Greenwich Merchant Bank mulls plan to raise N10bn from Commercial Paper

Greenwich Merchant Bank Limited has considered plans to raise the sum of N10 billion from the sale of commercial paper.

According to documents seen by BusinessDay, Greenwich Merchant bank intends to use the proceeds of the issue to support its short-term funding needs as part of its working capital management strategy.

The Naira-denominated corporate debt instrument is being issued to investors in the Nigerian capital market under the company’s N100 billion commercial paper programme.

In the details of the exercise, Greenwich Merchant Bank is selling the commercial paper in Series 1 and 2, and subscription commenced on Wednesday, March 1 and will end on Thursday, March 9, 2023.

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Series 1 of the note has a tenor of 179 days, with a discount rate of 12.22 per cent and a yield of 13.00 per cent, while Series 2 has a maturity of 270 days, with a discount rate of 12.69 per cent and a yield of 14.00 per cent.

Interested investors are required by the company to pay N5 million as the minimum subscription.

Greenwich Merchant Bank has three operating segments: corporate banking, investment banking, and treasury. Its three main income streams are trading income, interest income, and fees and commission.

In the 2021 fiscal year, the company had a balance sheet of N86.19 billion, of which 97.28 per cent was held in liquid assets, sufficient to cover its short-term obligations, indicating that the organisation should be able to settle its obligations, including debt repayment.