FCMB has issued a fresh N30 billion worth of commercial paper, as part of its N100 billion CP issuance programme.
By
Chidi Emenike
First City Monument Bank has announced the issuance of a commercial
paper worth N30 billion, as part of its efforts to generate additional
source of short-term funds for the bank.
The disclosure was signed by FCMB Group’s secretary, Olufunmilayo Adedibu, and sent to the Nigerian Stock Exchange, as seen by Nairametrics
- The Commercial Paper (CP) has a tenor of 260 days and is part of a
larger effort by the bank to raise a total of N100 billion through its
CP issuance programme.
What they are saying
A part of the notification sent to NSE reads:
- A part of the notification sent to NSE reads: “FCMB Group Plc
(“FCMB”) hereby notifies the Nigerian Stock Exchange (“NSE”) and its
esteemed shareholders that one of its subsidiaries, First City Monument
Bank Limited (the Bank) is undertaking a Commercial Paper Issuance
(“CP”) under its N100 billion-naira CP programme.”
What you should know
- FCMB had earlier in March 2020 issued a N20 billion worth of commercial paper as reported
by Nairametrics. In lieu of this, the latest notice raises the total
sum of Commercial Paper issuance by the bank to N50 billion, out of its
benchmark target of N100 billion.
- In a similar vein, Nairametrics also reported
that Dangote Cement, MTN, Nigeria Breweries and 9 other firms raised a
total sum of N478.4 billion from commercial paper issuance between
January and September, 2020.
- According to Investopedia, Commercial paper is a type of unsecured,
short-term debt instrument, issued by corporations to meet its
short-term liabilities. It is unsecured because it is usually not backed
by any form of collateral.
- Commercial papers are usually targeted at institutional investors,
such as Pension Fund Administrators and non-pension asset managers. Some
high net-worth investors are also eligible to apply.
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