Nova Merchant Bank Lists N10 Billion Bond On NGX

Goddy Egene
Nova Merchant Bank Plc leveraged the digital Closing Gong Ceremony of Nigerian Exchange (NGX) Limited to commemorate the listing of its N10 billion Bond last week.
The debt instrument was NOVA MBL Investments SPV Plc N10 billion Series I, 7-year 12 per cent subordinate unsecured fixed rate bond due 2027 under the company’s N5 0billion Bond Issuance Programme.

The Divisional Head, Listings Business, NGX Limited, Mr. Olumide Bolumole, expressed delight at the listing of the bond, which was oversubscribed by 300 per cent.
“The success of the bond is an indication of the level of investor confidence in the company’s reputation, brand and corporate performance. The company’s growth potential is so evident that Nova Merchant Bank emerged as the winner of the Bond Offering of the Year at Business Day and Other Financial Institutions (BAIF) Awards.

“It is our delight to see issuers such as Nova Merchant Bank take full advantage of the NGX’s products and services to support their growth story, and we encourage capital market players to explore other capital raising tools available on NGX to enhance their corporate profile, visibility and sustainability,” he said.

He assured all stakeholders that NGX remained committed to driving sustainable products and safe investments in a market that is orderly and transparent, whilst leveraging cutting edge technology.

Speaking at the ceremony, the Chief Executive Officer/Managing Director, Nova Merchant Bank Plc, Mr. Nath Ude, said: “I must commend the board and management of Nova for this significant milestone. We did not only enjoy an oversubscription of 300 per cent on our bond, we have also become the youngest merchant bank to issue a bond in Nigeria.

“We are very proud of what we have achieved and we believe it represents a vote of confidence by the investment community. The gratitude goes to our stakeholders who invested in this bond despite economic hardships. With this Bond, we are well positioned to provide long term funding especially to the real sector, and we will continue to align with NGX to drive the economy through targeted investment opportunities as an organization offering an integrated suite of financial solutions.”

Also speaking, the Group Chief Executive Officer, United Capital Plc, (Lead Financial Adviser/Issuing House) Mr. Peter Ashade, expressed his gratitude to the board and management of Nova Merchant Bank for the opportunity to serve, and also thanked the regulators, particularly NGX, the joint issuing houses – Stanbic IBTC Capital Limited, Union Capital Markets Limited – and members of the investing public.