DLM Capital to raise N5bn from debt market with Series 3, 4 CP issuance

DLM Capital Group Limited is set to hit the debt capital market to raise N5 billion through the issue of Series 3 and Series 4 commercial papers (CP) notes under its N20 billion CP issuance programme.

The deal is sponsored by Afrinvest Capital Limited as the lead arranger with the participation of FBNQuest Merchant Bank Limited, DLM Advisory Limited and UCML Capital Limited.

DLM Capital Group as a development investment bank and, a diversified financial services institution, has been in the forefront of creating alternative funding solutions for businesses, providing bespoke and innovative financing for a variety of economic sectors across the country.

According to an information note seen by Business a.m., the group places a strong emphaNINE sis on driving sustainable development of the Nigerian economy by focusing its expertise on key sectors such as agriculture, general business finance, consumer credit, housing, transportation, infrastructure, and education in line with its chosen development mandate to help reduce poverty and improve the living conditions of Africans as a whole.

According to the company, the notes have a tenor of 180 days and 270 days, respectively, with 11.3295 percent and 11.8595 percent discounted interest rates respectively; and implied yields of 12 percent and 13 percent at the end of the tenor.

It also said the proceeds from the capital raise will be used to fund working capital requirements of two subsidiaries of the Group namely: CitiHomes Finance Company and Links Microfinance Bank.

The offer, which opened on Wednesday, February 2, 2022, and will close on Friday, February 11, 2022, has a settlement date scheduled for the same day as the offer closing date.

Meanwhile, the Group has been rated ‘BBB-’ by GCR Ratings and ‘A-’by DataPro.