In an email to investors, Afrinvest Capital has announced the issuance of the DLM Capital Group Limited N5 billion Series 10 and 11 Commercial Paper Notes under its N20 billion CP Issuance Programme. According to the email, the proceeds are to fund the working capital requirements of two subsidiaries of the DLM Capital Group, CitiHomes Finance Company, and Links Microfinance Bank.
The issuer, DLM Capital Group Limited is a development investment bank and a diversified financial services institution domiciled in Lagos. The Group currently consists of seven (7) operating subsidiaries regulated by the Securities and Exchange Commission (SEC) or Central Bank of Nigeria (CBN), and they are DLM Advisory Limited, SoFRI Digital Bank powered by Links Microfinance Bank Limited, CitiHomes Finance Company Limited, DLM FX Trading Limited, DLM Trust Company Limited, DLM Securities Limited and DLM Asset Management Limited. And in 2021, the company DLM Capital Group was recognized as the “Best Development Finance Company in Nigeria” by the Global Banking and Finance Review magazine.
The new commercial papers note issuance is the latest in a series of commercial papers issuance that started in September 2022. Series 10 and 11 Commercial Papers have tenors of 180 days and 268 days respectively, and the target size of both notes is N5 billion. The discount rate for both commercial papers is 16.3213% and 16.8661% respectively while the implied yield for both papers is 17.7500% and 19.2500% respectively.
The opening date for the offer issuance is the 11th of January 2023, while the closing date is the 17th of January 2023. The allotment date is the 17th of January 2023, and the settlement date is the 18th of January 2023. The maturity date for Series 10 is set for July 17, 2023, and the maturity date for Series 11 is set for October 13, 2023. And minimum subscription for either commercial paper is N5 million.
DLM Capital Group is given a long-term rating of ‘A‘ and a short-term rating of ‘A1’ by DataPro. The group was also given a short-term issuer rating of ‘A3’ and a stable outlook by GCR.
About DLM Capital Group Limited
DLM Capital Group offers general financial and investment banking-related services via its subsidiaries above which provide, corporate finance advisory, asset management, trust services, securities trading and forex dealing. The Group also has a Fintech company which includes a full-service digital bank that provides general banking services to retail consumers. This also includes payment services and retail credit. Finally, the Group has a finance company that provides advances to mid-sized corporate businesses.
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The group is led by Sonnie Babatunde Ayere, who previously worked with the International Finance Corporation, NatWestBank London, and HSBC, London. The late Ambassador Ademola Seriki who was Nigeria’s ambassador to Spain also served as the Chairman of the company’s Board of Directors till his death.
DLM Capital Group has displayed a strong financial performance over the past years. The company recorded gross earnings of about N4.8 billion in 2021, and in the first quarter of 2022, the company recorded a profit before tax of about N1 million.