TrustBanc Holdings Limited (TrustBanc), the parent company of three regulated financial services companies, has announced that its series 5 Commercial Paper (CP) issue for a total of N3.02 billion was successfully closed on January 27, 2022.
The 180-day CP was issued at a 12.2168% discount.
The transaction, which is part of TrustBanc’s N10bn CP programme and is listed on FMDQ, received a 264 percent total subscription. The total bids received in the order book at the close of the offer were N7.96 billion, which was N4.94 billion more than the N3.02 billion targeted under the series.
The company’s chief executive officer, Abu Jimoh, described the successful issuance as a strategic milestone in TrustBanc’s bid to establish itself as a leading financial institution.
“…coming into the market in the same week Stanbic and FSDH were in the market, and the market being willing to give us more than what we asked for, demonstrates investors’ heightened confidence in our strategy, performance, and solid credit profile,” he said. Furthermore, the net proceeds from the issuance will diversify our funding sources as we continue to accelerate business growth and drive our strategy.”
Dealers on the transaction included UCML Capital Limited, United Capital Plc, and Emerging Africa Group. Mr. Egie Akpata, director at UCML Capital Limited, spoke on behalf of the dealers, saying, “The level of oversubscription of the issue indicates widespread acceptance by institutional investors of TrustBanc Holdings as an issuer of choice.”
Since registering the Programme ten months ago, the company has seen active and growing market participation, demonstrating continued investor confidence in TrustBanc and its growth trajectory. Furthermore, under the N10 billion program, two series with a total face value of N1.9 billion matured, and TrustBanc successfully paid back each series in full at maturity.
“I would like to thank all institutional investors who contributed to the success of all the series under our inaugural N10 billion program.” We anticipate receiving the same warm welcome when we engage with the market as part of our upcoming N50 billion program. Thank you for your continued trust in TrustBanc.” CFA Abu Jimoh.
TrustBanc was formed as a holding company in order to streamline the operations of TrustBanc Financial Group. The group is comprised of TrustBanc and its subsidiaries, TrustBanc Asset Management Limited, TrustBanc Capital Management Limited, and TrustBanc J6 MFB Limited.
The Group is growing into an integrated financial services conglomerate, offering solutions in wealth management, funds, investment management, securities trading, savings, and lending.
The group’s broad range of services ensures a bespoke solution to clients and is based in Victoria Island, Lagos. Its digital and accessible services include microloans, business financing, investment advice, and wealth preservation advice.