Businesses seeking to raise capital have a choice between equity
or debt financing. Given the increase in inflation and interest
rates, it is commercially prudent to adopt short-term debt
financing like commercial papers as an easy way to raise
cost-efficient capital for a short term, usually less than a year.
The money market is
becoming a viable option for raising capital. Commercial papers
("CPs") have become an increasingly popular financial
instrument in Nigeria's corporate finance landscape.
According to the monthly reports of the FMDQ exchange, there has been an increase in commercial paper quotations since the beginning of the year. In this article, we will delve into commercial papers, exploring their advantages over other debt instruments, and examining the legal framework and procedure for their issuance in Nigeria...
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Originally published on 2023-11-13
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
