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Guinness Nigeria Lists NGN10 billion Commercial Paper

Guinness Nigeria Plc has said in a statement that it will list two Commercial Paper Issues on the Financial Market Dealers Quotation (FMDQ) OTC Securities Exchange.  These are the N7.23 billion  182 days Series 2 and N2.77 billion 268 days Series 3 Commercial Papers. The planned listing is following the successful issuance of the Commercial Papers in November 2015.

Rotimi Odusote, Company Secretary of Guinness Nigeria Limited in the statement said that Standard Chartered Bank acted as Issuing Agent while Stanbic IBTC Capital Limited and Standard Chartered Capital & Advisory Nigeria Limited acted as Joint Arrangers on the Issuance of the Commercial Paper last year.  "Our decision to list the notes on the FMDQ is to increase the visibility which will in turn lead to increased demand for future issuesm", Odusote Said.

Guinness Nigeria Plc is the first non-financial institution to establish a CP programme following the guidelines on Commercial Paper published by the Central Bank of Nigeria in 2009.  Generally considered as low cost alternative to bank loans and favoured by big, usually rated AA corporations to raise working capita, Commercial Papers are unsecured promissory note issued by large and credible institutions to borrow money from the investing public for a short period of time, usually ranging from less than 30 days to a period not exceeding one year.

With the establishment of Fmdq Otc Securities Exchange, there now exist a secondary market for Commercial Paper where people who bought the paper at the initial Issuance from the primary market, usually the banks, can trade the paper for immediate liquidity before the maturity date.  This means that the investor holding the paper at the date of maturity benefits from the redemption.

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This post first appeared on Stock Market Information | Investment Tips| Perso, please read the originial post: here

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Guinness Nigeria Lists NGN10 billion Commercial Paper

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