TrustBanc N20bn Commercial Paper Offer Opens with 23.5% Yield

TrustBanc Holdings Limited has returned to the Nigerian debt market with a N20 billion Commercial Paper (CP) issuance.

This is part of its N100 billion programme aimed at strengthening working capital and supporting its financial services operations.

Opened on March 12, 2026, the programme is scheduled to close on March 23, 2026. It adds to a list of corporate debt issuances targeting investors seeking higher returns outside traditional savings and equities.

Commercial Papers are short-term debt instruments issued by companies to raise funds from investors at agreed interest rates. For this round, TrustBanc is offering two tenors:

Series 1: 268 days at an implied yield of 21.00%

Series 2: 364 days at an implied yield of 23.50%

The minimum subscription is set at N5 million, placing the offer largely within reach of institutional investors and high-net-worth individuals.

The yields on offer stand above current Federal Government borrowing rates. As of March 2026, the 364-day Treasury Bill yield is around 16.72%.

At 23.50%, TrustBanc is offering a premium of roughly 6.7 percentage points over government securities of similar tenor. The higher return reveals the additional risk investors take when lending to a private company rather than the government.

TrustBanc’s credit profile may provide some reassurance to investors. DataPro recently upgraded the company’s long-term rating to A+ with a stable outlook, while its short-term rating stands at A1, indicating strong capacity to meet short-term obligations.

The firm also has a repayment history in the market, having raised over N33 billion previously and repaid nearly N32 billion.

Financial performance has also improved. In 2025, profit rose by 96% to N1.4 billion, while total assets increased to N117 billion, supported largely by growth in financial investments.

According to the company, proceeds from the issuance will be used for general corporate purposes, including funding day-to-day operations.

The 23.50% yield is above Nigeria’s latest inflation rate of 15.06%, offering positive returns. However, unlike Treasury Bills, Commercial Papers carry corporate credit risk.

Investors are advised to review the offer documents carefully and seek professional financial advice before committing funds.

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