The Development Bank of Nigeria (DBN) has announced its intention to raise N23 billion from local investors. The funds will be used to support Micro, Small & Medium Enterprises (MSMEs) as part of the bank’s primary goal. This announcement follows the successful oversubscription of the initial N20 billion issuance under DBN’s N100 billion medium-term note program.
The objective is to increase the capital base of the development finance institution supported by the Federal Government. During the signing ceremony in Lagos, the Managing Director of DBN, Tony Okpanachi, explained that the selection of partners and issuing houses was based on their established track records.
According to his statement, they considered the partners’ track records and expressed a desire to collaborate with more partners. They have confidence in the selected partners’ knowledge of the market and their successful track record in raising bonds for various organizations. As they raise additional funds, they remain open to working with additional partners, emphasizing that the opportunity is not limited to a select few.
The offer documents indicate that the N23bn proceeds will be utilized to expand DBN’s capacity to provide funding to Micro, Small & Medium Enterprises (MSMEs), in line with their core corporate objective. He further clarified that the borrowed funds from development partners and the funds provided to MSMEs are loans, and both will be repaid in due course.
The Executive Director and Chief Financial Officer of DBN, Mrs. Ijeoma Ozulumba, mentioned that the interest rates offered by DBN are affordable. She further stated that as the economy progresses and interest rates become more moderate, the rates on the instrument will also adjust accordingly.
