What are commercial papers?
What returns do they offer?
and what are the risks associated with investing in commercial papers?

I will be discussing everything on Commercial paper soon both for investing and educational purposes

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Hello ernie, i am very interested in this post please go on. Also it would be great if you can shed some light on how to participate in equity trades as a dummy..lol

lilsyd:
Hello ernie, i am very interested in this post please go on. Also it would be great if you can shed some light on how to participate in equity trades as a dummy..lol

yeah, i will soon post something.

For equity Trade as a beginner you may have to read up lots of stuffs online and offline, from stock brokerage firms, some stockbroker firms offer dummy accounts where you can trade in a simulation platform while having the effects of real market trend.
This trades could help give you the practical approach in learning.

Commercial paper is to corporate organizations what Treasury bills is to sovereign governments.

Commercial paper represents short term unsecured debt instrument used by corporate organization with strong credit rating to raise funds from the investing public. The term unsecured means they are not backed with any collateral that is why only firms with strong credit ratings can issue commercial papers

They are classified as a money market instrument (money market instruments are investments that typical mature within a year). Usually firms use commercial paper to fund working capital that includes raw materials and other input resources etc.

Maturities’ of commercial paper is not above 270 days or else they need to be registered with SEC, so firms find it easier to issue commercial papers because of less registration than other debt instruments. Most firms issue commercial papers as means to avoid higher interest rates from banks for instance banks could charge as high as 30% P.A while you could just issue commercial papers at 15% P.A , so it’s more favorable for firms to issue commercial papers than to take loans from banks but then its only firms with strong credit rating that the investing public would trust enough to lend them money in form of commercial papers especial since its unsecured.

So what about firms with low credit ratings, what can they do if the want to issue Commercial paper?

Hard truth.

With the sudden nose diving of treasury bills rate we all should expect money market funds to follow soon.

You may want to consider other mutual funds.
You said this on the mutual fund thread. Can you kindly shed more light?
Thanks

Delightful8:
Hard truth.

With the sudden nose diving of treasury bills rate we all should expect money market funds to follow soon.

You may want to consider other mutual funds.
You said this on the mutual fund thread. Can you kindly shed more light?
Thanks

A huge percentage of money market funds are invested into treasury bills, so if rates on treasury bills trends down so will the performance of money market funds too

Nigerian Breweries Plc commercial paper

Series Number Series 1 Series 2

Tenor 90 days 182 days

Effective Yield 11.5900% 14.4300%

Discount Rate 11.2680% 13.4614%

Issuer Rating Aa (Agusto); AA (GCR) Aa (Agusto); AA (GCR)

Minimum Subscription 5 Million Naira Only 5 Million Naira Only

Offer Open Thursday, April 11th, 2019 Thursday, April 11th, 2019

Offer Close Date Thursday, April 18th, 2019 Thursday, April 18th, 2019

Settlement Date Tuesday, April 23rd, 2019 Tuesday, April 23rd, 2019

Maturity Date Monday, 22nd July 2019 Tuesday, 22nd October 2019

Flour Mills of Nigeria plc commercial paper

Tenor. 181 DAYS

Discount rate: 13.5273%

Implied yield : 14.50000%

Offer open : April 16,2019

Offer close : April 23,2019

Funding date: April 24,2019

Minimum : 5m

Tax consideration : free and clear of withholding taxes

Issuer:Dangote Cement PLC

Tenor:93-days, 178-days, 269-days

Target Size:Up to N50billion

Discount Rate (%):12.0000, 12.3000, 12.0000

Implied Yield (%): 12.3785, 13.0849, 13.1642

Offer Open Date:Wednesday, 22 May 2019

Offer Close Date:Friday, 24 May 2019

Allotment Date:Friday, 24 May 2019

Settlement Date:Monday, 27 May 2019

Minimum Subscription:N5million

Tax Consideration:Free and clear of withholding taxes

Mixta Real Estate PLC

Series Number Series 6 Series 7

Tenor 180 days 266 days

Effective Yield 14.6700% 15.3600%

Discount Rate 13.6803% 13.8137%

Issuer Rating A3’ Short term (2018) and “BBB” Long term (2018) by Global Credit Rating Co. Limited A3’ Short term (2018) and “BBB” Long
term (2018) by Global Credit Rating Co. Limited

Minimum Subscription Minimum of ₦5.0m and multiples of ₦1,000 thereafter Minimum of ₦5.0m and multiples of ₦1,000 thereafter

Offer Open Thursday, May 23rd, 2019 Thursday, May 23rd, 2019

Offer Close Date Monday, May 27th, 2019 Monday, May 27th, 2019

Allotment Date Tuesday, May 28th, 2019 Tuesday, May 28th, 2019

Issue Date Thursday, May 30th, 2019 Thursday, May 30th, 2019

Stanbic IBTC Bank PLC

Series Number. Series 48. Series 49. Series 50

Tenor. 90 days. 180 days. 270 days

Effective Yield. 11.9840%. 12.6532%. 14.0000%

Discount Rate. 11.6400%. 11.9100%. 12.6862%

Issuer Rating. "AAA" (Fitch); "AA-" (GCR)


Minimum Subscription. Minimum of ₦5.0m and multiples of ₦1,000 thereafter


Offer Open Date. Friday, May 31st, 2019


Offer Close Date. Thursday, June 6th, 2019


Allotment Date. Thursday, June 6th, 2019

Issue Date. Friday, June 7th, 2019

Issuer: Mixta Real Estate PLC

Tenor 183 days 268 days

Discount Rate 13.95% 14.32%

Effective Yield 15.00% 16.00%

Issuer Rating Bbb- (Agusto) Bbb- (Agusto)

Minimum Subscription ₦5,000,000 ₦5,000,000


Offer Close Date Monday, 2 September 2019 Monday, 2 September 2019

Maturity Date Wednesday, 4 March 2020 Thursday, 28 May 2020

These commercial papers are not cheap o.5m

Nice job OP.

Following

Nice one.

Following.

I missed out on NB Plc CP. Had less than 5M at that period as I just did Secondary TB with Coronation Securities.

Can one buy less Than 5 million at the secondary market of commercial papers

Issuer: Nigerian Breweries PLC
Arranger & Dealer: Stanbic IBTC Capital Limited , FBNQuest Merchant Bank Limited and FCMB Capital Markets Limited
Series: Series 5 Series 6
Nigerian Breweries PLC Issue of up to NGN45 Billion Series 5 and Series 6 Commercial Paper
Tenor: 183 days 270 days
Target Size: Up to NGN15 billion Up to NGN30 billion
Discount Rate: 4.8781% 7.1068%
Implied Yield: 5% 7.50%
Offer Open Date: Monday, 3 January 2020
Offer Close Date: Friday, 7 February 2020
Settlement Date: Monday, 10 February 2020
Maturity Date: Tuesday, 11 August 2020 Friday, 6 November 2020
Issuer Rating: Aa- (Agusto); A1+ (GCR)
Minimum Subscription: NGN5 million

ernie4life:

Issuer: Nigerian Breweries PLC
Arranger & Dealer: Stanbic IBTC Capital Limited , FBNQuest Merchant Bank Limited and FCMB Capital Markets Limited
Series: Series 5 Series 6
Nigerian Breweries PLC Issue of up to NGN45 Billion Series 5 and Series 6 Commercial Paper
Tenor: 183 days 270 days
Target Size: Up to NGN15 billion Up to NGN30 billion
Discount Rate: 4.8781% 7.1068%
Implied Yield: 5% 7.50%
Offer Open Date: Monday, 3 January 2020
Offer Close Date: Friday, 7 February 2020
Settlement Date: Monday, 10 February 2020
Maturity Date: Tuesday, 11 August 2020 Friday, 6 November 2020
Issuer Rating: Aa- (Agusto); A1+ (GCR)
Minimum Subscription: NGN5 million

he small sha

News around is that Dangote Cp will soon be out (just rumor)

Are you looking for your missing shares, bonuses and unpaid dividends, do not worry again with ISF you can get them back. It is approved by SEC.

You can check it out in Business Day.

https://businessday.ng/companies/article/respite-for-investors-shareholders-over-n130bn-unclaimed-dividends-missing-shares/amp/

ernie4life:
News around is that Dangote Cp will soon be out (just rumor)

Ok, we will be waiting...

ernie4life:

Issuer: Nigerian Breweries PLC
Arranger & Dealer: Stanbic IBTC Capital Limited , FBNQuest Merchant Bank Limited and FCMB Capital Markets Limited
Series: Series 5 Series 6
Nigerian Breweries PLC Issue of up to NGN45 Billion Series 5 and Series 6 Commercial Paper
Tenor: 183 days 270 days
Target Size: Up to NGN15 billion Up to NGN30 billion
Discount Rate: 4.8781% 7.1068%
Implied Yield: 5% 7.50%
Offer Open Date: Monday, 3 January 2020
Offer Close Date: Friday, 7 February 2020
Settlement Date: Monday, 10 February 2020
Maturity Date: Tuesday, 11 August 2020 Friday, 6 November 2020
Issuer Rating: Aa- (Agusto); A1+ (GCR)
Minimum Subscription: NGN5 million

Please don't mind my asking, but are the percentage implied yield per annum, or just for the selected duration?

ernie4life:
News around is that Dangote Cp will soon be out (just rumor)

Bro let me get your number pls.

Any new commercial papers auction?

damilola1978:
Any new commercial papers auction?

Hot offer, best in the market right now

Which registrars?

ernie4life:


Hot offer, best in the market right now

Coronation merchant bank commercial paper offer

Any new commercial papers

Dangote

kontrolbuoy:
Dangote

This is a bond not a commercial paper