Commercial Paper (CP) is a commonly used type of unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities. Maturities on commercial paper typically last several days, and rarely range longer than 270 days.
Nigerian businesses have continued to raise funds to finance their businesses through issuance of Commercial Papers (CPs) championed by FMDQ Securities Exchange Limited. This is as access to capital remains a top priority for corporates, as capital is required to meet short-term debt obligations such as working capital needs, funding expansion aspirations and existing debt obligations.
As at June 30, 2024, 31 companies cutting across several sectors of the economy, have raised and listed a total of N583.86 billion Commercial papers on the floor of the FMDQ Securities Exchange.
