A 5 billion Naira commercial paper (CP) issuance program has been registered by Infinity Microfinance Bank Limited, a move that will allow the micro bank to raise new short-term debt capital.
Small and medium-sized businesses are the focus of Infinity Microfinance Bank Limited, which also offers services including modest business loans and the mobilization of small savings.
The bank will have the chance to obtain short-term financing from the Nigerian CP market thanks to the CP Program.
According to Oludotun Adewunmi, Managing Director of Infinity Microfinance Bank Limited, the bank announced the quotation of its N5 billion commercial paper issuance program on FMDQ Securities Exchange Limited.
“The CP program is an important strategic move for the bank towards achieving its mandate of supporting the growth of low-income households as well as micro, small and medium-sized enterprises across Lagos State.
“The registration of this CP program, in addition to allowing Infinity Microfinance Bank to broaden its sources of funding, has provided the bank with a platform to raise short-term finance, within the CP program limit, from the Nigerian debt markets when it deems suitable,” Adewunmi said.
Managing Director, FSDH Capital Limited (FSDH Capital), Tolu Osinibi, said FSDH Capital was delighted to have advised Infinity Microfinance Bank on this landmark registration.
“This is the first CP program to be registered by a microfinance bank on FMDQ Securities Exchange Limited and without a doubt sets the pace for other duly licensed and regulated microlending institutions seeking to raise capital via the issuance of commercial papers.
“The admission on the FMDQ Exchange platform will deliver maximum market visibility and enhanced liquidity of CPs issued under the CP Programme.
We are thankful to the Board and management of Infinity Microfinance Bank Limited for trusting FSDH Capital to execute this landmark transaction and provide the expert guidance required to navigate the challenges faced by first-time issuers in the markets,” Osinibi said.
