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BANKING AND FINANCE

Sterling Bank Lists N33bn Bonds On NSE, FMDQ

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Sterling Bank Plc has simultaneously listed the Sterling Investment Management SPV Plc N32.90 billion Series 2 on FMDQ OTC Securities Exchange and the Nigerian Stock Exchange (NSE.)

The bond, which is unsecured with a tenor of seven years at a fixed rate of 16. 50 percent, is part of a N65 billion Debt Issuance Programme of the bank to enable it finance its new business strategy and digital banking.

Under the new business strategy, Sterling Bank will build expertise in the sectors that at its heart. They include Health, Education, Agriculture, Renewable energy and Transportation because of the strong belief that this will positively impact the society where it is operating.

Speaking at the NSE and FMDQ, yesterday in Lagos, at the listing of the bond, managing director and chief executive of Sterling Bank, Mr. Abubakar Suleiman, said the success of the bond reflected the increasing appetite of local institutional investors for long term debt instruments, remarking that “they are happy with the very strong outcome which shows investors’ confidence in Sterling Bank and further strengthens and diversifies our corporate funding strategy.”

He said the bank looked forward to same peerless support in its future bond issues and appreciated FMDQ for its strategic role in deepening the Nigerian DCM by facilitating active secondary market trades and promoting the transparency of the listed instruments. 

Suleiman also appreciated stockbrokers for supporting the bank, adding that share price has reflected the true value of the bank.

Associate executive director, Capital Markets, FMDQ, Ms. Tumi Sekoni, in her address of welcome congratulated the issuer for having successfully raised N32.90 billion from the Nigerian debt market.

She also commended the issuer for yet again joining the league of corporate entities whose debt profiles have been raised via the value-packed  listings and quotations, noting that the listing  would  contribute  to  the  growth  of  the  Nigerian  corporate  bond  market.

Also, partner, head of  Investment Banking, Constant Capital Partners Limited, Mr. Niyi Omojola said: “Constant  Capital,  the  lead  issuing  house  in  this  transaction,  crafted  a  unique  and  innovative investment structure which enabled the  Sterling SPV Bond share in the same investment grade rating as Sterling  Bank,  thereby enlarging  the  range  of  potential  investors  in  the  bond. 

He said the innovative structure, protects investors by providing bond-backed credit enhancement while investing in the Tier II capital of Sterling Bank Plc, saying that as a result of the compelling proposition offered by Sterling Bank and the structuring and distribution efforts of Constant Capital, the transaction was extensively oversubscribed.

Omojola also said the innovation has allowed investors benefit from an enhanced rating, while providing Tier II capital to Sterling Bank.

Associate executive director,  Corporate  Development,  FMDQ,  Ms.  Kaodi  Ugoji, said being listed on FMDQ will avail the bond unprecedented market transparency, unrivalled information disclosure, efficient price formation and improved global visibility, among other benefits.

She reiterated the FMDQ’s commitment to continually align its initiatives towards serving and providing the much-needed support to the players in the DCM.

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