Nova Merchant Bank Positions Self to Propel Economy

By Dipo Olowookere

The Chief Executive Officer/Managing Director of Nova Merchant Bank Plc, Mr Nath Ude, has disclosed that the company is well-positioned to support the Nigerian economy by supporting the real estate sector.

Mr Ude gave this assurance at the listing of the N10 billion bond on the Nigerian Exchange (NGX) Limited on Thursday, June 3, 2021.

The note is the NOVAMBL Investments SPV Plc N10 billion Series I, 7-year 12 per cent subordinate unsecured fixed-rate bond due 2027 under the company’s N50 billion bond issuance programme and the paper was oversubscribed by 300 per cent.

“I must commend the board and management of Nova for this significant milestone. We did not only enjoy an oversubscription of 300 per cent on our bond, but we have also become the youngest merchant bank to issue a bond in Nigeria.

“We are very proud of what we have achieved and we believe it represents a vote of confidence by the investment community.

“The gratitude goes to our stakeholders who invested in this bond despite economic hardships. With this bond, we are well-positioned to provide long term funding especially to the real sector, and we will continue to align with NGX to drive the economy through targeted investment opportunities as an organisation offering an integrated suite of financial solutions,” Mr Ude said.

In his remarks, the Divisional Head of Listings Business at NGX Limited, Mr Olumide Bolumole, expressed delight in the success of the bond, noting that it was “an indication of the level of investor confidence in the company’s reputation, brand and corporate performance.”

“The company’s growth potential is so evident that Nova Merchant Bank emerged as the winner of the Bond Offering of the Year at Business Day and Other Financial Institutions (BAIF) Awards.

“It is our delight to see issuers such as Nova Merchant Bank take full advantage of the NGX’s products and services to support their growth story, and we encourage capital market players to explore other capital raising tools available on NGX to enhance their corporate profile, visibility and sustainability,” he added.

On his part, the Group Chief Executive Officer of United Capital Plc, the lead financial adviser/issuing house for the transactions, Mr Peter Ashade, expressed his gratitude to the board and management of Nova Merchant Bank for the opportunity to serve, and also thanked the regulators, particularly NGX, the joint issuing houses – Stanbic IBTC Capital Limited, Union Capital Markets Limited – and members of the investing public.