By Aduragbemi Omiyale
The debut bond issuance of the Development Bank of Nigeria (DBN) may have come and gone; the exercise was very successful because of the inputs of organisations like DLM Capital Group.
Business Post reports that on July 13, 2023, DBN issued the first batch of the debt instrument to investors, who cut across various segments.
The Series 1 paper under its N100 billion Medium Term Note Programme registered with the Securities and Exchange Commission (SEC) had N23 billion allotted to bond investors at 14.40 per cent with a maturity of five years.
The bond was designed to make sustainable capital available to Micro, Small, and Medium-Scale Enterprises (MSMEs) operating in the country.
The bank had planned to raise N20 billion, but overall subscriptions totalled N25.37 billion or 1.26 times more than that amount. With eligible bids totalling N23 billion, the Series 1 Bond was offered at a clearing coupon of 14.40 per cent.
DLM Capital, a foremost development investment banking institution, acted as the lead issuing house and financial adviser to the transaction through one of its subsidiaries, DLM Advisory.
“DLM Capital Group is proud to have led this historic transaction which marks the debut bond by the Development Bank of Nigeria, reflecting the strong credit quality of the issuer as well as the resilience of the Nigerian capital markets, despite the current global market volatility,” the chief executive of DLM Capital Group, Mr Babatunde Sonnie Ayere, said.
Also commenting, the Vice President for Investment Banking at DLM Advisory Limited, Mr Nwabu Okonkwo, said the bond offering was favourably accepted by the market and attracted participation from a wide variety of investors, including domestic pension funds, asset managers, and insurance companies.
On his part, the chief executive of DBN, Mr Tony Okpanachi, noted that the lender’s main goal as an institution is to reduce the financial constraints faced by MSMEs and small businesses in Nigeria by providing financing and partial credit guarantees to qualified financial intermediaries on a market-conforming and fully financially sustainable basis.
Other firms involved in the deal were Standard Chartered Capital & Advisory Nigeria Limited, Agusto & Co., Deloitte & Touche, KPMG, Meristem Registrars & Probate Services Ltd., Zenith Bank Plc, Access Bank Plc, First City Monument Bank, Olaniwun Ajayi LP, G. Elias & Co., DLM Trust Company, ARM Trustees, GCR Ratings, and others.
