The N5 billion commercial paper notes, Series 1 and Series 2 of Afrinvest (West Africa) Limited’s N25 billion commercial paper issuance program, are now available for purchase. The commercial paper notes Series 1 is meant to have a 180 days tenor, with 16.5% yield rate, while the Series 2 will be having a 270 days tenor, with 18% yield rate.
Moreover, the company placed the minimum subscription of the commercial paper notes to be N1 million, with multiples of N1000 thereafter. FMDQ Exchange would be the platform to trade the commercial papers, in which the deadline is being set to be on Wednesday, 24th of January, 2024.
In 2024, Nigerian companies have released approximately N90 billion in commercial papers, aligning with the N1.5 trillion worth of commercial papers issued in the preceding year. The Afrinvest Series 1 and 2 CPs stand out with yield rates of 16.5% and 18%, surpassing the yields on Treasury Bills issued by the CBN on January 10, 2024, which recorded rates of 2.44%, 4.22%, and 8.399% for the 91-day, 182-day, and 364-day bills respectively.
Commercial papers are short-term debt instruments just like treasury bills. However, private corporations, companies, and financial institutions issue commercial papers, to raise money for short-term funding needs, while the government issues treasury bills.
