FSDH Merchant Bank Offers N15bn Commercial Paper for Sale in Three Series

April 18, 2023
FSDH Merchant Bank

By Dipo Olowookere

A subsidiary of FSDH Holding Company, FSDH Merchant Bank, is offering for sale commercial paper worth N15 billion.

The corporate debt instrument is being issued under the company’s N40 billion commercial paper issuance programme.

Business Post learned that the lender, authorised to operate by the Central Bank of Nigeria (CBN), is selling the paper in three series of 14, 15 and 16.

The Series 14 has a tenor of 102 days with an implied yield of 12.00 per cent, while the Series 15 has a maturity of 151 days with an implied yield of 12.45 per cent, and the Series 16 has a tenor of 270 days with an implied yield of 13.50 per cent.

Subscription for the CP commenced on Monday, April 17, 2023, and will end on Thursday, April 20, 2023, according to details of the exercise.

The minimum amount to partake in the purchase of the instrument is N5 million, and applicable taxes would be applied on the paper.

The dealer for this transaction is Stanbic IBTC Capital Limited, and the co-dealers are FSDH Capital Limited, FCMB Capital Markets Limited, Rand Merchant Bank Nigeria Limited, and United Capital Plc.

In December 2019, FSDH Merchant Bank launched a N30 billion CP issuance scheme, but the size was increased by N10 billion in June 2021.

In the document for the programme, the issuer intends to list the debts on the trading floor of the FMDQ Securities Exchange to allow for exchange between traders at the secondary market.

The firm noted that “the securities will settle via any central securities depository registered or recognised by the Securities and Exchange Commission (SEC) acting as registrars and clearing agent for the notes.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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