or the proper price of an asset, security, commodity, or currency. The process of price discovery looks at a number of tangible and intangible factors, including supply and demand, investor risk attitudes, and the overall economic and geopolitical environment.

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