Nova Merchant Bank’s debut N10bn bond oversubscribed by 300%

Nova Merchant Bank has recently made headlines with the successful issuance of a 10 billion naira seven-year subordinated unsecured bond that was oversubscribed by an incredible 300 percent. This impressive feat has sparked conversations about the bank's strategy and future plans. In a recent interview on CNBC Africa, Ifeanyi Chkwuonye, the Chief Financial Officer of Nova Merchant Bank, shed light on the details of the bond issuance and the bank's overall performance in the market. Chkwuonye revealed that the decision to enter the market amidst the pandemic was a strategic move aligned with the bank's goal to raise long-term funding. Despite the challenges posed by the COVID-19 crisis, Nova Merchant Bank identified viable opportunities and seized them to further strengthen its position in the market. The overwhelming response to the bond issuance, with a subscription rate of over 300 percent, exceeded expectations and highlighted the market's faith in the bank's offerings. Chkwuonye expressed gratitude for the positive reception and confirmed that Nova Merchant Bank plans to continue tapping into such opportunities in the future. The CFO also shared insights into the purpose of the funds raised through the bond issuance, emphasizing that the proceeds would be used to create long-term corporate loans and enhance the bank's balance sheet efficiency. Nova Merchant Bank, despite its relatively short three-year existence, has displayed remarkable performance, posting impressive growth earnings, PBT, and total assets figures. The bank's profitability indexes have shown significant increments, showcasing its operational efficiency and strategic approach to business. Looking ahead, Chkwuonye outlined Nova Merchant Bank's short and long-term goals, which revolve around building a sustainable and reputable merchant banking institution that will make its investors proud. The successful bond issuance is just one step in Nova Merchant Bank's journey towards achieving its ambitious goals and solidifying its position in the financial market space. With a strong foundation and a clear vision for the future, Nova Merchant Bank is poised for continued success and growth in the evolving financial landscape.