Development Investment Bank, DLM Capital Group, has made the first principal and interest (coupon) payment to investors under its Sovereign Bond-Backed Composite Notes (SBCNs) issuance, reinforcing investor confidence in the innovative fixed income instrument.

The Group said the successful payment, alongside the consistent publication of quarterly performance reports, reflects its commitment to transparency, capital preservation and effective investor engagement.

The SBCNs were issued by DLM Funding SPV Plc under a ₦30.00 billion Medium-Term Notes Programme developed by the Group Chief Executive Officer, Dr. Sonnie Babatunde Ayere. The issuance comprises the 40.62 per cent Hold-to-Maturity ₦7.30 billion Tranche A Notes and the 19.07 per cent ₦1.70 billion Tranche B Plain Vanilla Series 1 Notes.

The notes were recently listed on the FMDQ Exchange, with the Tranche A bond emerging as the most valuable AAA-rated corporate bond in the market. The instruments represent a new class of structured debt solution designed to meet issuer funding requirements while delivering competitive returns to investors.

Launched in July 2025, the SBCNs entered the market amid a healthy degree of skepticism associated with new financial instruments. However, six months post-issuance, DLM Funding SPV Plc successfully met its first principal and coupon obligations, validating the strength of the structure.

The notes are rated AAA by Global Credit Rating and AAA by DataPro Limited, reflecting strong credit fundamentals and a low-risk profile. The instrument is structured to prioritise capital preservation, liquidity and competitive market returns for institutional investors.

DLM Capital Group said investor participation has remained strong, supported by timely coupon payments, high credit ratings and sustained disclosure practices. The Group added that growing investor interest ahead of Series 2 indicates increasing market acceptance of the SBCNs.

As a Development Investment Bank, DLM Capital Group reaffirmed its commitment to delivering structured financial solutions aligned with investor needs while maintaining high standards of governance and execution.

“Investor response has been notably strong and institutional investors who are beginning to recognize the value of a well-structured de-risked, high-return and, high-quality fixed income investment backed by a credible issuer with a proven track record.

“The combination of timely coupon payments, high credit ratings, and ongoing transparency has positioned SBCNs as a preferred option for investors seeking stability and performance in today’s evolving financial landscape.

“As investor interest continues to build towards Series 2, DLM SBCNs are not only demonstrating resilience but also setting a benchmark for innovation in Nigeria’s debt capital markets. In its role as a Development Investment Bank (“DIB”), DLM Capital Group remains committed to delivering structured solutions that align with investor needs whilst maintaining the highest standards of governance and execution.”