TrustBanc raises N3bn from commercial paper

TrustBanc Holdings Limited, the parent company of three financial service firms, said it has raised N3.02 billion from its series 5 Commercial Paper (CP) issued on January 27, 2022. In a statement on Thursday, it said the 180-day CP was issued at a discount of 12.2 per cent, noting that the transaction, which is under […]

TrustBanc Holdings Limited, the parent company of three financial service firms, said it has raised N3.02 billion from its series 5 Commercial Paper (CP) issued on January 27, 2022.

In a statement on Thursday, it said the 180-day CP was issued at a discount of 12.2 per cent, noting that the transaction, which is under TrustBanc’s N10bn CP programme listed on FMDQ, recorded 264% subscription.

The total bids received in the order book at the close of the offer were N7.96bn, amounting to N4.94bn over the targeted N3.02bn.

Commenting on this, the company’s Chief Executive Officer, Mr Abu Jimoh, described it as a strategic milestone in its bid to establish TrustBanc as a leading financial service provider in Nigeria.

He said: “To come into the market in the same week Stanbic and FSDH were in the market, and for the market to be willing to give us more than what we asked for illustrates investors’ heightened confidence in our strategy, performance, and solid credit profile.”

UCML Capital Limited, United Capital Plc and Emerging Africa Group acted as dealers on the transaction. Speaking on behalf of the dealers, Director at UCML Capital Limited, Mr Egie Akpata, said: “The level of oversubscription of the issue indicates widespread acceptance by institutional investors of TrustBanc Holdings as an issuer of choice.”

Esther Chukwu