By Omodele Adigun

TrustBanc Holdings Limited (TrustBanc), the parent company of three regulated financial services companies, has said it successfully closed its series 5 Commercial Paper (CP) issue for N3.02 billion on January 27, 2022. The 180-day CP was issued at a discount of 12.2168 per cent.

The transaction, which is under TrustBanc’s N10 billion CP programme listed on FMDQ, achieved a total subscription of 264per cent. The total bids received in the order book at the close of the offer was N7.96bn, amounting to N4.94bn over the sum of N3.02 billion targeted under the series.

While commenting on the successful issuance, the company’s Chief Executive Officer, Mr Abu Jimoh, described it as a strategic milestone in its bid to establish TrustBanc as a leading financial service provider in Nigeria.

He said: “To come into the market in the same week Stanbic and FSDH were in the market, and for the market to be willing to give us more than what we asked for illustrates investors’ heightened confidence in our strategy, performance, and solid credit profile. In addition, the net proceeds from the issuance will further diversify our sources of funding as we continue to accelerate business growth and drive our strategy.”

UCML Capital Limited, United Capital Plc and Emerging Africa Group, acted as dealers on the transaction. Speaking on behalf of the dealers, Director at UCML Capital Limited, Mr. Egie Akpata, said: “The level of oversubscription of the issue indicates widespread acceptance by institutional investors of TrustBanc Holdings as an issuer of choice.”

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Since the registration of the programme 10 months ago, the company has continued to see active and growing participation from the market, demonstrating continued investor confidence in TrustBanc and its growth trajectory. In addition, two series with a total face value of N1.9bn have matured under the N10 billion programme, and TrustBanc successfully paid back each of the series in full at maturity.

“I want to thank all institutional investors who contributed to the success of all the series under our debut N10 billion programme. We look forward to the same warm reception as we engage the market with our upcoming increased programme size. Thank you again for your continued confidence in TrustBanc,” Jimoh said.

TrustBanc was incorporated as a holding company to synergise the operations of TrustBanc Financial Group. TrustBanc along with its subsidiaries, namely, TrustBanc Asset Management Limited, TrustBanc Capital Management Limited, and TrustBanc J6 MFB Limited, make up the group.

The Group is expanding to become an integrated financial services conglomerate with solutions covering wealth management, funds, investments management, securities trading, savings, and lending.

Located in Victoria Island, Lagos, the group’s broad range of services ensure a bespoke solution to clients. Its services, which are accessible and digital, cover micro loans, business financing, investment advisory, or advice on the preservation of wealth.