TrustBanc Holdings Limited (TrustBanc) has said it successfully closed its series 5 Commercial Paper (CP) issue for a total amount of N3.02 billion on January 27, 2022. The 180-day CP was issued at a discount of 12.2168 per cent.

The transaction, which is under TrustBanc’s N10 billionn CP programme listed on FMDQ, achieved a total subscription of 264%. The total bids received in the order book at the close of the offer was N7.96bn, amounting to N4.94bn over the sum of N3.02 billion targeted under the series.

While commenting on the successful issuance, the company’s Chief Executive Officer, Mr Abu Jimoh, CFA, 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. In addition, the net proceeds from the issuance will further diversify our sources of funding as we continue to accelerate business growth and drive our strategy.”

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.”

Since the registration of the Programme 10 months ago, the company has continued to see active and growing participation from the market, demonstrating continued investor confidence in TrustBanc and its growth trajectory. In addition, two series with a total face value of N1.9bn have matured under the N10 billion programme, and TrustBanc successfully paid back each of the series in full at maturity.

“I want to thank all institutional investors who contributed to the success of all the series under our debut N10 billion programme. We look forward to the same warm reception as we engage with the market under our upcoming N50 billion programme. Thank you again for your continued confidence in TrustBanc.” Abu Jimoh, CFA.