CORONATION Merchant Bank Limited, a leading investment bank in Nigeria, has recorded a very strong performance in its inaugural Commercial Paper (CP) issuance.
The bank set out to raise the sum of N15 billion on the first tranche under its N100 billion Commercial Paper Programme. It received commitments of over N 28 billion from both institutional and high net worth investors. This represents over 180 per cent subscription level.
The issuance comprised of two series of 180- and 270-days. The 180-day paper was issued at a discount rate of 12.60 per cent and a yield of 13.43 per cent while the 270-day paper was issued at 12.69 per cent discount rate and a yield of 14.00 per cent.
From left, Chief Operating Officer (COO), Onome Komolafe; Managing Director/CEO, Abubakar Jimoh; Head, Capital Markets, Aigbovbioise Aig-Imoukhuede and Onayimi Aiwerioghene, Head, Enterprise Management, all of Coronation Merchant Bank, during the brand identity unveiling of the bank, held at Coronation House in Lagos, recently.
According to industry experts, this is an unprecedented achievement in Nigeria’s capital market especially given the tight pricing on the instruments.
Commenting on the result, Abu Jimoh, Group Managing Director/CEO of Coronation Merchant Bank Limited said that, “We are pleased at the outcome of this exercise. The Commercial Paper issuance, which represents our very first in the market, has enabled us to achieve our objective of effective balance sheet management that is geared towards providing capital to various sectors of the economy.