NOVAMBL Bond Issuance - NOVA Merchant Bank Limited

We are pleased to inform you that book building has commenced, for a N10 billion issuance of seven-year Fixed Rate Subordinated Unsecured Bonds by Nova Merchant Bank Limited (“NOVA” or the “Bank”), via a funding vehicle – NOVAMBL INVESTMENTS SPV PLC (“NOVAMBL SPV PLC” or “the Issuer”). The Bonds are being issued under a SEC-approved N50 billion Debt Issuance Programme. The issuance opens today, Tuesday 30th June 2020 and is expected to close on Wednesday 8th July 2020.

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% NPL, Gross earnings of N5.8 Billion, Profit after Tax of N1.6 Billion (growing at a CAGR of 48%), and Total Assets of N63.8 Billion, with a Return on Equity of 8.4%.

The Bank 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.

Please find below a summary of the indicative terms of the offer:

Please follow the Link in order to access the following transaction documents:

1. Commitment Form
2. Shelf Prospectus
3. Supplementary Prospectus
4. Series Trust Deed
5. PENCOM Compliance Certificate
6. Sponsor and Issue Rating Reports
7. 2019 Audited Financial Statements
8. Investor Presentation
9. Reporting Accountants’ Report