Bankers Acceptance

Short term discount instrument used in the course of international trade.

Bankers Acceptance

It is a short term discount instrument used in the course of international trade.​
It is drawn on and accepted by banks which are obliged to pay the face value on maturity.

Product Features

  • – Short term negotiable discount note
  • – Bank guarantees on behalf of buyer to pay seller by accepting time draft
  • – Typical tenor usually six months
  • – Interest usually paid upfront except otherwise agreed
  • – Used to fund trade transactions
  • – Typical bearer security i.e. bearer of security at time of maturity redeems amount
  • – Can be held till maturity or sold at a discount before maturity
  • – Mostly regarded as promissory note of accepting bank

Your Benefits

  • – Considered very safe assets because it allows trader to substitute a banks credit standing for its own.
  • – Used widely in international trade where the creditworthiness of one trader is unknown to the trading partner
  • – Beneficial as both an asset and a liability

The Requirements

Existing Clients
  • – Letter expressing desire to invest in BA and authority to debit account thereafter
  • – Custodial authority duly signed by client
  • – Copy of physical bill duly signed by investor and reflecting issuers name
  • – Duly signed investment contract confirmation letter showing issuers name.
  • – Filled KYC form
 
New Clients
  • – Account opening form with passport attached and means of identification
  • – Cheque or lodgment slip
  • – Custodial authority duly signed by client
  • – Copy of physical bill duly signed by investor and reflecting issuers name
  • – Duly signed investment contract confirmation letter showing issuers name.
  • – Filled KYC form

Application Process

  • – You initiate request and comply with requirements above
  • – Account officer verifies documents and forwards to treasury
  • – Treasury raises deal slip and forwards to Trops
  • – Your account is debited in line with deal slip instructions
  • – Contract certificates are generated
 

Frequently Asked Questions

You can buy or sell shares through UBA Securities Limited. Please see their contact details below:
UBA Securities Limited
Customer Services
UBA House | 12th Floor
57, Marina
P. O. Box 2406,
Lagos, Nigeria
Email: ubastockbrokers@ubagroup.com
Telephone: +234-1-2808919
www.ubacapitalgroup.com

  • UBA’s financial year-end was originally March of each year. After the merger of UBA and STB, with effect from 1 August 2005, the bank’s financial year-end was changed to September. However, with the CBN policy on uniform year end, the reporting period is now December. In addition, UBA reports interim results of the group every three months to the Nigerian Stock Exchange and to shareholders in the Nigerian Press within 15 days after the expiration of the reporting period.

Yes you can. Kindly contact our registrars, Africa Prudential Registrars Limited to set this up. Please see their contact details below:
Business Development and Relationship
Management Unit
Africa Prudential Registrars Limited
220B, Ikorodu Road, Palmgrove
Lagos, Nigeria
Email: info@africaprudentialregistrars.com
Telephone: +234-1-4606460
www.africaprudentialregistrars.com

The merger between United Bank For Africa Plc and Standard Trust Bank Plc came into effect on 1 August 2005.

The current tax legislation requires that a withholding tax of 10% be deducted at source from all dividend payments.

If you need assistance or have questions, we are always here to help.
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