Stanbic IBTC Bank Plc has offered an approved commercial papers worth N15 billion to capital market investors.
The commercial paper is sold by the lender in the sixth tranche of its N100 billion multi-currency commercial paper programme approved by regulators.
The sale of the corporate debt instrument commenced on Tuesday, April 25, 2023, and will end today, Thursday, April 27, 2023.
According to the company, which is a subsidiary of Stanbic IBTC Holdings Plc, proceeds of the exercise will be used to finance the issuer’s short-term funding needs.
The Stanbic IBTC Bank Series VI issuance has a tenor of 270 days and an implied yield of 13.00 per cent.
The minimum subscription for the commercial papers is N5 million and in multiples of N1 million thereafter.
Stanbic IBTC Bank is a mid-level financial institution in Nigeria. It is among the most preferred banks used by offshore investors for capital repatriation.
The company sells its stocks on the floor of the Nigerian Exchange (NGX) Limited, and its financial performance, especially last year, has increased investor confidence in the firm.
Stanbic IBTC improved its net profit in the 2022 fiscal year by 41.85 per cent to N80.81 billion despite the economic headwinds it faced in the year.
Its balance sheet, which had 79.23 per cent in liquid assets, stood at N3.03 trillion, giving investors confidence that the lender would be able to meet its short-term obligations, including the repayment of debt it is seeking from them.