Coronation Merchant Bank’s N15 billion commercial paper gets 180% subscription

Coronation Merchant Bank Limited has recorded a very strong performance in its inaugural Commercial Paper issuance worth N15 billion, with a 180 per cent subscription level.The N15 billion offer, which is the first tranche, under its N100 billion Commercial Paper programme, received a total of about N28 billion commitments from both institutional and high net-worth investors, an indication of trust and confidence in the bank’s operations.

The issuance comprised of two series of 180 and 270-days, with 180-day paper issued at a discount rate of 12.6 per cent and a yield of 13.43 per cent, while the 270-day paper was issued at 12.69 per cent discount rate and a yield of 14 per cent.The Group Managing Director/Chief Executive Officer of Coronation Merchant Bank, Abu Jimoh, said: “We are pleased at the outcome of this exercise. The Commercial Paper issuance, which represents our very first in the market, has enabled us to achieve our objective of effective balance sheet management that is geared towards providing capital to various sectors of the economy.

“The positive results recorded by our commercial paper is a testament to the strength of the Bank’s credit in the capital markets. It is both gratifying and humbling to note this level of investor confidence in the Bank”.

The Group Head of Investment Banking at Coronation Merchant Bank, Abiodun Sanusi, added: “We started our investment banking business in 2016 and in less than three years, we have contributed immensely to the development of the capital market, both on the equity side and the debt capital side.“Today, we have differentiated ourselves as a formidable player in the capital market having raised in excess of NGN300 billion for various companies in multiple sectors of the economy. The success of this issuance further demonstrates the market’s confidence in the Coronation Merchant Bank Story.”

According to the bank, its emergence was to fill the gap in a long-underserved market segment, seeking to address the need for long term capital across key sectors of the economy.The Group offers investment and corporate banking, private banking/wealth management and global markets/treasury services to its diverse clients. It also offers securities trading/brokerage, asset management and trustees services through its subsidiaries; Coronation Securities Limited, Coronation Asset Management Limited respectively.

Meanwhile, the Chief Risk Officer of the bank, Magnus Nnoka, has been elected President of the Risk Managers Association of Nigeria (RIMAN)at the 18th yearly international conference and general meeting of the association, which took place in Lagos. Now in its 18th year, RIMAN has been at the fore front of promoting best practices and advocacy in risk management and related disciplines in Nigeria.

The organisation provides distinct and value-added services through its pool of industry experts and seasoned professionals and also sets national standard in professional designation with the Certified Risk Manager certification through the association’s on-going structured examination programme and Mandatory Continuing Professional Education.In his acceptance speech, he stated that RIMAN, under his leadership, will remain committed to spearheading risk management advocacy and capacity building activities beyond the financial services sector.

He promised to lead a team that would sustain a risk-aware business environment and working closely with various regulatory agencies and stakeholders.While recognising the enormous task of leading the association in the current global and national risk environment, he believes that the strong risk culture existing at Coronation Merchant Bank, a leading investment bank in Nigeria and the pool of experienced professionals at RIMAN, would serve as strong pillars in carrying out the tasks of the office.Prior to his election  as President of RIMAN, Magnus has been on the Executive Council of the association for over a decade and served at various times as Second Vice President and First Vice President.

He has also chaired prominent governance committees like the training and membership. Nnoka brings to the association’s presidency a very rich experience in the banking sector, spanning over two decades and cutting across banks and core areas of Treasury, Branch Management/Operations and Enterprise Risk Management.