Nova Merchant Bank N10bn Bond Over Subscribed By 300%
By Our Correspondent
Nova Merchant Bank, one of the leading merchant banks in the country has announced the successful issuance of its N10 billion, 7- year Subordinated Unsecured Bond under its N50 billion debt issuance programme.
The transaction which represents Nova’ s first bond issuance in the debt market was 300 per cent oversubscribed.
The offer which opened on June 30, 2020 following relevant approval from the Securities & Exchange Commission(SEC) and the Central Bank of Nigeria (CBN), closed on July 8, 2020 with a bond yield guidance of 12 percent to 12.50 percent.
The lead issuing house, United Capital Plc, described the transaction as unprecedented while the joint issuing houses Stanbic IBTC Capital, UCML Capital Limited, Emerging Africa and Greenwich Trust Limited jointly stated it was a remarkable deal.
This is one of the major corporate bond issuances by a Merchant Bank in Nigeria’s capital market, thus reflecting NOVA’s strong credit quality as well as the resilience of its business model despite current global challenges.
The Chairman, NOVA Merchant Bank, Mr. Phillips Oduoza expressed excitement over the success of the company’s debut issue as it places the Bank on a firm footing to achieve its short-term and long-term goals.
“The oversubscription of this bond offer is yet another significant milestone in the history of the Bank and represents a vote of confidence by the investment community in the resilience of our business model. We will continue to march forward with confidence in the realisation of our strategic objectives.” Oduoza said.
Oduoza added that the bank is well positioned to fulfil its promise to focus on providing long-term funding which is critical to the economic development of the country.
According to the Bank’s Managing Director, Anya Duroha the resounding success of this bond offer helps Nova Merchant Bank achieve its goal to re-establish merchant banking as a key economic driver by providing long-term funds.
He said the offer will also help us better meet the financing needs of the bank’s clients.
NOVA Merchant Bank Limited is a licensed, investment grade rated merchant bank in Nigeria. It offers an integrated suite of financial solutions covering Wholesale Banking, Investment Banking, Asset Management, Securities Trading, Wealth Management, Trade Services, Deposit Taking, Lending Activities, Transaction Banking, Cash Management and Digital Banking.
