By Babajide Komolafe
DLM Capital Group has announced the opening of book building for the Series 1 Sovereign Bond-Backed Composite Notes (SBCNs), issued under its ¦ 30 Billion Medium-Term Note Programme, designed to address critical economic needs and deepen Nigeria’s capital markets.
Elaborating on the offer, the company said: “This Innovative offering introduces the world’s first public issuance of Sovereign Bond-Backed Composite Notes—a landmark structure offering investors AAA-rated credit quality and full sovereign credit risk protection, backed by Federal Government of Nigeria (FGN) bond cashflows.
“The Series 1 SBCNs provide a compelling hold-to-maturity (HTM) yield of up to 47.07% per annum, significantly outperforming standard government or other bonds. The offering is open from July 1 to July 14, 2025. The notes, issued by DLM Funding SPV PLC and sponsored by DLM Capital Group, have a 10-year tenor, maturing in 2035, with an average life of 5.5 years. They are rated AAA by both Global Credit Rating (GCR) and DataPro Ratings.”
Speaking at the unveiling ceremony held at DLM Capital Group Headquarters on 18th June 2025, Dr. Babatunde Sonnie Ayere, Group CEO of DLM Capital Group, stated “This bond was created to address the growing demand for innovative, secure, and high-yield investment opportunities in the Nigerian capital markets”.
“Structured under a bankruptcy-remote Special Purpose Vehicle (SPV), the SBCNs protect investors by fully isolating repayment obligations from the financial risks of the sponsor. Proceeds from this issuance will be invested in Federal Government of Nigeria (FGN) bonds and used to finance consumer and SME loans, contributing to inclusive economic growth”, the company said.
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