TrustBanc Holdings Limited has opened its Series 1 and 2 commercial paper issuances, targeting up to ₦20 billion under its newly established ₦100 billion Commercial Paper Issuance Programme, as Nigeria’s debt capital market continues to attract institutional and high-net-worth investors seeking fixed-income returns in an elevated interest-rate environment.

The offer, which opened on Thursday, March 12, 2026, is scheduled to close on Monday, March 23, offering investors short-term, unsecured debt instruments with maturities typically ranging from 90 to 270 days.

The issuance represents TrustBanc’s latest effort to diversify funding sources, reduce the cost of capital, and finance the growing portfolio of assets within its integrated financial services group.

Commercial papers are short-term, unsecured debt instruments issued by corporations to raise working capital. They typically mature within 270 days and are sold at a discount to face value, with the difference representing the investor’s return.

In Nigeria’s current high-interest-rate environment, with the Monetary Policy Rate at 27 per cent, commercial papers have become an attractive alternative to longer-term bonds, offering competitive yields with lower duration risk.

For issuers, commercial paper provides a cheaper and more flexible source of short-term funding than bank loans. For investors, they offer higher yields than traditional savings accounts or money market funds, with relatively low credit risk when issued by established corporations with strong track records.

The minimum subscription for TrustBanc’s issuance is typically ₦5 million with increments of ₦1,000 thereafter, positioning the product primarily for institutional investors, asset managers, pension funds, and high-net-worth individuals rather than retail savers.

TrustBanc has built a credible track record in Nigeria’s commercial paper market. Under its existing conventional CP programme, the group has successfully raised over ₦39.8 billion since inception, with ₦35.5 billion repaid at maturity, a repayment rate that has cemented its position as a leading non-bank financial services provider in the debt capital market.

The company’s consistent ability to redeem its commercial papers at maturity has been highlighted by dealers and institutional investors as a key factor driving continued confidence in TrustBanc as a counterparty.

Director at UCML Capital Limited, Egie Akpata, previously described TrustBanc’s repayment discipline as confirmation that the firm is “a trustworthy counterparty” in the market.

Group Chief Executive Officer Abu Jimoh, CFA, has consistently described each successful issuance as “a strategic milestone” in the company’s bid to establish TrustBanc as a leading financial services provider in Nigeria, noting that diversified funding sources are critical to accelerating business growth and executing the group’s strategy.

TrustBanc’s ₦100 billion CP programme includes both conventional interest-bearing instruments and Sharia-compliant non-interest commercial papers, reflecting the company’s strategic positioning in both conventional and ethical finance markets.

In September 2024, FMDQ Securities Exchange approved TrustBanc’s groundbreaking ₦20 billion Non-Interest Commercial Paper Programme, structured through Sultiva Wakalah SPV Limited using the Al-Wakalah Bi Al-Istithmar (Investment Agency Structure).

The non-interest programme marks a significant milestone for Nigeria’s financial services industry, offering Sharia-compliant investors an ethical and innovative alternative that aligns with global best practices in non-interest finance. Coronation Merchant Bank Limited serves as financial adviser and lead arranger for the non-interest programme.

For institutional and high-net-worth investors evaluating TrustBanc’s commercial paper, several factors warrant consideration. First, credit risk: commercial paper is unsecured, meaning it ranks pari passu with other unsecured creditors in the event of default.

TrustBanc is rated A- by DataPro Limited, indicating adequate creditworthiness but not the highest investment grade. Investors should assess whether the yield compensates adequately for the credit risk.

Second, liquidity: commercial paper is less liquid than equities or government securities. While they can be traded on FMDQ Securities Exchange, secondary market liquidity may be limited, meaning investors should generally plan to hold to maturity.

Third, interest rate risk: although commercial papers have short maturities, investors should consider interest rate trends. If the Central Bank of Nigeria begins cutting rates in the second half of 2026 as inflation moderates, yields on newly issued CPs may decline, making current issuances relatively attractive.

Conversely, if rates remain elevated or rise further, yields could improve for future issues.

TrustBanc’s ability to repay depends on the financial health of its operating subsidiaries, TrustBanc J6 Microfinance Bank, TrustBanc Asset Management Limited, and TrustBanc Capital Management Limited. Investors should review the group’s financial statements, asset quality, and growth trajectory to assess repayment capacity.

TrustBanc’s issuance comes amid a surge in commercial paper activity across Nigeria’s debt capital market. In December 2024, three major companies, Dangote Sugar Refinery, Dangote Cement, and Lagos Free Zone Company, collectively raised ₦110.93 billion through CP issuances, reflecting corporate Nigeria’s growing reliance on capital markets rather than banks for short-term funding.

The shift is driven by several factors: banks have tightened lending amid credit risk concerns and are parking ₦336 trillion at the CBN’s Standing Deposit Facility rather than lending to businesses; capital markets offer more competitive pricing and flexible tenors; and institutional investors are flush with cash seeking yield in an environment where Treasury Bills and OMO instruments offer rates above 20 per cent.

The TrustBanc Series 1 and 2 issuance closes on March 23, with settlement expected shortly thereafter. Investors interested in participating should contact the issuing houses and dealers handling the transaction, which, based on historical TrustBanc issuances, typically include UCML Capital Limited, United Capital Plc, and Emerging Africa Group.

The proceeds from the issuance will be deployed to finance TrustBanc’s growing portfolio of assets, support working capital requirements, and fund the group’s expansion plans across wealth management, asset management, microfinance, and securities trading.

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