• Wednesday, July 17, 2024
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Coronation Group eyes N8bn from Series 1 & 2 Commercial Papers issuance

Coronation Group eyes N8bn from Series 1 & 2 Commercial Papers issuance

The ongoing Series 1 and 2 Commercial Papers (CPs) issuance by Coronation Group Limited is still open till Friday May 10.

The CPs issuance of up to N8 billion is under its N20 billion Commercial Paper programme.
The net proceeds of the Series 1 and 2 Commercial Papers: 180-day Series 1 {19.83052 percent discount rate and yield of 22 percent} and 270-day Series 2 {21.81436 percent discount rate and yield of 26 percent} will be used solely to support Coronation Group Limited short term funding requirements.

Coronation Group Limited established the N20billion Commercial Paper Issuance Programme, under which Coronation Group may from time-to-time issue Commercial Paper Notes, denominated in Naira as may be agreed between the Issuer and each relevant Dealer and or the Arranger, in separate series or tranches subject to the terms and conditions contained in this Programme Memorandum.

The repayment of all obligations under the Programme will be funded from the operating cash flows of the Coronation Group Limited unless otherwise specified in the Applicable Pricing Supplement.

In January 2024, Agusto & Co upgraded the rating of Coronation Group Limited to ‘Bbb’. The rating was supported by improvements in the Company’s cash flow position, satisfactory profitability, very low leverage, and a qualified and experienced management team. The rating as however impaired by ownership concentration and familial relationships on the board of directors.

In March 2024, GCR Ratings (GCR) assigned Coronation Group Limited initial national scale long and short-term ratings of BBB+(NG) and A2(NG) respectively, with an Evolving Outlook.

GCR Ratings said the ratings assigned to Coronation Group Limited reflect the strengths and weaknesses of its six subsidiaries: Coronation Asset management Limited, Coronation Securities Limited, Coronation Registrars Limited, Coronation Trustees Limited, Coronation Capital Limited and Trium Limited, collectively referred to the Group. “The ratings balance a diversified ecosystem, strong operating cashflows buoyed by earnings retention and a net ungeared balance sheet, a moderate risk profile and strong liquidity against a concentrated revenue base and an evolving franchise.

“Over the next six to nine months, CGL plans to complete the acquisition of an affiliate entity within the ecosystem: Coronation Insurance Plc, which could make the insurance business a major operating entity within the Group going forward, contributing significantly to total assets and revenues. Therefore, an evolving outlook has been attached to the long-term issuer rating to recognise possible changes in our assessment subsequently,” GCR Ratings said.

Coronation Group Limited is a leading African Financial Markets Holding Company headquartered in Lagos Nigeria.

As the holding company, it provides strategic oversight to a diverse portfolio of companies operating within the Financial Services sector. Coronation Group was duly licensed by the Securities and Exchange Commission, Nigeria as a Capital Market Holding Company (CMHC) in March 2023.

Under the holding company structure, Coronation Group Limited is the parent company of 6 subsidiaries namely Coronation Asset Management, Coronation Capital, Coronation Securities, Coronation Trustees, Coronation Registrars and Trium.