TrustBanc launches N20b Commercial Paper issuance: Takeaways for investors

TrustBank Holdings Limited has announced a N20 billion Commercial Paper issuance under its N100 billion Commercial Paper Programme.

This issuance marks a continuation of the company’s use of the Nigerian short-term debt market, as it seeks to raise funds to support working capital.

The offer opened on March 12, 2026, and is scheduled to close on March 23, 2026.

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_What the offer circular is saying _

• Series: 1 & 2
• Tenor: 268 days for Series 1, 364 days for Series 2
• Discount Rate: 18.5687% (Series 1), 19.0383% (Series 2)
• Implied Yield: 21.0000% (Series 1), 23.5000% (Series 2)
• Offer Open: Thursday, 12th March, 2026
• Offer Close: Monday, 23rd March 2026
• Use of Proceeds: To support the Issuer’s general corporate purposes and short-term funding requirements
• Issuer Rating: A1 (DataPro)
• Minimum Subscription: N5,000,000 (5,000 units at N1,000/unit), with multiples of N1,000 thereafter

**The Company behind the offer **

TrustBanc Holdings Limited is a fully integrated financial services group, with subsidiaries providing a broad range of services, including fund management, wealth management, corporate finance, microfinance, and savings and lending services.

**Its subsidiaries include: **

• TrustBanc Capital (a 99.99% owned subsidiary), which offers stockbroking and advisory services.
• TrustBanc Asset Management Limited, TrustBanc J6 Microfinance Bank Limited, and Prime Links Bureau De Change Limited.

Rating: TrustBanc Holdings Limited’s Long-term rating of “A” was upgraded to “A+” with a stable outlook by DataPro.

**What you need to know **

TrustBanc registered a N10 billion Commercial Paper Programme with FMDQ Exchange on April 23, 2021, which was upsized to N20 billion in May 2022.

• TrustBanc has successfully raised N33.09 billion across eighteen series, out of which N31.98 billion has been repaid.
• The N100 billion Commercial Paper Programme was approved by the Securities and Exchange Commission (SEC) on December 13, 2025, and the current series 1 and 2 offerings fall under this programme, with implied annual yields ranging from 21.50% to 23.50%.

**Investment case **

This commercial paper issuance could present an investment case if backed by a repayment track record and financial performance. Let’s see.

From a financial perspective, TrustBanc appears to have strong revenue and profit growth.

• Over the past four years (2022-2025), the company has demonstrated consistent profit growth, reaching N1.4 billion in 2025, a 96% increase compared to 2024.  During this period, profit grew annually by 66.48%
• The strong bottom line appears to be driven by strong growth in interest income.
• Over the past four years, the bank generated interest income of N14.3 billion and spent N9.3 billion on interest expenses, giving net interest income of about N5 billion in 4 years.

In 2025, it reported net interest income of N2.5 billion, almost double that of 2024, N1.3 billion and the highest in 4 four years.

On the balance sheet, total assets grew to N117 billion, driven by investment in financial assets, which accounted for over 78% of total assets, while shareholders’ funds accounted for 21% of the balance sheet size.

**Investor takeaways **

TrustBanc’s implied yields for its commercial paper issuance (ranging from 21.00% to 23.50%) are notably higher than the FGN Treasury Bills (TB) yields.

For instance, the 364-day FGN TB yield was 16.72% in March 2026, while TrustBanc’s 364-day CP yield is 23.50%.

This suggests that TrustBanc is offering a higher risk premium, reflecting its credit profile and market conditions.

DataPro upgraded TrustBanc’s long-term rating to A+, and its short-term rating is A1. This, according to the agency, reflects good credit quality and strong capacity for timely payment of obligations.

TrustBanc’s financial performance shows strong profitability and revenue growth, particularly with net interest income growing consistently over the years. The 96% YoY increase in profit after tax in 2025 signals the company’s robust financial health.

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