- RMB Nigeria Unveils N80bn Commercial Paper
Rand Merchant Bank Nigeria Limited has received approval from FMDQ OTC Securities Exchange to register its N80bn commercial paper programme on the FMDQ platform.
The programme is a debut for RMB Nigeria as an issuer in the Nigerian money markets, and will form an integral part of the bank’s funding strategy as it provides an avenue to successfully diversify its short-term funding sources, thereby delivering value to its shareholders.
This programme positions RMB Nigeria to easily and quickly raise short-term finance from the debt market.
The formal signing of the deal was conducted in Lagos, and officials of FMDQ as well as the joint lead arrangers, Standard Chartered Bank, Rand Merchant Bank Nigeria and Stanbic IBTC Capital, and law firms, Aluko & Oyebode and Banwo & Ighodalo, were in attendance.
RMB Nigeria said it would issue several series of the CPs under the programme with a wide range of maturities, which should offer investors a variety of investment outlets while also providing the bank with more flexibility to meet the various funding demands of its growing client franchise.
The CPs issued, it added, would also present investors with the benefit of capital security, portfolio diversification and competitive returns. All issuances will be quoted on the FMDQ OTC Exchange.
RMB Nigeria, a member of the FirstRand Group, is an African corporate and investment bank and part of one of the largest financial services groups in Africa. The bank is rated A by both Global Credit Rating Company and Agusto & Co, reflecting the good asset quality, strong capitalisation and good liquidity profile.
The bank, which offers clients innovative advisory, capital markets, financing and principal investing solutions, has funded various infrastructure, real estate resources, acquisitions and development projects in over 35 African countries in the past decade.
The projects range from ports, dams and energy installations, to mines, railways and factories.
The bank established a representative office in Nigeria in 2010 and opened a fully-fledged merchant bank in early 2013.
