Breaking New Ground: DLM Unveils World’s First Sovereign Bond-Backed Composite Notes with Up to 47.07% Yield

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Olori Uwem

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Mar 18, 2024
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Breaking New Ground: DLM Unveils World’s First Sovereign Bond-Backed Composite Notes with Up to 47.07% Yield

In a historic move to transform Nigeria’s investment landscape, DLM Capital Group has launched the Series 1 Sovereign Bond-Backed Composite Notes (SBCNs) — a world-first in public capital markets. This is part of the firm’s ₦30 billion Medium-Term Note Programme and is being issued through DLM Funding SPV Plc.

Here’s what investors need to know:

✅ What’s Being Offered?
The Series 1 SBCNs are AAA-rated structured investment notes, backed by Federal Government of Nigeria (FGN) bond cashflows. This gives them sovereign credit risk protection—meaning the notes offer high security with low default risk.

✅ What Makes This Unique?
This is the world’s first public issuance of Sovereign Bond-Backed Composite Notes — blending innovation with security. Investors get a hybrid structure that protects their capital while targeting high returns.

✅ How Much Can You Earn?
A jaw-dropping yield of up to 47.07% per annum (hold-to-maturity) — far above traditional government bonds and other fixed income products.

✅ Tenor & Rating:
• Maturity: 10 years (2035)
• Average Life: 5.5 years
• Ratings: AAA by both Global Credit Rating (GCR) and DataPro

✅ Subscription Window:
️ Open from July 1 – July 14, 2025

Why It Matters

Speaking at the unveiling, Dr. Babatunde Sonnie Ayere, Group CEO of DLM Capital Group, emphasized that the new bond structure is designed to meet the rising demand for safe, high-yield investments in Nigeria.

“This bond was created to address the growing demand for innovative, secure, and high-yield investment opportunities in the Nigerian capital markets,” he said.

️ Built for Safety & Growth

The Notes are structured under a bankruptcy-remote Special Purpose Vehicle (SPV). This shields investors from any financial risks linked to the sponsor (DLM), ensuring repayment is isolated and secure.

Where Will the Funds Go?
Proceeds will be invested in FGN bonds and used to finance consumer and SME loans, directly supporting inclusive economic growth in Nigeria.

⚠️ Final Note:

This offering is ideal for institutional and retail investors seeking:
• High returns
• Maximum safety
• Exposure to sovereign-backed assets
• A role in fostering economic growth

If you’re looking for a smart and secure investment in 2025, this may just be it.