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MTN leads as Nigerian companies raise N233.32bn on commercial papers in H1 2021



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In the first six months of the year, Nigerian companies have raised a total of N233.32 billion in commercial papers.

Commercial paper is a commonly used type of unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities.

Maturities on commercial paper typically last several days, and rarely range longer than 270 days. They are usually issued at a discount.

According to FMDQ securities data, the amount issued by businesses in the first half of this year is already greater than the N80.1 billion raised in 2020.

Market observers have also predicted that this year’s total would exceed the N467.6 billion raised in 2019.

According to them, the low-yield environment is highly appealing for companies since it will allow them to obtain cash at a discount in order to sustain their operations and perhaps expand their activities.

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Breakdown of the amount raised include Nigerian Breweries, (N3.61 billion), Dufil Prima (N20.1 billion), Coronation (N51.54 billion) and Fidson healthcare (N4.50 billion)

MTN Nigeria floated N73.51 billion commercial papers while Parthian Partners Limited issued N20 billion.

Others are FBN Quest, (N7.34 billion); Valency Agro Nigeria, (N5.10 billion); while Mixa Real Estate, (N9.84billion).

Parthian Partners Limited (N20 billion), TrustBanc Holdings Limited (N0.20 billion), Union Bank of Nigeria (N34.97 billion), Stanbic IBTC Bank (0.08 billion), and United Capital (N2.53 billion).

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