Sterling Bank Issues N35b Commercial Papers

By Dipo Olowookere

The management of Sterling Bank Plc has announced the issuance of about N35 billion commercial papers (CP) to boost its operations in the country.

The mid-tier bank, in a statement to the Nigerian Stock Exchange (NSE) today, said the exercise was under its N100 billion CP programme launched on December 13, 2016.

In the statement obtained by Business Post from the website of the stock exchange, the financial institution explained that it issued the N35 billion papers in Series 6 and Series 7.

While the Series 6 CP was issued for a tenor of 177 days at a yield of 13.6300 percent, the Series 7 CP was issued for a 268 days tenor at a yield of 13.9699 percent.

“The proceeds of the CPS are intended to boost the working capital financing needs of the bank,” Sterling Bank said.

The lender further said “the CP offers were targeted at institutional investors such as pension and non-pension asset managers, as well as eligible high net worth investors.”

“The arrangers of the CP Programme and issues under the Programme are Constant Capital and Stanbic IBTC Capital Limited,” it added.

“Following the closure of the offer, the bids are currently being collated and the results of the offer are expected to be announced before the scheduled commencement date of Tuesday August 7, 2018,” the statement concluded.

Business Post gathered that the exercise opened on Tuesday, July 31, 2018, and ended on Friday, August 2, 2018.