This approval by the Exchange’s Board Listings and Markets Committee reinforces FMDQ Exchange’s position as the preferred platform for innovative debt structures that serve both investor requirements and issuer funding needs.

DLM SPV PLC (“DLM SPV” or “the Issuer”), a special purpose vehicle established to facilitate structured financing arrangements, represents an innovative approach to capital mobilisation within Nigeria’s evolving financial landscape.

The dual-tranche issuance structure provides investors with differentiated risk-return profiles while enabling efficient capital deployment.

The net proceeds from this Notes issuance, sponsored by DLM Advisory Services Limited, a Registration Member (Listings) of FMDQ Exchange, will be utilised in accordance with the terms of the underlying transaction structure to support productive economic activities aligned with the Issuer’s strategic objectives.

Commenting on this listing, Dr. Sonnie Ayere, group chief executive officer, DLM Capital Group, stated,

“The listing and premium pricing of the DLM Series 1 Tranche A Bond at ₦112.14 making it the most valuable AAA corporate bond in Nigeria is a defining milestone, not just for DLM Capital Group, but for the evolution of Nigeria’s fixed income market.

Achieving AAA/AAA credit ratings from Global Credit Rating and DataPro Limited, and commanding benchmark pricing, underscores the market’s recognition of its robust credit structure, disciplined risk framework, and sovereign-level credit protection underpinning the instrument. This transaction validates our strategy of engineering high-quality, de-risk investment products that attract deep domestic capital.

It also sets a new reference point for how structured corporate issuances can be priced when backed by strong credit fundamentals and investor confidence. Building on this momentum, DLM is strategically positioned to expand its issuance, deepen liquidity across future Series and continue delivering innovative, high-quality instruments that strengthen the Nigerian capital markets while creating sustainable value for investors.”

Also commenting, Mr. Nwabu Okonkwo, managing director, Investment Banking, DLM Advisory Limited, stated,

“DLM Advisory Limited is delighted to have acted as Financial Adviser, Transaction Structurer and Joint Issuing House on the ₦7.30billion Series 1 Tranche A 40.62% Hold-To-Maturity Returns and ₦1.70billion Tranche B 19.07% Plain Vanilla Returns Sovereign Bond-Backed Composite Notes issued by DLM Funding SPV PLC and promoted by DLM Capital Group. The promoter’s solid corporate profile and strong credit rating of the bond were evident in the pricing and subscription of the Series 1 issuance.”

FMDQ Exchange continues to play a leading role in fostering a dynamic and inclusive capital market that accommodates both conventional and structured financing instruments.

By maintaining a robust regulatory framework, promoting operational excellence, and ensuring market transparency, the Exchange remains committed to facilitating capital formation that supports infrastructure development, sectoral diversification, and sustainable economic growth across Nigeria.

FMDQ Group PLC (“FMDQ Group”) is Africa’s first vertically integrated financial market infrastructure (“FMI”) group, strategically positioned to provide registration, listing, quotation and noting services for financial markets securities; an integrated trading platform, clearing & central counterparty, and settlement services for financial markets transactions; depository of securities, as well as data and information services, across the debt capital, derivatives and equity markets, among others, through its wholly owned subsidiaries, FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited.

As a sustainability-focused FMI group, FMDQ Group, through FMDQ Exchange, operates Africa’s premier Green Exchange, FMDQ Green Exchange – positioned to lead the transition towards a sustainable future.

This new bond structure, described as a first-of-its-kind public market instrument, blends the principal and interest protection of Federal Government of Nigeria (FGN) Bonds with the yield-enhancing cash flows of diversified consumer and SME loans.

Rated AAA and offering an attractive Hold-to-Maturity (HTM) yield of 49.9%, the DLM Capital’s SBCNs present a dual-engine investment strategy that bridges sovereign safety with private sector performance.

Dr. Sonnie Ayere, chairman of DLM Capital Group, speaking at a press conference where the novel business idea was unveiled, disclosed that the instrument was designed to facilitate financial inclusion by unlocking credit for underserved markets in the country.

He said,

“The Sovereign Bond Backed Composite Notes is focused on de-risking the Nigerian financial market to attract pension funds, development finance institutions and asset managers. It will support Nigeria’s non-oil GDP diversification through credit expansion.”

“We believe that the consistent issuance of SBCNs by qualified entities will play a key role in de-risking corporate bond portfolios. By blending sovereign-backed security with enhanced yield exposure, portfolio managers gain a rare opportunity to simultaneously increase portfolio safety and performance,” he added.

“DLM’s SBCNs are not just bonds — they are a bridge between safety and performance,” said a spokesperson from the firm. “By integrating sovereign and private sector credit engines into one tradable structure, it redefines the frontier of income investing.”

Backed by an SPV structure to ensure asset and liability ringfencing, the bonds are positioned for institutional portfolios, particularly pension funds, DFIs, and asset managers seeking enhanced yield within stringent risk parameters.

The initiative is also expected to support Nigeria’s financial inclusion goals and non-oil GDP diversification through expanded access to consumer and SME credit.

Market analysts see this innovation as a critical advancement in capital market instruments, especially within frontier economies where risk-adjusted returns have traditionally been harder to structure effectively.

The issuance signals a transformative step in leveraging capital markets for broader economic impact, enabling safer, high-yield investments while catalyzing growth in Nigeria’s underbanked and high-growth sectors.

Why is DLM’s SBCNs Unique?

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