Nigerian Update: Sterling Bank lists ₦33b investment bond on NSE, FMDQ

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Nigerian Update: Sterling Bank lists ₦33b investment bond on NSE, FMDQ

Sterling Bank Plc has simultaneously listed the Sterling Investment Management SPV PLC ₦32.90 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 per cent 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 at its heart, which include Health, Education, Agriculture, Renewable energy and Transportation, because of the strong belief that this will positively impact the society.

Speaking at the NSE and FMDQ, the Managing Director and Chief Executive of Sterling Bank, Abubakar Suleiman, said the success of the bond reflected the increasing appetite of local institutional investors for long-term debt instruments.He noted that investors 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 for 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.The Associate Executive Director, Capital Markets, FMDQ, Ms. Tumi Sekoni, congratulated the issuer for having successfully raised ₦32.90 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 listing, quotations and noting service offered by FMDQ, for the second time.  She said the listing would contribute to the growth of the Nigerian corporate bond market, and consistently injecting renewed confidence into the debt market.

The Partner/Head, Investment Banking, Constant Capital Partners Limited,  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 Plc, 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.

The Associate Executive Director, Corporate Development, FMDQ, Ms. Kaodi Ugoji, congratulated the issuer and sponsor of the issue for the remarkable feat in the DCM, and expressed the FMDQ’s gratitude for the issuer’s decision to list the bond on FMDQ. According to her, being listed on FMDQ will avail the bond unprecedented market transparency, unrivalled information disclosure, efficient price formation and improved global visibility, among other benefits.

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