Nova Merchant Bank lists N10bn bond on NGX
By Kayode Tokede
Nova Merchant Bank Plc has listed its N10 billion bond on the Nigerian Exchange Limited (NGX).
The bond is 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.
Speaking at the ceremony, the Divisional Head, Listings Business, NGX Limited, Mr. Olumide Bolumole said, “We are delighted to commemorate the listing of NOVA Merchant Bank Investments SPV N10 billion, 7-years subordinated unsecured series I Bond under its N50 billion debt Issuance Programme on NGX today.
It is worthy to mention that this is Nova Merchant Bank’s first bond issuance which was oversubscribed by 300 per cent, an indication of the level of investor confidence in the company’s reputation, brand and corporate performance.
“We remain committed to driving sustainable products and safe investments in a market that is orderly and transparent, whilst leveraging cutting edge technology.”
He added that in terms of capital formation on the NGX Platform, this year, the exchange has facilitated needed financing of over N4.6 trillion raised by governments and corporates across various asset classes.
“We therefore encourage Nova Merchant Bank to explore other capital raising tools available to our listed companies such as an Equity listing to enhance the company’s corporate profile, visibility and sustainability.”
On his part, the Chief Executive Officer/MD, Nova Merchant Bank Plc, Mr. Nath Ude noted, “It gives me great pleasure to be admitted on the daily official list of the NGX Limited today.
“We offer an integrated suite of financial solutions covering Wholesale Banking, Investment Banking, Asset Management, Wealth Management, Trade Services, Transaction Banking, Cash Management and Digital Banking.
According to him, Datapro reaffirmed recently an ‘A’ rating on the Nova Merchant Bank N10 billion 7-Year Subordinated Unsecured Bond issued under its N50 billion debt issuance programme.
He added, “NOVA Merchant Bank also emerged the winner of the ‘Bond Offering of the Year 2020’ prize at the BusinessDay Bank and other Financial Institutions (BAFI) Awards. The bank clinched the prize for its extremely successful N10 billion seven year subordinated unsecured bond which was oversubscribed by 300 per cent.”
United Capital Plc served as the lead financial adviser and issuing house for the bond listing.
Its Group chief executive officer, Mr. Peter Ashade expressed his appreciation to capital market stakeholders, NGX Limited and other professional parties to the transactions for ensuring a successful debt capital raise.
Other parties to the deal include Stanbic IBTC Capital Limited, Union Capital Markets Limited and other professional parties.
