The infusion of N1.5 billion in capital into TrustBanc Holdings Limited’s microfinance bank subsidiary has been accepted by the company’s shareholders, and DataPro has improved the parent company’s rating from A to A+ with a stable outlook.
The bank’s position as a top lender in the public sector segment will be further strengthened by the shareholders’ acceptance, according to a statement released on Monday, and it will make it easier for it to expand into other retail lending categories.
The long-term rating of A+ in the DataPro rating remark denotes low risk. It displays the group’s solid financial standing, outstanding operational efficiency, and expanding market profile.
During the year under review, the fund held by TrustBanc shareholders increased from N2.9 billion to N11 billion. For the group’s subsidiary companies, TrustBanc Capital Management Limited, TrustBanc Asset Management Limited, and TrustBanc J6 MFB Limited, the rating note confirmed that the N11 billion is significantly above the total regulatory required capital of N550 million set by the Securities & Exchange Commission and Central Bank of Nigeria.
According to DataPro’s study, liquid assets made up the majority of TrustBanc’s assets as of the end of 2022, or 89% of the total assets.
In the meantime, TrustBanc redeemed its series 11 Commercial Paper issue earlier this month for a total of N4.9 billion, making it the fourth successful redemption in 2023 after the earlier redemption of series 8, 9, and 10 for a total of N5.96 billion.
“We are thrilled to keep our promise and redeem the Series 11 issue when it matures once more. We sincerely appreciate each and every one of the proprietors of our commercial paper. Their faith in us is a testament to our solid business operations, sound model, and expansion plans.
As a group, we take pride in contributing to the development of the Commercial Paper market through our association with the FMDQ. It is worth mentioning that TrustBanc was nominated, alongside MTNN and FCMB, for the award of the largest commercial paper lodgement on FMDQ last year,” said Group Chief Executive Officer, Abu Jimoh.
Dealers on the CP issue include UCML Capital Limited, United Capital Plc and Emerging Africa Group.
Speaking on behalf of the dealers, a director at UCML Capital Limited, Egie Akpata, said the company’s ability to pay at maturity confirms to subscribers and the market at large that TrustBanc is trustworthy.