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Mon, Jul 31, 2023 6:25 PM

DLM Capital Leads Development Bank of Nigeria's Debut Bond Issue

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DLM Capital Leads Development Bank of Nigeria's Debut Bond Issue
DLM Capital Group, a prominent development investment banking institution, played a key role in the successful debut bond issue of the Development Bank of Nigeria (DBN). The ₦23 billion bond issue aims to provide sustainable capital to Micro, Small, and Medium-Scale Enterprises (MSMEs) and received overwhelming market acceptance. The transaction showcases the strength of the Nigerian capital markets amidst global market volatility.

Lagos, Nigeria - DLM Capital Group, a reputable development investment banking institution, proudly served as both the principal issuing house and the financial consultant for the Development Bank of Nigeria's (DBN) groundbreaking bond issuance. This milestone not only marks the debut bond issue for DBN but also showcases the resilience and credit quality of the Nigerian capital markets, even amidst global market volatility.

The DBN's Series 1 ₦23 billion, 14.40% 5-Year Bond, issued under a N100 billion Medium Term Note Programme registered with the Securities and Exchange Commission, aims to provide sustainable capital to Micro, Small, and Medium-Scale Enterprises (MSMEs) – a critical sector driving growth and employment in Nigeria.

On July 13, 2023, the DBN successfully issued the first batches of bonds, with eligible bids totaling ₦23 billion. The overwhelming response from the market demonstrated the high demand for financing solutions tailored to support MSMEs and small businesses in Nigeria.

"We are delighted to have played a key role in this historic transaction," said Dr. Tony Okpanachi, the Managing Director and Chief Executive Officer of DBN. "Our goal as an institution is to alleviate the financial constraints faced by MSMEs and small businesses in Nigeria. This bond issuance will significantly contribute to achieving that objective."

DLM Advisory Limited, a subsidiary of DLM Capital Group, constructed the bond issuance program and provided expert advice throughout the process. Mr. Nwabu Okonkwo, Vice President, Investment Banking at DLM Advisory Limited, stated, "We are pleased with the positive market response to the bond offering, which attracted a wide array of investors, including domestic pension funds, asset managers, and insurance companies."

With an initial target of ₦20 billion, the bond issuance ended up receiving subscriptions amounting to ₦25.37 billion, exceeding expectations by 1.26 times. The Series 1 Bond was eventually offered at a clearing coupon of 14.40%, ensuring favorable returns for investors.

Mr. Babatunde Sonnie Ayere, the GCEO of DLM Capital Group, expressed his pride in leading this historic transaction and highlighted the strong credit quality of DBN as well as the resilience of the Nigerian capital markets. He stated, "This milestone highlights the potential for growth and development within the Nigerian financial sector, particularly in supporting MSMEs and advancing economic sustainability."

By issuing the first development bond in Nigeria, the DBN and DLM Capital Group are pioneering efforts to harness capital market opportunities for the benefit of MSMEs. This landmark achievement sets the stage for further collaborations and initiatives to drive economic growth, job creation, and financial inclusion across Nigeria.

Source of content: OOO News 2023-07-31 News

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