STERLING Bank Plc, Nigeria’s leading commercial bank has simultaneously listed the Sterling Investment Management SPV PLC N32.90 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% is part of a N65 billion Debt Issuance Programme of the bank to enable it to finance its new business strategy and digital banking.
Under the new business strategy, Sterling Bank will build expertise in the sectors that at its heart. They include Health, Education, Agriculture, Renewable energy and Transportation because of the strong belief that this will positively impact the society where it is operating.
Speaking at the NSE and FMDQ, Mr Abubakar Suleiman, Managing Director and Chief Executive said, “We are pleased to list the Sterling SPV Bond on FMDQ.
He added that the success of the bond reflected the increasing appetite of local institutional investors for long term debt instruments, remarking that they are happy with the very strong outcome which shows investors’ confidence in Sterling Bank Plc and further strengthens and diversifies our corporate funding strategy.
He said the bank looked forward to same peerless support in 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.
Also speaking, Ms Tumi Sekoni, Associate Executive Director, Capital Markets, FMDQ, in her address of welcome 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 listings, quotations and noting service offered by FMDQ, for the second time.
She noted that the listing would contribute to the growth of the Nigerian corporate bond market, consistently injecting renewed confidence into the debt market and assured stakeholders that FMDQ would continue to innovate and provide efficient services, as may be necessary, to support issuers and investors, towards achieving a globally competitive and operationally excellent debt market.
In his contribution, Mr Niyi Omojola, Partner, Head of Investment Banking, Constant Capital Partners Limited remarked that, “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. As a result of the compelling proposition offered by Sterling Bank PLC and the structuring and distribution efforts of Constant Capital, the transaction was extensively oversubscribed.
Omojola also said the innovation has allowed investors to benefit from an enhanced rating while providing Tier II capital to Sterling Bank Plc.
Ms Kaodi Ugoji, Associate Executive Director, Corporate Development, FMDQ, in her closing remarks, congratulated the issuer and sponsor of the issue on this 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.
She reiterated the FMDQ’s commitment to continually align its initiatives towards serving and providing the much-needed support to the players in the DCM.
Besides senior officials of Sterling Bank, the event was also attended by officials Constant Capital Markets & Securities Limited (Constant Capital), representatives from the Joint Issuing Houses, Cardinal Stone Partners Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited, as well as the solicitor to the listing, G. Elias & Co amongst others.