The N20 billion bond issuance, according to the executive of the wholesale lender, was oversubscribed to the tune of 15 per cent – a demonstration of the bank’s market acceptance.
It is the first local funding-raising outing of the bank, which is majorly funded by institutional foreign and local shareholders. The ban had disbursed over N631 billion to more than 313,000 MSMEs through its partners as of December 2022. The value was a modest increase from N482 billion disbursed in 2021.
The fresh fund raised by the bank is targeted at increasing the performance as it would be used to expand its capacity to provide funding for the critical sector.
Managing Director of DBN, Tony Okpanachi, noted that the issuance was the bank’s first local raise since it began operation. Speaking at the signing ceremony in Lagos, Okpanachi said: “So we have mobilised capital from outside the shore of Nigeria. That was the first step. As an institution going forward, we will also be able to catalyse some fundraising within the economy itself to lend to the MSMEs.
Executive Director and Chief Financial Officer of the bank, Ijeoma Ozulumba, said the fund would likely benefit about 20,000 small businesses.