NOVA Merchant Bank, a leading merchant bank in Nigeria, has announced
the successful issuance of its N10 billion 7-Year Subordinated Unsecured
Bond under its N50 billion debt issuance programme. The transaction
represents NOVA’s first bond issuance in the debt market and was
oversubscribed by 300 percent.
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.
In spite of volatility in markets due to COVID-19 pandemic, the
transaction was highly demanded with a diversified order book made up of
discerning investors including asset managers, insurance companies,
domestic pension funds, non-financial institution corporates, high net
worth individuals as well as international fund managers.
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.
He said, “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 added that the bank is well-positioned to fulfill its promise to
focus on providing long-term funding which is critical to the economic
development of the country.
The Bank’s Managing Director, Anya Duroha said, “The resounding success
of this bond offer helps us achieve our goal to re-establish merchant
banking as a key economic driver by providing long-term funds. It will
also help us better meet the financing needs of our 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.