NOVA CEO Affirms the Bank’s Commitment to Support Economic Growth
Nath Ude, NOVA Merchant Bank Chief Executive
NOVA CEO Affirms the Bank’s Commitment to Support Economic Growth
Nova Merchant Bank Chief Executive Officer, Nath Ude, affirms commitment to provide long-term funding support in critical areas of the Nigerian economy to drive inclusive economic growth.
Nova’s Chief revealed this at the virtual closing gong organised by the Nigerian Exchange (NGX) Ltd to commemorate the successful listing of Nova Merchant Bank’s N10 billion unsecured fixed-rate bond due 2027. The bond is under the company’s N50 billion bond issuance programme, oversubscribed by 300%.
The closing gong ceremony is a specialised platform hosted by the NGX to mark the close of trading, while commemorating events and raising awareness on notable issues of local and global concern.
Ude said the bank would remain committed to long-term funding that would drive economic growth and development.
Ude said, “This listing is for our N10 billion seven years subordinated unsecure bond under our N50 billion debt issuance programme and this over subscription is a huge milestone for us as an institution.
Nath Ude, NOVA Merchant Bank Chief Executive
“It represents among other things, a vote of confidence by the investing community and depicts the resilience of the bank’s strong business model and sustainability to show that we are well positioned to fulfill the promise of providing long-term funding especially on the real sector.
“Which is why we are going into this, we want to be able to match and get into long-term funding to drive the economy and get away from the shortcuts and 90 days/60 days cycle that is common in the market.
“We will continue to align with the stock exchange to drive the economy through much targeted investment opportunities and driving the economy in a manner that is predictable, sustainable and even the investing public will be glad,” he said.
Ude noted that in spite of the volatile nature of the economy, due to the COVID-19 pandemic, the bond issuance got over 300 per cent over subscription.
He said it was a remarkable feat for an institution that was less than four years old and the youngest merchant bank to issue a successful bond in Nigeria.
Ude who appreciated the investing public said the transaction was highly demanded with a diversified subscription made up of investors across asset managers, domestic pension funds, non-financial institutions and corporate organisations, among others.
Mr. Olumide Bolumole, Divisional Head, Listings Business of NGX, said proceeds from the bond would be directed to long-term risk assets.
Bolumole said: “Proceeds from the bond issuance will be invested in long-term risk assets as part of the bank’s medium term strategy and also serve as tier 2 capital for the bank within the requirements of the CBN.’’
“NGX will provide a leading platform for raising capital and facilitating a thriving market for trading securities and also ensure seamless flow of market information to support trading activities for investors and our trading licensed holders.
“We also provide an efficient avenue for investors in multiple assets classes, providing investors with various options including equities and other exchange trade products.
“It is our delight to see issuers take full advantage of the exchange products and services to support their growth story,” Bolumole said.
He called on Nova Merchant Bank to explore other capital raising tools available on the NGX to drive growth and development.
Mr. Peter Ashade, the Chief Executive Officer, United Capital Plc, the lead issuing house to the offer, said that it was a milestone success considering the constrained economic environment.
“This is very key in the light of our positioning as an organisation. The bond got a 300 per cent over subscription despite the very constrained economic environment we find ourselves when the offer was issued and it is quite gratifying that we could get as much as that.
“We wish to express our gratification to the board and management of Nova for the opportunity to serve as the lead issuing house on the landmark transaction. We also thank the regulatory institutions like the NGX and investors,” Ashade said.
NOVA CEO Affirms the Bank’s Commitment to Support Economic Growth
TAGSNOVA Merchant Bank Limited
