The Development Bank of Nigeria (DBN), yesterday, announced plans to raise N23 billion from domestic investors to provide funding to Micro, Small & Medium Enterprises (MSMEs), in furtherance of its core corporate objective.
This is coming after the initial N20 billion debut issuance under DBN’s N100 billion medium term note programme was oversubscribed.
This is aimed at expanding the capital base of the development finance institution promoted by the Federal Government.
Speaking at the signing ceremony in Lagos, the Managing Director DBN, Tony Okpanachi said the choice of the partners and issuing houses was premised on their track records.
He said, “obviously we looked at the track records, and we also hope to work with more partners. We are quite comfortable that they know the market and they have worked well with us and raised bonds for several organizations. As we raise more funds we would work with more partners so the door is not closed to others.”
Offer documents indicated that the net proceeds of the N23bn issue would be used to expand DBN’s capacity to provide funding to Micro, Small & Medium Enterprises (MSMEs), in furtherance of its core corporate objective.
He explained that the monies borrowed from the development partners, would be paid back, just as the funds given to MSMEs would also be paid back because they are all loans.
The Executive Director and Chief Financial Officer DBN, Mrs Ijeoma Ozulumba, added that the interest rates are affordable and that as the economy improves and interest rates moderate, it will also reflect on the instrument.
