Highlights of DLM Capital Group
- DLM Capital Group has launched Nigeria’s first ₦30 billion Sovereign Bond-Backed Composite Notes (SBCNs).
- The notes are AAA-rated, 10-year tenure, and offer a 47.07% hold-to-maturity yield.
- This innovation blends the security of FGN bonds with the returns of private credit—ideal for pension funds, DFIs, and asset managers.
- It opens de-risked investment into consumer credit and MSMEs—bridging Nigeria’s financial inclusion gap.
DLM Capital Group, a leading development investment bank that provides innovative solutions to economic and social developmental problems that impact the everyday lives of people, has issued a pioneering ₦30 billion Series-1 Sovereign Bond Backed Composite Notes (SBCNs) through its DLM Funding SPV Plc, marking a major innovation in Nigeria’s and potentially the global debt capital markets.
This new bond structure, described as a first-of-its-kind public market instrument, blends the principal and interest protection of Federal Government of Nigeria (FGN) bonds with the yield-enhancing cash flows of diversified consumer and SME loans.
Rated AAA and offering an attractive Hold-to-Maturity (HTM) yield of 47.07%, DLM Capital’s SBCNs present a dual-engine investment strategy that bridges sovereign safety with private sector performance.
Dr. Sonnie Ayere, chairman of DLM Capital Group, speaking at a press conference where the novel business idea was unveiled, disclosed that the instrument was designed to facilitate financial inclusion by unlocking credit for underserved markets in the country.
He said,
“The Sovereign Bond Backed Composite Notes is focused on de-risking the Nigerian financial market to attract pension funds, development finance institutions and asset managers. It will support Nigeria’s non-oil GDP diversification through credit expansion.”
Backed by an SPV structure to ensure asset and liability ringfencing, the bonds are positioned for institutional portfolios, particularly pension funds, DFIs, and asset managers seeking enhanced yield within stringent risk parameters.
The initiative is also expected to support Nigeria’s financial inclusion goals and non-oil GDP diversification through expanded access to consumer and SME credit.
Market analysts see this innovation as a critical advancement in capital market instruments, especially within frontier economies where risk-adjusted returns have traditionally been harder to structure effectively.
The issuance signals a transformative step in leveraging capital markets for broader economic impact, enabling safer, high-yield investments while catalyzing growth in Nigeria’s underbanked and high-growth sectors.
What Makes DLM’s SBCNs Unique?
Leave a Reply