The payment, delivered in line with the transaction’s expected cashflow profile, provides early validation of the robustness, credit integrity, and cashflow reliability of the SBCN structure.

Issued by DLM Funding SPV Plc under its ₦30.00 billion Medium-Term Notes Programme, the Series 1 issuance comprises, ₦7.30 billion Tranche A Notes offering a 40.62% Hold-to-Maturity return; and ₦1.70 billion Tranche B Notes offering a 19.07% return

The Notes were subsequently listed on FMDQ Exchange, with the Tranche A instrument now representing  the most valuable AAA-rated corporate bond in the Nigerian capital markets.

The SBCN structure, developed by Dr. Sonnie Babatunde Ayere, group chief executive officer of DLM Capital Group, introduces a differentiated fixed income product that combines sovereign bond collateralisation with structured cashflow engineering to deliver enhanced risk-adjusted returns.

At issuance in July 2025, the transaction attracted measured market scrutiny, as is typical for innovative instruments.

Notably, the Notes achieved a transition from the sponsor’s BBB- rating profile at issuance to AAA ratings on the instrument by both Global Credit Ratings (GCR) and DataPro Limited, reflecting the strength of the structural enhancements, credit protections, and underlying asset quality.

Six months post-issuance, the successful delivery of the first principal and coupon payment represents a critical inflection point, demonstrating that the structure performs not only in design, but in execution.

The SBCNs are specifically designed to prioritise, Capital preservation, Predictable cashflow generation, Liquidity support mechanisms and Enhanced yield relative to comparable risk instruments

This combination has begun to resonate strongly with institutional investors seeking high-quality fixed income exposure in an evolving macro and yield environment.

Investor reception has strengthened following this first payment cycle, with increasing recognition of the SBCNs as a credible, de-risked, and performance-oriented instrument backed by a proven structuring platform and disciplined execution.

As market interest builds toward Series 2, the SBCN programme is increasingly positioned not merely as a successful issuance, but as a new benchmark for structured fixed income innovation in Nigeria’s debt capital markets.

In line with its mandate as a Development Investment Bank, DLM Capital Group remains committed to designing and delivering institutional-grade financial solutions that deepen capital markets, expand investor access to high-quality instruments, and support long-term economic development.

Through one of its subsidiaries DLM Advisory, the DLM Capital Group has constructed and provided advice on Nigeria’s first development bond, which was issued by the Development Bank of Nigeria.

The Series 1 ₦23 billion, 14.40% 5-Year Bond under a N100 billion Medium Term Note Programme registered with the Securities and Exchange Commission was designed to make sustainable capital available to Micro, Small, and Medium-Scale Enterprises (MSMEs). On July 13, 2023, the first batch of bonds were issued.

Dr. Tony Okpanachi, the managing director and chief executive officer of the bank, commented on the bond issuance and emphasized that DBN’s main goal as an institution is to reduce the financial constraints faced by MSMEs and small businesses in Nigeria by providing financing and partial credit guarantees to qualified financial intermediaries on a market-conforming and fully financially sustainable basis. 

Mr. Nwabu Okonkwo, Vice President, Investment Banking at DLM Advisory Limited, said in a statement that the bond offering was favorably accepted by the market and attracted participation from a wide variety of investors, including domestic pension funds, asset managers, and insurance companies.

The Bank had planned to raise ₦20 billion, but overall subscriptions totaled ₦25.37 billion, or 1.26 times more than that amount. With eligible bids totaling ₦23 billion, the Series 1 Bond was offered at a clearing coupon of 14.40%.

DLM Capital Group GCEO, Mr. Babatunde Sonnie Ayere, commented on the transaction in a statement, saying, “DLM Capital Group is proud to have led this historic transaction which marks the debut bond by the Development Bank of Nigeria, reflecting the strong credit quality of the issuer as well as the resilience of the Nigerian Capital markets, despite the current global market volatility.”

With Standard Chartered Capital & Advisory Nigeria Limited serving as the Joint Issuing House, Agusto & Co., Deloitte & Touche, KPMG, Meristem Registrars & Probate Services Ltd., Zenith Bank Plc, Access Bank Plc, and First City Monument Bank are additional parties. Olaniwun Ajayi LP, G. Elias & Co., DLM Trust Company, ARM Trustees, GCR Ratings, and others are also involved.

This brings the total redemptions under the ₦20Billion Commercial Paper Issuance Programme to over ₦8.95Billion since inception.

A statement signed by Mr. Sonnie Ayere, the GCEO of DLM Capital Group, reads:

“We are pleased to have fully repaid all the investors since inception till date without default. We thank all the investors for their participation and reiterate our commitment to be a counterparty that can be relied on for the long term.” He further added that “these redemptions reflect DLM’s capacity to meet its financial obligations as and when due, whilst looking to further strengthen the relationship with our investors as a responsible and dynamic issuer.”

DLM Capital Group is an investment grade company comprising the following businesses: retail banking via our digital banking channel Sofri; consumer and mid-corporate lending; asset management; investment banking; trustees; securities trading; and foreign exchange.

Shile Akinjo, a corporate finance associate at DLM Capital, started SACF in 2022 to support low-income families and the less privileged to fight poverty, receive decent health care, and achieve a basic education.

The “Love Feast on the Street” was held on the 17th of December 2022 to celebrate Christmas with over 400 kids at Makoko Slum, Yaba, Lagos.

The day’s highlights include face painting, a dance competition, popcorn, food, drinks, and the gifting of party packs to the kids.

The “Back-to-School Project” was held on the 20th of January 2023, at The Light School and Boanerges School at Akesan, Alimosho, local government. All the pupils in basic 1–5 were given school supplies such as school bags, socks, notebooks, pencils, biros, erasers, rulers, crayons, water bottles, and snacks.

Shile Akinjo commented on the initiative, stating, “Happiness is as essential as food if a child is to develop into normal manhood or womanhood.” Being able to put smiles on these kids’ faces is fulfilling, and we will continue to carry out initiatives that support these goals. I am grateful to Mr. Sonnie Ayere and DLM Capital Group for their full commitment to these projects. I feel lucky to work for a company that supports and encourages its employees to do good things for the community.

In a statement highlighting DLM’s sponsorship of the projects, Chinwendu Ohakpougwu, Head of Corporate Communications, said: “At DLM, we are committed to impacting human lives. The management of DLM will continue to support good causes that promote the welfare of others.”