South African bank, Rand Merchant bank has listed an N80 billion commercial paper programme on the FMDQ platform. Commercial papers are unsecured short-term securities issued by a firm to settle liabilities. Stanbic IBTC, last week listed a N20 billion CP programme.
First quarter 2017 GDP data released by the National Bureau of Statistics (NBS) this week show the economy contracted by 0.52%. The country slipped into recession last year due to a sharp fall in crude oil prices.
The bank raising short-term funding could be a sign of an uptick in industrial activities in the country. Some analysts have posited that the economy may be out of recession by the second quarter of 2017.
The funds could be for onward lending to industries that need capital. The FDMQ is the trading platform for debt and over the counter securities. FMDQ was incorporated in January 2011, and began operations in 2013.
Rand Merchant Bank is a subsidiary of the First Rand group. The bank has coordinated funding for several landmark deals in the country, including the construction of the Ikeja City Mall, and providing a N4 billion finance for International breweries.
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