Commercial Papers

Looking for low-risk investments with good returns?
Get Commercial Papers on i-invest!

Commercial Papers

Looking for low-risk investments with good returns? Get Commercial Papers on i-invest!

Large Companies borrow money from the public sometimes. In exchange for this money, they give the lenders a certificate showing the details of how much they owe, when they will pay it back, and the interest they will pay for it. That certificate is called a Commercial Paper (CP), and it can be traded by the lender to another party in an organised financial market structure. The interest doesn’t change over time, so it is said to be fixed and like treasury bills, it is also paid upfront at the beginning of the agreement. This is why commercial papers are referred to as Discounted instruments.

Large Companies borrow money from the public sometimes. In exchange for this money, they give the lenders a certificate showing the details of how much they owe, when they will pay it back, and the interest they will pay for it. That certificate is called a Commercial Paper (CP), and it can be traded by the lender to another party in an organised financial market structure. The interest doesn’t change over time, so it is said to be fixed and like treasury bills, it is also paid upfront at the beginning of the agreement. This is why commercial papers are referred to as Discounted instruments.

  • Invest from as low as N50,000 on i-invest and enjoy access to relatively high return on investment
  • You get to earn your interest upfront (discounted value) at the point of purchase while the invested amount (face value) is paid fully at maturity
  • Low risk of default – the companies that issue commercial paper are large, creditworthy corporations and the paper often gets ratings from rating agencies. As a result, there is a low risk of you losing your investment.
  • CPs are also an effective way to diversify your investment portfolio and balance higher-risk investments like stocks.

Want to Buy Commercial Papers?

01

Download App

Download the i-invest app on the App Store or Google Play Store.
03

Fund Wallet

Fund your wallet via internet banking, card or in a bank branch. Wallet withdrawals can be made directly into an account linked to your BVN.
02

Register

Follow the Registration steps and be sure to upload a passport photograph, recent utility bill and a valid means of identification for KYC verification.
04

Invest

Select your preferred investment option and watch your money work for you!

Want to Buy Commercial Papers?

01
Download App

Download the i-invest app on the App Store or Google Play Store.

02
Register

Follow the Registration steps and be sure to upload a passport photograph, recent utility bill and a valid means of identification for KYC verification.

03
Fund Wallet

Fund your wallet via internet banking, card or in a bank branch. Wallet withdrawals can be made directly into an account linked to your BVN.

04
Invest

Select your preferred investment option and watch your money work for you!

A few things to note:

01

01

Commercial Papers are sold at a discount, meaning the investor pays less than the face value of the security, and the Income earned is the difference between the purchase price and face value.
02

02

While commercial papers in Nigeria are typically issued by corporates with remarkable credit ratings, this does not eliminate credit risk. However, commercial paper offers investors the opportunity to purchase better yielding instruments than available on risk-free instruments, especially investors who can take calculated risk.
03

03

CPs are short to medium term investments (duration of 15-270 days).

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investor. Watch our simplified video series to get started.

Get the necessary information needed to thrive as an investor. Watch our simplified video series to get started.