DLM Capital Group Acts As Lead Issuing House, Financial Adviser For Development Bank Of Nigeria Debut Bond Issuance

For the Development Bank of Nigeria’s first bond issue, Prominent development investment banking institution, DLM Capital served as both the principal issuing house and the financial consultant. Through one of its subsidiaries DLM Advisory, the DLM Capital Group has constructed and provided advice on Nigeria’s first development bond, which was issued by the Development Bank of Nigeria.

The Series 1 ₦23 billion, 14.40% 5-Year Bond under a N100 billion Medium Term Note Programme registered with the Securities and Exchange Commission was designed to make sustainable capital available to Micro, Small, and Medium-Scale Enterprises (MSMEs). On July 13, 2023, the first batch of bonds were issued.

Dr Tony Okpanachi, the managing director and chief executive officer of the bank, commented on the bond issuance and emphasized that DBN’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.

Mr Nwabu Okonkwo, Vice President, Investment Banking at DLM Advisory Limited, said in a statement that 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. The Bank had planned to raise ₦20 billion, but overall subscriptions totalled ₦25.37 billion, or 1.26 times more than that amount. With eligible bids totalling ₦23 billion, the Series 1 Bond was offered at a clearing coupon of 14.40%.

DLM Capital Group GCEO, Mr Babatunde Sonnie Ayere, commented on the transaction in a statement, saying, “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.”

With Standard Chartered Capital & Advisory Nigeria Limited serving as the Joint Issuing House, Agusto & Co., Deloitte & Touche, KPMG, Meristem Registrars & Probate Services Ltd., Zenith Bank Plc, Access Bank Plc, and First City Monument Bank are additional parties. Olaniwun Ajayi LP, G. Elias & Co., DLM Trust Company, ARM Trustees, GCR Ratings, and others are also involved.

About DLM Capital Group:

DLM Capital Group is a Developmental Investment Bank that provides innovative solutions to economic and social developmental challenges that impact the everyday lives of people. Since its inception, the bank has concentrated on creating markets, products, and long-term financing solutions for key sectors of the Nigerian economy that would benefit end customers to improve their well-being. The investment bank comprises subsidiaries in bespoke corporate finance advisory, trustee, asset management, and securities trading arms, to sovereign/sub-sovereign entities as well as private & non-private corporations. The bank thrives on funding sectors of the Nigerian economy using innovative financing techniques, in particular, securitization and other structured finance techniques.