DLM Capital Unveils N30 Billion Sovereign Bond-Backed Investment Notes.
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- DLM Capital Unveils N30 Billion Sovereign Bond-Backed Investment Notes.
DLM Capital Unveils N30 Billion Sovereign Bond-Backed Investment Notes.
DLM Capital Group has launched a new investment product the N30
billion Series-1 Sovereign Bond-Backed Composite Notes (SBCNs). This 10-year instrument is designed to provide high-yield returns backed by federal government bonds, with a Hold-to-Maturity (HTM) yield of 49.9% and a top-tier AAA rating.
The SBCNs combine the security of government-backed bonds with returns from diversified consumer and small business loans. According to DLM, this structure offers investors a rare blend of safety and performance and represents a global first in public bond innovation.
Speaking during the launch in Lagos, Group CEO Dr. Sonnie Ayere said the product aims to expand credit access to underbanked sectors and support financial inclusion, particularly for SMEs and consumers. He noted that by merging sovereign bond guarantees with private sector loan cash flows, the notes offer portfolio managers a safer and more profitable investment option.
Dr. Ayere described the SBCNs as a hybrid product part sovereign bond, part corporate debt structured for public trading and protected through a Special Purpose Vehicle (SPV) to ensure asset security and credit quality.
“This bond isn’t just a financial tool; it’s a bridge between the public and private credit markets, offering twice the returns of standard government or corporate bonds without compromising on risk,” he said.
The product is aimed at institutional investors, such as pension funds and asset managers, who are seeking reliable returns in high-growth sectors. DLM’s internal research identified strong investor interest in consumer and SME lending, prompting the development of the SBCNs over the last two years.
Dr. Babatunde Obaniyi, Managing Director of DLM Global Markets, added that the SBCNs will help improve SME access to funding while strengthening the capital formation process within Nigeria’s financial system.
Proceeds from the bond issuance will be evenly split: 50% invested in Federal Government Bonds and 50% directed toward diversified SME and consumer loans.
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Faith Kegh
Content & Editorial Manager - Leads the creation, review, and publication of high-quality news and media content. She ensures that all editorial work reflects the organization’s standards of accuracy, professionalism, and relevance, while also engaging and informing the audience.
As the key driver of TokinPoint Media LTD's editorial voice, the manager oversees content planning, assigns tasks to writers or editors, enforces deadlines, and ensures consistency across all platforms. She also plays a strategic role in aligning content with audience interests and search engine optimization (SEO) best practices.