The N32.90 billion valued Sterling Investment Management SPV Plc Series 2 bond has been successfully listed on both the Nigerian Stock Exchange, NSE, and the FMDQ OTC Securities Exchange.
The listed bond has a seven-year tenor, and a 16.50% fixed rate. It is, however, unsecured.
According to Sterling Bank’s CEO Mr Abubakar Suleiman, the bond listing is aimed at generating much-needed capital that would facilitate the financing of the tier-2 bank’s newly strategised business goals. He said the business goals cut across sectors such as health, education, agriculture, renewable energy, and transportation.
According to Mr Suleiman, these are critical areas of the economy which require immediate intervention in order to actualise growth/development.
Note that Sterling Bank Plc came up with a N65 billion debt issuance programme dedicated to financing it’s new business strategies. The listed bond is part of it.
“we are pleased to list the sterling spv bond on fmdq.
“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.”
More bond listing in the future
Furthermore, the bank chief had implied that Sterling Bank Plc would be listing more bonds on either the NSE or the FMDQ in the nearest future.
Mr Suleiman specifically appreciated the FMDQ, saying that he expects that his bank would be given the same level of support in the future, when it decides to list more shares.
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The bank has been making money moves
Just yesterday, the bank announced that it has secured a $65 million credit facility from the Arab Bank for Economic Development in Africa (BADEA), through two loan agreements that were signed in Cairo, Egypt.
The funds would also be deployed towards financing private sector projects initiated by the company.
About the bank’s financial performance
Sterling Bank Plc’s third-quarter 2018 shows that revenue grew from N95 billion to N115 billion; representing 21.09%.
In the same vein, profit after tax also increased by 38.1% from N5.9 billion in 2017 to N8.2 billion.
The bank’s stock is currently trading at N2.39.