Coronation Merchant Bank Limited, a leading investment bank in Nigeria, has recorded a very strong performance in its inaugural Commercial Paper issuance.
The Bank set out to raise the sum of NGN15 billion on the first tranche under its NGN100 billion Commercial Paper Programme. It received commitments of over NGN 28 billion from both Institutional and High Net Worth Investors. This represents over 180% subscription level. The issuance comprised of two series of 180 and 270-days. The 180-day paper was issued at a discount rate of 12.60% and a yield of 13.43% while the 270-day paper was issued at 12.69% discount rate and a yield of 14.00%. According to industry experts, this is an unprecedented achievement in Nigeria’s Capital market especially given the tight pricing on the instruments.
Commenting on the result, Abu Jimoh, Group Managing Director/CEO of Coronation Merchant Bank Limited said that, “we are pleased at the outcome of this exercise. The Commercial Paper issuance, which represents our very first in the market, has enabled us to achieve our objective of effective balance sheet management that is geared towards providing capital to various sectors of the economy. The positive results recorded by our commercial paper is a testament to the strength of the Bank’s credit in the capital markets. It is both gratifying and humbling to note this level of investor confidence in the Bank”.
Abiodun Sanusi, Group Head of Investment Banking at Coronation Merchant Bank stated that, “we started our investment banking business in 2016 and in less than three years, we have contributed immensely to the development of the capital market - both on the equity side and the debt capital side.
He further stated that, “Today, we have differentiated ourselves as a formidable player in the capital market having raised in excess of NGN300 billion for various companies in multiple sectors of the economy. The success of this issuance further demonstrates the market’s confidence in the Coronation Merchant Bank Story.
Coronation Merchant Bank group was established to fill the gap in a long-underserved market segment, seeking to address the need for long term capital across key sectors of the economy. The Group offers investment and corporate banking, private banking/wealth management and global markets/treasury services to its diverse clients. It also offers securities trading/brokerage, asset management and trustees services via its subsidiaries; Coronation Securities Limited, Coronation Asset Management Limited respectively. Driven by its vision of becoming Africa’s premier investment Bank and with an asset base of over NGN130 billion, the Banking group is certain to leverage its privileged position and to become the industry model for risk management, corporate governance and responsible business practices. Coronation Merchant Bank’s quest for industry distinction is evident in its recently unveiled corporate identity which has been designed to communicate the Group’s vision, ambition and inner strength.