CardinalStone's Debut Commercial Paper Issuance Records 148% Subscription


Monday, August 31, 2020 08.50AM / CardinalStone / Header Image Credit: FMDQ

Proshare Nigeria Pvt. Ltd.

CardinalStone Partners Limited, one of Nigeria's leading multi-asset investment management firms, successfully completed its debut Commercial Paper issuance with a subscription of 148%. This impressive subscription level demonstrates investors' confidence in the company and the ability of its management team to deliver value.

The company had set out to raise N5 billion in the first tranche under its N10 billion Commercial Paper Programme recently registered with FMDQ Securities Exchange Limited. However, subscriptions totalling N7.1 billion were received from individual and institutional Investors including asset managers, pension fund administrators amongst others.


The Series I 270-day Commercial Paper was issued at an effective yield of 7.0%.


The company's Group Managing Director/CEO, Mr Michael Nzewi, was pleased with the overall outcome of the Commercial Paper Issuance. He indicated that the funds from the Commercial Paper Issuance would enable the company to diversify its financing mix and fund its working capital requirements.


"This issuance is expected to consolidate CardinalStone's position as a credible borrower in the Nigerian capital market while at the same time setting a precedence for commercial paper issuance by a non-bank affiliated financial services business", Mr Nzewi stated.


FBNQuest Merchant Bank Limited acted as Lead Arranger & Dealer while FCMB Capital Markets Limited and CardinalStone Partners Limited were Joint Arrangers on the debut commercial paper transaction.


CardinalStone was founded in 2008 with the vision to build a world-class investment banking firm of African origin. Over the years, the company has continued to offer an assortment of financial services to a diverse institutional and retail clientele base.


In addition to investment banking, CardinalStone also offers securities trading, asset management, registrar services and consumer finance via its subsidiaries namely CardinalStone Securities Limited, CardinalStone Asset Management Limited, CardinalStone Registrars Limited and CS Advance Finance Company respectively.


Related News from CardinalStone


1.      CardinalStone Partners Limited Offering 7.0% Yield on Its 270-Day Commercial Paper


Proshare Nigeria Pvt. Ltd.


Related News

1.      NSE Lists 9.80% FGN JUL 2045 Bonds Issued in July 2020

2.     Treasury Bill Auction Holds Wednesday August 26th, 2020

3.     Bond Yields Push Higher as GDP Weakens By 6.10% YoY

4.     Mild Bullish Performance as Average Yield Dips 7bps to 1.5%; PMA to Hold on Wednesday

5.     A Decent Auction Outcome for the DMO in August 2020

6.     TSL SPV Plc - Up to N12bn Series 1 Infrastructure Bonds Guaranteed by InfraCredit Now Open

7.     DMO Steadies Rate Expectation at Monthly FGN Bond Auction by Cutting Volumes Sold to Drop Stop Rates

8.     Summary of FGN Bond Auction Results for August 2020

9.     Demand for OMO Bills Dropped Rate Especially for Shorter-Dated Bills

10.  Fixed Income Markets Again Shrug Off Rising Inflation Ahead of Monthly FGN Bond Auction

11.   NT-Bills Yields Further Pressured as System Liquidity Improves, PMA Oversubscribed

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News