Nova Merchant Bank issues US$26M bond to bolster capital, invest in long-term assets

Nova Merchant Bank issues US$26M bond

NIGERIANova Merchant Bank, one of Nigeria’s premier financial institutions that focuses on wholesale and investment banking, has issued a N10 billion bond (about US$26 million) with an aim of putting the business on a firm footing to achieve its short-term and long-term goals.

Nove Merchant Bank in a statement explained that the US$26 million was a seven-year fixed-rate subordinated unsecured bonds which was issued under its N50bn debt issuance programme.

In line with the regulations of the Securities and Exchange Commission (SEC), the Bond is being issued through NOVAMBL INVESTMENTS SPV PLC, a special purpose vehicle sponsored by Nova Merchant Bank for the purpose of the Bond issuance

According to the statement, the bond has a price range of 12 per cent to 12.50 per cent and the offer would close in early June this year.

The Managing Director/Chief Executive Officer, Nova Merchant Bank, Anya Duroha, expressed the bank’s commitment to creating superior value in the market and keeping customers at the centre of its business.

He said the bond would be invested in long-term risk assets as part of its medium-term growth strategy.

Proceeds of the Bond issue will also serve as Tier-II capital for the Bank, within the requirements of the Central Bank of Nigeria.

According to the statement, the bond, which is issued under the Securities and Exchange Commission-approved N50billion debt issuance programme is callable in five years by the bank.

Nova Merchant Bank Limited is rated BBB by Agusto & Co. and A+ by Datapro and is licensed in Nigeria as a merchant bank.

The Bank offers a portfolio of products and services across Corporate and Investment Banking, Securities Trading and Asset Management, to a clientele comprising top-tier corporates and high net worth individuals.

Earlier this year, Nova Merchant Bank Limited released its audited results for the financial year ended December 31st, 2019, recording impressive performances across its major financial lines.

Specifically, the Bank declared a profit after tax of N1.65 billion (about US$4.26 million) for the 2019 financial year representing an impressive 44% growth compared to N1.15bn (About US$2.97 billion) recorded at the end of the 2018 financial year.

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