Providus Bank Opens N50bn Commercial Papers for Subscription
Providus Bank Limited has opened up to N50 billion in commercial papers across two tenors for investors’ subscription; discount rates range between 20.2528% and 21.4533%, according to an offer document.
The Nigerian lender is looking to raise the amount from series 1 and series papers under N100 billion commercial paper program registered with regulators.
The bank is accessing funds from investors in the debt capital market to meet its short-term capital needs from commercial papers with 180-day and 270-day tenors via an offer for subscription scheduled to close on April 30, 2025.
Providus Bank priced its 180-day commercial paper at the discount rate of 20.2528%, while 270-day papers attracted a 21.4533% discount rate.
The minimum amount an investor can put into the debt paper has been pegged at N5 million and multiples of N1000 thereafter, according to the offer document.
Providus Bank Limited was licensed as a regional bank in 2016 by the central bank, having previously operated as a mortgage lender in Nigeria for 15 years.
The offer document revealed that the bank evolved from United Mortgage Bank Limited, and it is currently carving a niche in the retail banking segment.
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