Rand Merchant Bank launches ₦80bn Commercial Paper programme

by | June 19, 2017 12:33 am

Rand Merchant Bank (RMB) Nigeria has received approval from FMDQ OTC Securities Exchange to register its N80 billion Commercial Paper (CP) 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 recently. Officials of FMDQ, as well as the joint issuing houses, Stanbic IBTC Capital and Standard Chartered Bank, and law firms Aluko & Oyebode and Banwo & Ighodalo, were in attendance.

RMB Nigeria will issue a series of 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 will 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 a leading African corporate and investment bank and part of one of the largest financial services groups in Africa. The bank is rated ‘A’ by both leading emerging market ratings agency, Global Credit Rating Co and local credit ratings agency Agusto & Co, reflecting the good asset quality, strong capitalisation and good liquidity profile.

The bank offers clients innovative advisory, capital markets, financing and principal investing solutions. RMB Nigeria has funded various infrastructure, real estate resources, acquisitions and development projects in over 35 African countries in the past decade.

These range from ports, dams and energy installations, to mines, railways and factories,  making it one of the leading investment banking partners on the continent.

The bank established a representative office in Nigeria in 2010 and opened a fully-fledged merchant bank in early 2013.