Coronation Merchant Bank Limited has issued and quoted a N25 billion Series 1 and 2 Commercial Paper under its N100 Commercial Paper programme. The proceeds from this programme would be channelled towards meeting the bank’s short-term working capital requirements.
The Issuance will be across 182 and 269-day tenors for a target amount of up to N25 billion. The company’s issuer ratings are B- (Fitch), A+ (Agusto), A- (GCR).
This was contained in a notice sent out to investors and the minimum subscription for interested investors is N5 million and multiples of N1,000 thereafter. Investors are to fund their commitments by April 25, 2022.
What you should know
- The issuer of the commercial paper is Coronation Merchant bank Limited.
- The tenor of the commercial paper is 182 and 269 days.
- The yield for the investment is pegged at 8.25% and 9.00%, for the respective tenors.
- Withholding tax at 10% shall apply on interest component upon maturity.
- The offer opened on April 14, 2022, and closes on April 22, 2022.
- 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.