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Sterling Bank commences N30bn Commercial Paper programme

Sterling Bank has announced plans to raise up to N30 billion in its series 1&2 commercial paper program. The series 1 &2 are with a tenor of 177 and 260 days respectively, with an effective yield  of 7.5percent and 8percent while the discount rate stands at 7.23percent and 7.56percent respectively.
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Proceeds from the Commercial Paper program would be used for its short term working capital requirements,
A commercial paper is an unsecured, short term debt instrument issued by a corporate typically for financing of accounts payable, inventories and short-term liabilities.
According to the bank, the offer opened on Wednesday 25 March and would close on Monday 30th March 2020.
The bank has a long term rating of BBB from Global Credit Rating (GCR) and a  BBB+ rating from DataPro Limited. Also, a short term rating of A3 from CGR and A2 form DataPro.
Sterling Bank joins the list of corporates taking advantage of low-interest rates to raise cheaper short term debt.

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