FCMB Plans ₦7.5b Tier-II Debt Issue

Nigerian bank FCMB plans to raise 7.5 billion naira ($25 million) in so-called Tier-II supplementary debt by year-end to strengthen its capital base, it said on Friday.

The bank had said in August it will raise between 10 to 15 billion naira of Tier II capital, targeting retail investors for the offering.

On Friday FCMB also posted a rise in pre-tax profits to 14.18 billion naira in the first nine months of the year, up from 2.56 billion naira in the same period last year.

The bank intended to be cautious on increasing its lending and would focus on smaller ticket loans to farmers and small businesses, management said in a presentation to analysts.

FCMB, like several Nigerian lenders are having to adapt their business models at short notice after the slump in crude prices since mid-2014 put pressure on the once lucrative oil and gas loan book.

Nigeria is facing its worst recession in 25 years, brought on by the fall in oil prices.