Dipo Olowookere
By Dipo Olowookere
FSDH Merchant Bank Limited is currently selling the series 6 and 7 of its commercial paper and it plans to raise about N20 billion from the exercise.
Business Post gathered that subscription for the corporate debt instrument commenced on Wednesday, January 26, 2022, and will end on Monday, January 31, 2022.
The exercise is under the financial institution’s N40 billion commercial paper programme issuance, which would be used to finance the company’s short-term working capital requirements and general corporate purposes.
According to details of the sales, the series 6 is with 181-day maturity with a discount rate of 9.00 per cent and an implied yield of 9.42 per cent, while the series 7 is a 268-day tenor with a discount rate of 9.75 per cent and an implied yield of 10.50 per cent.
FSDH Merchant Bank is the subsidiary of FSDH Holding Company Limited. It operates as a private limited liability company duly licenced by the Central Bank of Nigeria (CBN) to carry on merchant banking activities in the country.
The firm said investors can subscribe to the papers as they are free and clear of withholding taxes, though the minimum subscription is N5 million, with multiples of N1,000 thereafter.
A look into the books of the lender indicated that its liquidity profile is above-average as its liquid assets accounted for about 60 per cent of its total assets in the 2021 financial year.
However, in the accounting year, the gross earnings fell year-on-year by 15.48 per cent to N13.79 billion, with interest income contributing about 80 per cent to the revenue.
