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Money and Fixed Income

NOVA Investment to issue N50bn bond



The strange yield curve

Stanbic IBTC Stockbrokers has given a heads up regarding imminent commencement of book building, for a N10 billion issuance of seven-year fixed rate subordinated unsecured bond by Nova Merchant Bank Limited (NOVA).

The bond will be issued via a funding vehicle, NOVAMBL INVESTMENTS SPV PLC (NOVAMBL) or simply referred to as the Issuer, is announced on Monday.

The bonds are being issued under a SEC-approved N50 billion debt issuance programme.

Nova Merchant Bank Limited is a licensed merchant bank in Nigeria, which is owned by experienced local and foreign investors.

It offers a portfolio of products and services across corporate and investment banking, securities trading and asset management, to a clientele comprising top-tier corporates and high net worth individuals. The Bank is rated BBB by Agusto & Co. and A+ by Datapro.

Nova has an ambitious vision to be Africa’s preferred financial solutions provider, by creating superior value in the markets they serve.

For the year ended December 31, 2019, the bank recorded 0 per cent non-performing loan (NPL), Gross earnings of N5.8 billion, Profit after Tax (PAT) of N1.6 billion (growing at a CAGR of 48 per cent), and total assets of N63.8 billion, with a return on equity of 8.4 per cent.

The bank also explained that it intends to 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).

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