CBN approves licence for development bank with N398.45b seed fund

• Nigeria gets better bargain in $500m Eurobond

The Central Bank of Nigeria (CBN) has approved a licence for the Development Bank of Nigeria with $1.3 billion as seed capital , Minister of Finance, Kemi Adeosun said yesterday.

The ministry, which is the chief promoter of the financial powerhouse, revealed yesterday in a statement that the CBN approved the grant of a Wholesale Development Finance Institution Licence with national authorisation to the DBN Plc.

The operation of the DBN is clearly distinct from other development banks as it is focused on supporting small businesses defined by size and not by sectors.

Meanwhile, Nigeria got a better bargain of 7.5 per cent in the second phase of the Global Medium Term Note Programme popularly called Eurobond, which sought to raise additional $500 million, against 7.875 per cent on the $1 earlier floated.

By the terms of the deal, both bonds would be consolidated into a single series, with the terms and conditions being identical to those of the first one, paying a coupon of 7.875 per cent per annum, maturing on 16 February 2032 and repayable by way of bullet repayment of the principal together with the original notes.