The Capital and money market investment landscape in Nigeria has several options which interested individuals and organisations can put their money in for an appreciable Returns-On-Investment (ROI).
In Nigeria, one of such investment options which many investors do not have sufficient information about are Commercial Papers.
What Is A Commercial Paper?
A Commercial Paper is a short-term debt financing security which indicates that Party A has pledged to pay money to Party B. These instruments or documents are often issued by banks or large corporations as a way of raising short-term funds for operational expenditure and other short-term liabilities
Maturity Date of Commercial Papers
Commercial papers are usually short term instruments and their maturity date are often no longer than 270 days in tenor.
Commercial Papers are issued with a fixed interest rate and this is computed and paid along with the principal sum of investment at the expiration of the investment tenor of the commercial paper.
Commercial Papers have their credibility tied in to the issuing organisation. Hence, for this reason they are often viewed as low risk investment tools, as the promissory notes are backed by the financial health of the bank or corporation that is issuing the commercial paper.
Difference Between Commercial Papers & Treasury Bills
Although Treasury bills and commercial papers are both investment tools, the difference between them is that Treasury bills are issued by the Federal Government while Commercial papers are issued by private corporations.
How To Invest In Commercial Papers In Nigeria
Engaging the services of a trusted and reliable broker is the best way to invest in Commercial Papers in Nigeria. A trusted broker is able to do the right diligence and give the requisite financial advise on what organisations you can invest in.
Are you interested in investing in Commercial Papers in Nigeria? Talk to a broker today at Dominion Trust Limited.
Call: +234 8108896937, +234 8034054979,+234 8191449754, +234 8076718151