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TrustBanc Holdings Limited Earns GCR Rating Upgrade, CP Issuance Records Notable Oversubscription

TrustBanc Holdings Limited’s long-term rating was recently upgraded by GCR from BBB- to BBB with a stable outlook. GCR also affirmed the short-term rating of A3.

The upgrade is attributed to TrustBanc’s improved capital base and continued strong financial leverage ratio.

Furthermore, the rating reflects TrustBanc’s stable financing structure, sufficient liquidity and favorable risk position compared to its peers.

The upgrade is also in line with DataPro’s upgrade from A to A+ with a stable outlook. According to DataPro’s rating note, the long-term rating of A+ indicates low risk. It reflects the Group’s strong financial strength, excellent operational performance and growing business profile.

On February 26, 2024, TrustBanc approached the CP market to raise N5 billion by issuing Series 19, 20 and 21 under its N20 billion Commercial Paper (CP) Program. The total number of bids received in the order book at the close of bidding on March 4 stood at N6.74 billion, a remarkable 135% subscription amid the unprecedented liquidity crisis in the financial system.

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Mr. Abu Jimoh, CFA, Chief Executive Officer of the Group, described the successful issuance as a strategic milestone in its bid to maintain its position as a leading non-bank financial services provider in the CP market. He emphasized: “…entering the market during a period of unprecedented liquidity shortage in the financial system and receiving an amount in excess of our original request reflects increased investor confidence in our strategy, performance and strong credit profile.”

UCML Capital Limited, United Capital Plc and Emerging Africa Group acted as dealers in the transaction. Speaking on behalf of the dealers, Managing Director of UCML Capital Limited, Mr. Egie Akpata, said: “The level of oversubscription of the issue indicates broad acceptance by institutional investors of TrustBanc Holdings as an institution of choice.”

Since registering its debut CP program on FMDQ in 2021, the company has continued to see active and growing market participation, demonstrating continued investor confidence in TrustBanc and its growth trajectory. To date, TrustBanc has raised ₦39.8 billion through various series, and all maturing series worth ₦33 billion have been successfully repaid on time. In 2022, TrustBanc was nominated together with MTN and FCMB for the award of the largest CP application on FMDQ.

“I would like to thank all the institutional investors and pension fund managers (PFAs) whose contributions have played a major role in the success of our series to date. We look forward to the same warm reception as we enter the market in our next series. Thank you again for your continued trust in TrustBanc.” Abu Jimoh, CFA.

TrustBanc is a fully integrated financial services company consisting of TrustBanc Holdings Limited and four licensed operating subsidiaries: TrustBanc Capital Management Limited, TrustBanc Asset Management Limited, TrustBanc J6 MFB Limited and WeFinance Solutions Limited.

TrustBanc Holdings Limited provides an integrated strategy and governance that enables shared services, increased efficiency, reduced duplication and reduced costs of capital and operations across the Group.

The subsidiaries jointly offer a wide range of solutions, including fund management, asset management, investment advice, non-interest financing and investments, corporate financing, securities trading, microfinance, as well as savings and credit services.