February 21, 2019

Sterling Bank’s N33bn bond listing to enhance trading in secondary market — Suleiman

Sterling Bank, destitues

By Peter Egwuatu

Sterling Bank Plc has disclosed that the listing of its N32.9 billion bond in both FMDQ platform and Nigerian Stock Exchange, NSE will enhance trading in the secondary market.

The bond which is unsecured with a tenor of seven years at a fixed rate of 16. 50 percent, is part of a N65 billion Debt Issuance Programme of the bank to enable it finance its new business strategy and digital banking.

Speaking at the listing, Managing Director, Sterling Bank Plc, Mr. Abubakar Suleiman, commended the investors  for raising the fund indicating a their confidence in the bank.

He stated: “We are currently investing in financial inclusion in line with the Central Bank of Nigeria, CBN, objective. We have also committed resources in technology, education, health and so on to improve the wellbeing of the people.”

He added that the success of the bond reflected the increasing appetite of local institutional investors for long term debt instruments, remarking that they are happy with the very strong outcome which shows investors’ confidence in Sterling Bank Plc and further strengthens and diversifies our corporate funding strategy.

In his comments, Mr. Niyi Omojola, Partner, Head of   Investment Banking, Constant Capital Partners Limited said: “Constant   Capital, the lead issuing house in this transaction,   crafted a unique and innovative investment structure which enabled the Sterling SPV Bond share in the same investment grade rating as Sterling Bank Plc,  thereby  enlarging the   range of potential   investors in the bond.