By Dipo Olowookere
Leading African investment banking, asset management, trusteeship and securities trading company, United Capital Plc, has completed the sale of its Series 1 and 2 commercial paper issuance.
The papers, worth N5.3 billion, were sold by the provider of a bouquet of diverse financial services to individuals, companies and governments under its N20 billion programme registered with the FMDQ Securities Exchange.
According to the firm, the debt instruments were offered across two tenors; 182 days and 270 days, with the longer maturity preferred by investors based on the subscription level.
It was disclosed that bids were received from both individual and institutional investors, who used the opportunity to invest in the company’s investment tool.
The Group CEO of United Capital, Mr Peter Ashade, who expressed excitement over the exercise, stated that, “The Series 1 and 2 issuances, with tenors of 182 days and 270 days, were largely subscribed to by individual and institutional investors, with interest significantly tilted towards the 270-day offering.”
He explained that, “The commercial paper issuance will enable us provide a wider range of wholesale financing solutions to our clients.”
Speaking further, he said the commercial paper sale “will also further complement our stable funding base and support the growth of our overall business.”
Business Post recalled that at its Annual General Meeting (AGM) in March 2018, shareholders of United Capital authorised the board to raise the sum of N20 billion from commercial paper issuance.
The aim was to help the organisation provide innovative financing solutions to its corporate, institutional and government (parastatals, sovereign and sub-sovereigns) clients.
Since its establishment over 50 years ago, United Capital has cultivated and sustained a heritage of excellence in the finance space in Africa by providing top-of-the-line financial services across the continent.
The company said it has the ambition to leverage on technology to better empower its clients with bespoke financial partnerships, while maintaining a commitment to economic growth and prosperity on the continent by supporting financial inclusion.
