What You Need To Know About DLM Capital’s Commercial Papers Offer

DLM Capital Group Limited (DLM) has closed application list for its latest N5 billion commercial paper (CP) issuance. 

DLM Capital sought up to N5 billion in the Series 3 & Series 4 Commercial Paper Notes under its N20 billion CP Issuance Programme. The group is rated ‘BBB-’ by GCR Ratings and ‘A-‘ by DataPro. 

DLM Capital offered, under the Series 3, 180-day CPs at a discount rate of 11.3295 per cent and implied yield of 12.00 per cent. The indicative maturity date was expected to be Wednesday, August 10, 2022 

It also simultaneously offered, under the Series 4, 270- day CPs with discount rate of 11.8595 per cent and implied yield of 13.00 per cent. The indicative maturity date was scheduled for Tuesday, November 08, 2022. 

The net proceeds of the issue would be used to fund working capital requirements of two subsidiaries of the group namely: CitiHomes Finance Company and Links Microfinance Bank. DLM Capital Group had earlier raised N1.24 billion under the Series 1 and N1.01 billion under the Series 2 CPs. These were subsequently listed on the FMDQ Securities Exchange. 

According to the offer prospectus, DLM Capital Group is a development investment bank and a diversified financial services institution. 

The group has been at the forefront of creating alternative funding solutions to businesses, providing bespoke and innovative financing for a variety of economic sectors. 

The group stated that it places a strong emphasis on driving sustainable development of the Nigerian economy by focusing its expertise on key sectors such as agriculture, general business finance, consumer credit, housing, transportation, infrastructure, and education in line with its chosen development mandate to help reduce poverty and improve the living conditions of Africans as a whole. 

According to the offer document, the overall goal of the group is to help mobilise international and domestic capital to support the continent’s economic and social development.