Nova Merchant Bank has commenced book-building on its N10bn issuance of seven-year fixed rate subordinated unsecured bond in Nigeria.
In line with the regulations of Nigeria’s Securities and Exchange Commission, the bond is being issued through NOVAMBL Investments SPV, a special purpose vehicle sponsored by the bank for the bond issuance.
The bank is issuing the bonds under a SEC-approved N50bn debt issuance programme, which opened on June 30, 2020 and will close on July 8, 2020. It is open to institutional investors and high net-worth individuals who meet the requirements of SEC’s Rule 321.
The licensed merchant bank in Nigeria, which is owned by experienced local and foreign investors, is one of the country’s premium financial institutions. It offers a portfolio of products and services across corporate and investment banking, securities trading and asset management, to a clientele comprising top corporates and high net-worth individuals.
Nova intends to invest the proceeds of the bond in long-term risk assets, as a critical 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.
The bond transaction also represents Nova’s first entry into the Nigerian Debt Capital Markets, with potential for future issuances.