Nova Merchant Bank Limited is seeking to raise up to N10 billion 7-year Fixed Rate Subordinated Unsecured Bonds under its N50 billion debt issuance programme. The bond has a yield of from 12 per cent to 12.50 per cent. The offer, which opened on June 30, will close on July 8, 2020.
According to the bank, it will use the proceeds from the bond issuance to invest in long-term risk assets, as 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(CBN).
Nova Merchant Bank Limited is a licensed merchant bank in Nigeria rated BBB by Agusto & Co. and A+ by Datapro. The bank held its annual general meeting (AGM) in May, where its chairman, Phillips Oduoza, noted that the bank reported a significant improvement in all the key financial indices compared to 2018 achievements.
He attributed the growth to the successful execution of the 2019 strategic plan in line with the key strategic pillars to position the bank as a market leader by 2025.
"While we acknowledge the present macro-economic landscape and its concerns, and even though we see that the situation remains very fluid, It is our firm belief that the COVID-19 crisis will also result in several opportunities for the Bank, as industry dynamics evolve," Oduoza said.
He assured the shareholders that the bank will continue to focus on digital banking, provision of long-term funding, wholesale and investment banking while maintaining a lean operating philosophy.
Also speaking, the Managing Director/Chief Executive Officer, Mr. Anya Duroha said, 2019 was the year in which the bank's business made major leaps due to the resilience and commitment of our employees.