Coronation Merchant Bank seeks N15b short-term capital

The Nation | May 26, 2020

Coronation Merchant Bank Limited is seeking to raise up to N15 billion in short-term capital through the issuance of commercial papers (CPs).

Coronation Merchant Bank is offering Series 9 and 10 under its N100 billion commercial paper (CP) issuance programme. Application lists for the two offers opened on May 22, 2020 and will close on Friday May 29, 2020.

The wholesale is offering 179-day CP with effective yield of 6.2500 per cent and a discount rate of 6.0646 per cent under its Ninth series. The 10th series CP is a 270-day instrument with effective and discount yield of 7.2500 per cent and 6.8817 per cent.

Minimum subscription for the two offers is N5 million and thereafter in multiples of N1,000. The CPs, which are not subjected to withholding taxes, would be allotted on May 22, after the closure of the application list. Settlement date is June 1.

The net proceeds of the new issues would be used to support the bank’s short-term funding requirements.

Licensed by the Central Bank of Nigeria as a merchant bank, Coronation Merchant Bank has grown with asset base and shareholders’ funds at N253.4 billion and N34.6 billion respectively, as at last December 31.

The bank has A+ rating from Agusto & Co and A- rating from Global Credit Rating (GCR).