DLM to unlock credit expansion for MSMEs, underbanked sectors
DLM Capital Group has unveiled N30 billion financial instruments to drive credit expansion in Nigeria’s underbanked sector.
The company emphasised the need to drive more credit expansion into the underserved areas to de-risk market portfolios, protect assets and bonds within the frontiers of emerging markets.
To this end, the company unveiled N30bn Sovereign Bond Backed Composite Notes as a financial instrument to drive credit expansion in Nigeria’s underbanked sectors.
The company also stressed the need to diversify SME and consumer lending, adding that by unlocking credits it will de-risk markets, protect assets, bonds and portfolios.
Speaking at a recent media parley event in Lagos, the chairman of DLM Capital Group, Dr. Sonnie Babatunde Ayere, disclosed that the instrument was designed to facilitate financial inclusion by unlocking credit for underserved markets in the country.
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Sonnie Ayere further reinforced the need to drive financial inclusion by unlocking credits for MSMEs, nano businesses and small-scale enterprises in the country while incentivising businesses with the capital formation process.
He encouraged real sector participation on sovereign bonds while stressing the need to de-risk the market, boost the non-oil economy and securitise assets, bonds and portfolios. He also buttressed the need to improve access to credit for SMEs, by providing nano loans for SMEs, eliminating default risk and bridging risk risk-return market.
Speaking further on the market instruments, Ayere stated that they offer principal protection anchored in sovereign debt markets, return enhancement from Nigeria’s high-growth, low-penetration credit sectors, and portfolio diversification with high liquidity and tradability.
The N30 billion Sovereign Bond-Backed Composite Note to be issued is a 10-year bond with a triple-A rating based on sovereign bond-backed cash flows.
Also speaking, Group Managing Director of DLM Global Markets, Dr. Babatunde Obaniyi, in his remarks, noted that the financial instrument addresses the issue of access to finance for small and medium-sized enterprises. He stated that it would strengthen the capital formation process in the Nigerian financial market.
The DLM Sovereign Bond-Backed Composite Note is registered and regulated by the Securities and Exchange Commission (SEC) and provides access to Nigeria’s consumer credit and SME growth markets.
