Access Bank Plc has announced the issuance of commercial papers (CPs) worth up to N194 billion under its N400 billion CP programme.
The offering is structured into two series: Series 3 and Series 4 with varying tenors and yields.
Key details of the issuance:
- Series 3: 180-day maturity at a discounted rate of 19.44% (effective yield: 21.50%).
- Series 4: 270-day maturity at a discounted rate of 20.92% (effective yield: 24.75%).
- Subscription period: March 20 – March 25, 2025.
- Minimum subscription: N5 million, with subsequent investments in multiples of N1,000.
Providing a clearer picture, the discounted rate is the percentage discount applied when buying commercial paper. Instead of paying the full-face value upfront, investors buy it at a lower price and receive the full value at maturity.
On the other hand, effective yield represents the actual return an investor earns over the investment period, taking into account the time value of money.
Since commercial papers are sold at a discount…
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