CardinalStone’s Debut Commercial Paper Records 148% Subscription

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CardinalStone Partners Limited, one of Nigeria’s leading multi-asset investment management firms has announced that it successfully completed its debut Commercial Paper issuance with a subscription of 148 per cent.

The subscription level, according to a statement, demonstrates investors’ confidence in the company and the ability of its management team to deliver value.

The company had set out to raise N5 billion in the first tranche under its N10 billion Commercial Paper Programme recently registered with FMDQ Securities Exchange Limited.

However, subscriptions totaling N7.1 billion were received from individual and institutional Investors including asset managers, pension fund administrators amongst others.

The Series I 270-day Commercial Paper was issued at an effective yield of 7.0%.

The company’s Group Managing Director/CEO, Mr. Michael Nzewi, was pleased with the overall outcome of the commercial paper issuance.

He indicated that the funds would enable the company to diversify its financing mix and fund its working capital requirements.

“This issuance is expected to consolidate CardinalStone’s position as a credible borrower in the Nigerian capital market while at the same time setting a precedence for commercial paper issuance by a non-bank affiliated financial services business,” Nzewi stated.

FBNQuest Merchant Bank Limited acted as Lead Arranger & Dealer while FCMB Capital Markets Limited and CardinalStone Partners Limited were Joint Arrangers on the debut commercial paper transaction.

CardinalStone was founded in 2008 with the vision to build a world-class investment banking firm of African origin. Over the years, the company has continued to offer an assortment of financial services to a diverse institutional and retail clientele base.