DLM SPV Lists N9 Billion AAA-Rated Medium-Term Notes on FMDQ Exchange
In a significant development for Nigeria's financial sector, FMDQ Securities Exchange Limited has granted approval for the listing of N9.00 billion Medium-Term Notes issued by DLM SPV PLC. This move underscores a pivotal moment in the corporate bond market, reinforcing FMDQ's role as a premier platform for innovative debt instruments and highlighting growing investor confidence in structured financing solutions.
Details of the Listing and Issuance Structure
The listing comprises two tranches: N7.30 billion Series 1 (Tranche A) and N1.70 billion Series 3 (Tranche B) Plain Vanilla Returns Sovereign Bond-Backed Composite Notes. These are issued under DLM SPV PLC's broader N30.00 billion Medium-Term Notes Programme. The approval was granted by the Exchange's Board Listings and Markets Committee, reflecting a strategic approach to capital mobilisation within Nigeria's evolving financial ecosystem.
DLM SPV PLC, established as a special purpose vehicle to facilitate structured financing arrangements, represents a modern method for raising capital. The dual-tranche issuance offers investors differentiated risk-return opportunities while supporting the efficient deployment of funds into productive economic activities aligned with the issuer's strategic goals.
Premium Pricing and AAA Credit Ratings
Dr. Sonnie Ayere, Group Chief Executive Officer of DLM Capital Group, commented on the listing, describing it as a defining moment for Nigeria's fixed income market. He noted that the Series 1 Tranche A Bond was priced at N112.14, making it the most valuable AAA corporate bond in Nigeria. This bond achieved AAA credit ratings from Global Credit Rating and DataPro Limited, reflecting strong investor confidence in its robust credit structure and sovereign-level protection framework.
Ayere stated, "This transaction validates our strategy of engineering high-quality, de-risked investment products capable of attracting deep domestic capital while setting new benchmarks for structured corporate issuances." He added that DLM plans to expand future issuances and deepen market liquidity, positioning the company to deliver innovative instruments that strengthen the Nigerian capital markets.
Role of DLM Advisory and FMDQ's Commitment
Mr. Nwabu Okonkwo, Managing Director of Investment Banking at DLM Advisory Limited, revealed that the firm acted as Financial Adviser, Transaction Structurer, and Joint Issuing House for the notes issuance. He attributed the successful pricing and subscription levels to the promoter's strong corporate profile and credit rating.
FMDQ Exchange reiterated its commitment to fostering a dynamic and inclusive capital market that accommodates both conventional and structured financing instruments. The Exchange emphasized that its regulatory framework, operational standards, and transparency initiatives continue to support capital formation, infrastructure financing, and sustainable economic development across Nigeria.
Background on FMDQ Group and Sustainability Initiatives
Parent company FMDQ Group PLC operates as Africa's first vertically integrated financial market infrastructure group. It provides a range of services, including registration, listing, trading, clearing, settlement, and data services across debt capital, derivatives, and equity markets through subsidiaries such as FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited, and FMDQ Private Markets Limited.
As part of its sustainability agenda, the Group also operates the FMDQ Green Exchange, aimed at driving sustainable finance and supporting Africa's transition toward a greener economy. This initiative aligns with broader efforts to integrate environmental considerations into financial markets.
