Sterling Seeks to Raise N21bn from Bonds Offering at 21%
Sterling Investment Management Special Purpose Vehicle (SPV) is still in the market to seek N21 billion from local investors in the nation’s capital market as part of its borrowing programme.
In a note shared with investors, Afrinvest Capital Limited said the SPV’s ₦21,000,000,000 series 1, 10-Year 21% – 21.25% fixed rate unsecured bonds issuance is part of its ₦30 billion Debt Issuance Programme.
According to Afrinvest, the offering is yielding 21% – 21.25% over a 10-year tenor. The total proceeds from the Offer will be utilized to purchase Notes issued by Sterling Bank Limited – the sponsor of the debt raise.
The investment firm explained that the issuer is a special purpose vehicle incorporated to issue debt securities to the public for the purpose of purchasing debt securities to be issued by Sterling Bank.
It noted that Sterling Investment Management successfully redeemed in August 2023, its ₦7.97 billion Series 1 7-Year 16.5% fixed rate unsecured bonds under the ₦65 billion programme.
The Bank, a subsidiary of Sterling Financial Holdings PLC, operates as a fully licensed commercial bank providing wholesale and retail financial services in Nigeria.
Afrinvest stated that Sterling Bank has ₦2.1 trillion in total assets as at 31st December 2022, the bank ranks as the 9th largest bank in the Nigerian banking industry. Naira Suffers Big, CBN Goes Ballistic Against FX Whales
Over the years, the Sponsor has maintained a good liquidity profile, improved profitability, and strengthened its balance sheet. Sterling Seeks to Raise N21bn from Bonds Offering at 21%
