‘Commercial paper good for short-term financing’

The Commercial Paper issuance programme has been described as another veritable tool for private sector operators to raise short-term funds at cheaper costs in the country.

Besides, it has emerged as the beginning of potential opportunities that are capable of spurring institutional growth and the development of the economy as a whole.

The chief executives of Standard Chartered Capital and Advisory Nigeria Limited and Guinness Nigeria, who were unanimous in the assertions, said they would continue to make use of the window in the nation’s capital market for investments’ growth.

Standard Chartered Capital and Advisory had recently sponsored the listing of N10 billion Series II and III Commercial Paper issuance for Guinness Nigeria on the FMDQ OTC Securities Exchange, a licensed over-the-counter market operator for fixed income securities.

The listing involved the issuance of combined N10 billion worth of 182-day Series II and 268-day Series III issues.

The Chief Executive Officer of Standard Chartered Capital and Advisory Nigeria, Leke Ogunlewe, said: “Standard Chartered is proud to have sponsored this Commercial Paper listing on FMDQ OTC for Guinness Nigeria Plc. The listing follows the successful issuance of the Series 2 and 3 transactions in November and should herald improved liquidity for both instruments.

“We believe this is the beginning of many more opportunities to support institutional growth for our clients and the continuous development of the economy at large. This is clearly in line with our commitment to be ‘here for good’”.

But the Managing Director/Chief Executive Officer of Guinness Nigeria, Peter Ndegwa, added: “We are very pleased with the successful quoting of this Commercial Paper issuance for Guinness Nigeria Plc and the support received from FMDQ OTC and our advisors to enable this.

“The quoting of this CP has allowed us successfully diversify our short term funding sources at a reduced cost whilst delivering value to our shareholders.”