NOVA Merchant Bank, has announced the successful issuance of its N10 billion 7-Year Subordinated Unsecured Bond under its N50 billion debt issuance programme. The transaction was NOVA’s first bond issuance in the debt market and was oversubscribed by 300 percent.

The offer which opened on June 30, 2020 following relevant approvals from the Securities & Exchange Commission(SEC) and the Central Bank of Nigeria (CBN), closed on July 8, 2020 with a bond yield guidance of 12 percent to 12.50 percent.

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In spite of market volatility due to COVID-19 pandemic, the transaction was highly demanded with a diversified order book made up of discerning investors including asset managers, insurance companies, domestic pension funds, non-financial institution corporates, high networth individuals as well as international fund managers.

The lead issuing house, United Capital Plc, described the transaction as unprecedented, while the joint issuing houses Stanbic IBTC Capital, UCML Capital Limited, Emerging Africa and Greenwich Trust Limited, jointly stated it was a remarkable deal. This is one of the major corporate bond issuances by a Merchant Bank in Nigeria’s capital market, thus reflecting NOVA’s strong credit quality as well as the resilience of its business model despite current global challenges. NOVA Merchant Bank chairman, Mr. Phillips Oduoza, expressed excitement over the success of the company’s debut issue as it places the Bank on a firm footing to achieve its short-term and long-term goals.