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Transaction Case Studies

September 18, 2018 2:22 pm Publications

EMTS – Etisalat Corporation


FBN Capital Limited and Citigroup Global Markets (together “Financial Advisers”) were mandated by EMTS Nigeria to raise $1.2bn to be utilised to (a) refinance its existing $650mm senior debt facility and (b) finance capex needs for its network deployment plan across Nigeria.

The transaction possessed qualities attributable to both project and corporate finance. The Financial Advisers proposed a financing structure comprising 2 tranches ($1bn Naira-denominated & $200mm USD-denominated), 7-year tenor with 3 years of moratorium, and sculpted quarterly repayment.

The Security package included (a) fixed charge over bank accounts and shares in subsidiaries incorporated in Nigeria, (b) assignment of insurance policies, and (c) floating charge over all other assets. The mechanised funding plan also comprised robust financial covenants and restrictions on additional indebtedness and distributions.

Role: Co-Financial Adviser

Nigerian Breweries PLC.


N11.08 billion Series 13-15 Commercial Papers.

Deal Description: 

In 2015, Nigerian Breweries PLC (NB) established its N100 billion CP programme to augment its short-term funding requirement. It represented the largest CP programme to be established by a non-bank corporate at the time. The company issued the Series 13 and 14 CPs in May 2018 and the Series 15 CP in July 2018 raising N1.08billion and N10billion respectively. The issues offered investors attractive yield over reference FGN’s and afforded institutional buyers good credit for portfolio diversification purposes, while supporting the issuers short term funding needs and augmenting it’s working capital.

MIXTA Nigeria


MIXTA NIGERIA N9.83 billion Series 5 Commercial Paper.

Deal Description:

In June 2018, Mixta Real Estate PLC issued N9.83billion Series 5 Commercial Paper under the N10,000,000,000 Commercial Paper Programme. Market timing and appropriate pricing were crucial to the launch of the offer, given expectation of decline in interest rates and investors’ preference for longer tenor instruments. The CP issuance afforded Mixta the opportunity to manage it’s finance cost amidst market volatilities.

UACN Property Development Company PLC.


₦4,355,000,000 16% series 1 senior guaranteed fixed rate bonds due 2023 issued at par.

Deal Description: 

FBNQuest Merchant Bank Limited successfully structured and issued the UACN Property Development Company PLC (UPDC) Series 1 Bond in April 2018. The offer represented the second bond issuance by the company and formed part of the company’s efforts at deleveraging its balance sheet. The transaction was significantly enhanced by a corporate guarantee offered by the issuer’s parent company and two financial institutions. Accordingly, the bond was rated ‘A-’, i.e., seven (7) notches higher than the company’s rating which encouraged subscription by pension funds and asset managers (accounting jointly for 65% of total allotment).

UACN Property Development Company PLC.


N10.66 billion Series 29-31 Commercial Papers.

Deal Description: 

In April 2018, FBNQuest Merchant Bank Limited (“FBNQuest”) acted as Joint arranger and dealer alongside Coronation Merchant Bank for the issuance of the UPDC Series 29-33 Commercial Papers under the N24 billion programme, raising a total of N10.66billion across the 90, 120 and 182 days tenors.