28 Companies Issued Commercial Papers Worth N507bn in the Nigerian Fixed Income Market in Q1 2023
28 Companies issued commercial papers (CPs) in the Nigerian Fixed Income Market during the first quarter of 2023.
According to Ademidun Shogo, Economist and Fixed Income Analyst with Proshare, the CPs issued were worth a total of N507bn.
The companies covered the following sectors financial services, information and communication technology, trade, agriculture, manufacturing, services and real estate.
Speaking on the reason for the improvement in issuance of CPs in the fixed income market, she attributed it to the low yield environment in the treasury bills market which enables companies to access the market to raise funds through commercial papers.
The analyst also noted that with lending rates soaring at an unprecedented level, companies in the country, have been exploring creative ways to mobilize funds at affordable rates.
It will be recalled that prior to now analysts and stakeholders in the financial market had decried the crowding out of the private sector, in the fixed income market and the increased appetite for CPs has been described as a welcome development.
The FMDQ Securities exchange has also played a key role in improving activities in the commercial papers market, by positioning itself as the leading platform that is catalyzing debt market activities and deepening the fixed income market.
All the 28 commercial papers that were issued by the companies in the first quarter of 2023 were listed on the FMDQ Exchange.
