₦airaland Forum

freeman67:
Thanks bro. Yes, the series 7 I did was net of withholding tax.

Chief, is there any guaranteed commercial paper less than 5 mili at all?

Akerewe:
Chief, is there any guaranteed commercial paper less than 5 mili at all?

No most they are usually from 5 Mil. It's only Afrinvest where and when involved that once in a while repackage some for like 1M for their clients.

freeman67:
No most they are usually from 5 Mil. It's only Afrinvest where and when involved that once in a while repackage some for like 1M for their clients.

Ok good, thanks 🙏 but how secured are these cp's?

Akerewe:
Ok good, thanks 🙏 but how secured are these cp's?

Like all investments, it comes with risks. However, you are expected to do your due diligence before investing.

Though, so far, I haven't heard of any but there is a risk of payment default if the issuer faces liquidity issues It's a form of lending without any collateral. You the lender can only rely on the credit worthiness of the company or firm issuing the papers.

That said, CP's are assumed to be relatively safe as the only safer short term debt alternative to it is TB. Also, the arrangers ( The Merchant Bank and Co) marketing it to customers will do their own due diligence to some extent in order not to hurt their brand name. However, the most important due diligence is still your own. The company reports are most times sent with the advert, your can also make your enquiry by searching the web for the outcome of the previous issue of whatever CPs it you intend to invest in etc before making the call.

freeman67:
Like all investments, it comes with risks. However, you are expected to do your due diligence before investing.

Though, so far, I haven't heard of any but there is a risk of payment default if the issuer faces liquidity issues It's a form of lending without any collateral. You the lender can only rely on the credit worthiness of the company or firm issuing the papers.

That said, CP's are assumed to be relatively safe as the only safer short term debt alternative to it is TB. Also, the arrangers ( The Merchant Bank and Co) marketing it to customers will do their own due diligence to some extent in order not to hurt their brand name. However, the most important due diligence is still your own. The company reports are most times sent with the advert, your can also make your enquiry by searching the web for the outcome of the previous issue of whatever CPs it you intend to invest in etc before making the call.

Thanks for the insight chief, I really appreciate🙏

Akerewe:
Chief, is there any guaranteed commercial paper less than 5 mili at all?

Though it's been a while you asked, you can still make use of it if interested.

A Commercial Paper for less than 5 Mill. Infact the of this is 2 mill. So if interested, you can do your due diligence and if convinced hop in.

Arrangers are United Capital (Joint), Stanbic IBTC (Lead), FSL Securities (Joint) and one other.

You can get retail CP's (from 100k) on I-invest by Parthian, Assetbase (Chaka/Risevest), M-36 by Union bank.

You are right. You can get offers from 500k on Trove.

shynzee:
You can get retail CP's (from 100k) on I-invest by Parthian, Assetbase (Chaka/Risevest), M-36 by Union bank.

freeman67:
Though it's been a while you asked, you can still make use of it if interested.

A Commercial Paper for less than 5 Mill. Infact the of this is 2 mill. So if interested, you can do your due diligence and if convinced hop in.

Arrangers are United Capital (Joint), Stanbic IBTC (Lead), FSL Securities (Joint) and one other.

Ok thankd chief, I really appreciate.

freeman67:
Though it's been a while you asked, you can still make use of it if interested.

A Commercial Paper for less than 5 Mill. Infact the of this is 2 mill. So if interested, you can do your due diligence and if convinced hop in.

Arrangers are United Capital (Joint), Stanbic IBTC (Lead), FSL Securities (Joint) and one other.

There is only one arranger in this CP which is United Capital nd more over I think the guaranteed CP is Better

Akerewe:
There is only one arranger in this CP which is United Capital nd more over I think the guaranteed CP is Better

No, you are only seeing the United Capital there because the notice was sent to me by them and of course It's through them I will want other customers to subscribe too because na them value me.

However, there are 3 other arrangers. Infact the main/Lead arranger sef na Stanbic IBTC.

I don't understand what you mean by "the guaranteed CP.

freeman67:
No, you are only seeing the United Capital there because the notice was sent to me by them and of course It's through them I will want other customers to subscribe too because na them value me.

However, there are 3 other arrangers. Infact the main/Lead arranger sef na Stanbic IBTC.

I don't understand what you mean by "the guaranteed CP.

Yes some CP are sponsored/guaranteed by a Commercial bank sometimes

freeman67:
Though it's been a while you asked, you can still make use of it if interested.

A Commercial Paper for less than 5 Mill. Infact the of this is 2 mill. So if interested, you can do your due diligence and if convinced hop in.

Arrangers are United Capital (Joint), Stanbic IBTC (Lead), FSL Securities (Joint) and one other.

The yield when you net tax and fees is not impressive when compared to treasury bills that has little to no risk

ernie4life:
The yield when you net tax and fees is not impressive when compared to treasury bills that has little to no risk

Very true and I understand the angle you are looking at it from which is why I always ask you if the interest is going to be taxed or not.


That said, the major reason why I was attracted to CP's in the first place is that at the I got aware of it rates where better than TB's and they were exempted from taxation.

However, even now that there no longer exempted I still try to lean towards it because:

1. I have never subscribed to CP early and I was told the bank lost the bid that I should wait a fortnight to try again. Once I subscribe as advertised and it is confirmed, the contract stands. For TB severally even with first bank and Stanbic IBTC that were my most preferred.

2. So far, I have never had any experience of delayed payments more than a day. The worse delay in payment I have had is the evening of the due date. Most will come in the morning of that day. About once or twice it came a day earlier. Matured TB before now will either come on the due date, a day after and maybe if it falls on weekend or public holiday, it will paid the next business day. These days, it's payment is likened to the salary of Civil Servant; it is now payed anyhow irrespective of the due date. Same things is happening to Savings Bonds coupon payments.

3. I see it as a way of diversification too. Instead of having all funds in TB, Bonds and co, I diversify my play in money market with CP's.

4. Some banks too now deduct Taxes and crazy charges for TB too and even some investment houses. Reasons why my recent TB play was in the Secondary Market whose rates are still lower.

Looking at the CP I posted, the 180 days tenure is about 26.1% while yesterday's TB is 18.5%. It is still considerable bearing the risk in mind.

freeman67:
Very true and I understand the angle you are looking at it from which is why I always ask you if the interest is going to be taxed or not.


That said, the major reason why I was attracted to CP's in the first place is that at the I got aware of it rates where better than TB's and they were exempted from taxation.

However, even now that there no longer exempted I still try to lean towards it because:

1. I have never subscribed to CP early and I was told the bank lost the bid that I should wait a fortnight to try again. Once I subscribe as advertised and it is confirmed, the contract stands. For TB severally even with first bank and Stanbic IBTC that were my most preferred.

2. So far, I have never had any experience of delayed payments more than a day. The worse delay in payment I have had is the evening of the due date. Most will come in the morning of that day. About once or twice it came a day earlier. Matured TB before now will either come on the due date, a day after and maybe if it falls on weekend or public holiday, it will paid the next business day. These days, it's payment is likened to the salary of Civil Servant; it is now payed anyhow irrespective of the due date. Same things is happening to Savings Bonds coupon payments.

3. I see it as a way of diversification too. Instead of having all funds in TB, Bonds and co, I diversify my play in money market with CP's.

4. Some banks too now deduct Taxes and crazy charges for TB too and even some investment houses. Reasons why my recent TB play was in the Secondary Market whose rates are still lower.

Looking at the CP I posted, the 180 days tenure is about 26.1% while yesterday's TB is 18.5%. It is still considerable bearing the risk in mind.

Your points are valid.


From a risk management standpoint, I am cautious about the surge in companies issuing Commercial Papers (CPs) to raise funds, given the unsecured nature of these instruments.

This increased market activity heightens the likelihood of defaults.

Therefore, I strongly advocate for meticulous selection when investing in CPs

I read in the news that MTN was planning issuance of another Commercial Paper. Do we have anybody who have its details?

opadiya:
I read in the news that MTN was planning issuance of another Commercial Paper. Do we have anybody who have its details?

For now this is the only information I have on the proposed MTN Commercial paper Issuance.

ernie4life:
Your points are valid.


From a risk management standpoint, I am cautious about the surge in companies issuing Commercial Papers (CPs) to raise funds, given the unsecured nature of these instruments.

This increased market activity heightens the likelihood of defaults.

Therefore, I strongly advocate for meticulous selection when investing in CPs

I agree with all you have just said. I truly appreciate.

ernie4life:
For now this is the only information I have on the proposed MTN Commercial paper Issuance.

Many thanks, Sir

Mtn

Can't post, it expires today, was for less than 4 days. 24%/23%

RayRay06677:
Mtn

Can't post, it expires today, was for less than 4 days. 24%/23%

Yield or discount rate?

ernie4life:
Yield or discount rate?

Discount

Meristem Capital Limited is pleased to inform you that the MTN Nigeria Communications PLC (“MTN Nigeria”, or the “Company”) Series 13 and 14 Commercial Paper offer of up to NGN50 Billion under its NGN250 billion Commercial Paper Programme (the “Offer”) is NOW OPEN and scheduled to close on Thursday, 28 November 2024.


Rasaki Salawu rasakisalawu@meristemng.com (08060229889)
David Adu davidadu@meristemng.com (08109404836)
Abdullateef Grillo abdullateefgrillo@meristemng.com (07017735494)
Gloria Ayoola gloriaayoola@meristemng.com (08146111764)
Yinka Adetuberu yinkaadetuberu@meristemng.com (0703719538

0.25% custody fee+ VAT

LOL

Tranglatar:
Meristem Capital Limited is pleased to inform you that the MTN Nigeria Communications PLC (“MTN Nigeria”, or the “Company”) Series 13 and 14 Commercial Paper offer of up to NGN50 Billion under its NGN250 billion Commercial Paper Programme (the “Offer”) is NOW OPEN and scheduled to close on Thursday, 28 November 2024.


Rasaki Salawu rasakisalawu@meristemng.com (08060229889)
David Adu davidadu@meristemng.com (08109404836)
Abdullateef Grillo abdullateefgrillo@meristemng.com (07017735494)
Gloria Ayoola gloriaayoola@meristemng.com (08146111764)
Yinka Adetuberu yinkaadetuberu@meristemng.com (0703719538

Meristem Capital Limited is is pleased to inform you of the launch of Dangote Sugar Refinery PLC’s (“DSR” or the “Company” or the “Issuer”) Series 6 and 7 Commercial Paper offer of up to ₦50 billion under its ₦150bn Commercial Paper Issuance Programme (the “Offer”). The Offer is STILL OPEN and scheduled to close on Thursday, 12 December 2024.

The Company is a subsidiary of Dangote Industries Limited and is engaged in the refining, distributing, and marketing of granulated sugar to wholesalers and top players in the skin care, food and beverage, and pharmaceutical industries. DSR is Sub-Saharan Africa’s largest sugar refinery, with a combined installed refining capacity of 1.49 MMT per annum. In the medium term, the Company is targeting additional 1.5MMT of refined sugar from locally grown sugarcane, and is on track to becoming a leading global integrated sugar producer with its backward integration plan.

Hope the house is aware that VFD group Plc Commercial Paper closes tomorrow with a yield of 30%, heard its net of tax(confirm from your investment house)?

ernie4life:
Hope the house is aware that VFD group Plc Commercial Paper closes tomorrow with a yield of 30%, heard its net of tax(confirm from your investment house)?

Who is trading this one??.

RayRay06677:
Who is trading this one??.

If you tell your financial house am sure they will provide you with more information and can help you buy it.

ernie4life:
If you tell your financial house am sure they will provide you with more information and can help you buy it.

Thanks

Dangote Cement CP is out with a yield of 28.5% to 30%.

Will close by Thursday this week.

ernie4life:
Dangote Cement CP is out with a yield of 28.5% to 30%.

Will close by Thursday this week.

Why is it so difficult for CP investment notice to carry the exact tax & percentage to pay if taxes applies, instead of always writing "applicable taxes shall apply".

Hello house. Please how secure is Precise Lighting Limited CP?