Business News
First City Monument Bank Ltd issues N20 billion commercial paper
First City Monument Bank Limited is all set to raise capital to the tune of N20 billion through the issuance of commercial paper.
First City Monument Bank Limited is all set to raise capital to the tune of N20 billion through the issuance of commercial paper. The bank is the main subsidiary of FCMB Group Plc which is listed on the Nigerian Stock Exchange.
According to a press statement that was made available by FCMB Group, the N20 billion commercial paper is the first ever to be issued by First City Monument Bank. It is also the first part of a larger N100 billion commercial paper programme that has been planned by the bank.
The N20 billion commercial paper issuance has been planned to have a tenor of 269 days, and it is expected to support the bank’s short-term funding, thereby augmenting its funding.
Who is eligible to participate? Commercial papers are usually targeted at institutional investors such as Pension Fund Administrators and non-pension asset managers. Some high net-worth investors are also eligible to apply.
[READ MORE: MTN Nigeria to raise N100 billion through commercial paper)
More on CPs: Note that a Commercial Paper is an unsecured, short-term debt instrument that is issued by big corporations. It is said to be unsecured because it is not usually backed by any form of collateral.
As a result, only companies with very high-quality debt ratings can easily find buyers without having to offer a substantial discount (higher cost) for the debt issue.
Companies like First City Monument Bank typically issue commercial paper for the purpose of raising capital and financing short-term liabilities.
As you can see from the tenor of FCMB’s N20 billion issuance, the maturity dates for CPs seldom lasts longer 270 days.
According to Investopedia, one of the major advantages of commercial paper is that there is usually no need to register it with the Securities and Exchange Commission (SEC). However, this is on the proviso that the issuer plans the tenor to last for exactly nine months or 270 days. Not registering it with SEC, therefore, makes it a very cost-effective way to raise money.
Coronavirus
Covid-19: WHO approves China’s Sinopharm vaccine
WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.
The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.
This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.
“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.
The WHO added that the easy storage requirements make it highly suitable for low-resource settings.
“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.
“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.
The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.
The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.
In case you missed it
The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.
Obituaries
“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead
Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead
A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.
According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.
Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.
READ: Abba Kyari’s last letter to President Buhari
She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.
The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.
READ: Chad’s President Deby dies of injuries suffered on the frontlines, as son takes over
Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.
Details later…
