TrustBanc holdings limited earns GCR rating upgrade, CP issuance records remarkable oversubscription

TrustBanc Holdings Limited’s long-term Issuer rating has recently been upgraded by GCR from BBB- to BBB with a stable outlook. GCR also affirmed the short-term issuer rating at A3.

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

Additionally, the rating reflects TrustBanc’s stable funding structure, adequate liquidity, and favourable risk position compared to its competitors.

The upgrade also aligns 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 operating performance, and growing business profile.

On 26th February 2024, TrustBanc approached the CP market to raise N5bn by issuing series 19, 20 and 21 under its N20 billion Commercial Paper (CP) Programme. The total bids received in the order book at the close of the offer on 4th March was N6.74 billion, a remarkable 135% subscription amidst the unprecedented liquidity squeeze in the financial system.

Mr. Abu Jimoh, CFA, the Group’s Chief Executive Officer, described the successful issuance as a strategic milestone in its bid to maintain its position as a leading non-bank financial service provider in the CP market. He emphasized, “…entering the market during a period of unprecedented financial system liquidity deficit, and receiving an amount surpassing our original request, reflects investors’ heightened trust in our strategy, performance, and strong credit profile.”

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

Since the registration of its debut CP Programme on FMDQ in 2021, the company has continued to see active and growing participation from the market, demonstrating continued investor confidence in TrustBanc and its growth trajectory. To date, TrustBanc has raised ₦39.8 billion across several series, and all maturing series worth ₦33 billion have been paid back successfully on time. In 2022, TrustBanc was nominated along with MTN and FCMB for the award of largest CP lodgement on FMDQ.

“I want to thank all Institutional Investors and Pension Fund Administrators (PFAs) whose contributions have been instrumental in the success of our series thus far. We look forward to the same warm reception as we engage the market in our subsequent series. Thank you again for your continued confidence in TrustBanc.” Abu Jimoh, CFA.

TrustBanc is a fully integrated financial services group, 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 allows for shared services, increased efficiencies, reduced duplication, reduced cost of capital and operations within the Group.

The subsidiaries collectively provide a diverse range of solutions, encompassing fund management, wealth management, investment advisory, non-interest finance and investment, corporate finance, securities trading, microfinance, as well as savings and lending services.