By Kingsley Ani
DLM Capital Group has fulfilled its second principal and interest payment obligation on its N9 billion Sovereign Bond-Backed Composite Notes (SBCN), paying investors a combined N1.15 billion across Tranches A and B.
The notes were issued under the Group’s N30 billion Medium-Term Notes Programme and listed on FMDQ Exchange.
DECISION HIGHLIGHT
The second payment provides a further market-level demonstration of the SBCN structure’s ability to translate its stated credit and return characteristics into actual investor payments.
DECISION MEMO
The significance of DLM Capital Group’s latest payment lies less in the size of the coupon than in the evidence of execution it provides for a relatively new structured investment instrument.
Investors in Tranche A received N948.49 million, while Tranche B investors received N197.08 million. The payment follows the first principal and interest settlement six months earlier, creating a second observable performance point for the instrument.
Developed by Sonnie Babatunde Ayere, Group Chief Executive Officer of DLM Capital Group, the SBCNs entered the market in July 2025 with AAA ratings from Global Credit Rating and DataPro Limited. The subsequent payments allow investors to assess the instrument against its original structure rather than relying solely on its initial rating.
DLM Capital Group has also maintained quarterly performance reporting, adding an information-disclosure layer to the payment record.
Ayere said: “The successful second coupon payment is therefore not only another milestone for the DLM SBCNs, but also a continuation of the Group’s commitment to developing and delivering innovative financial solutions backed by execution, transparency and value for its investors and stakeholders.”
He added that the initiative forms part of the Group’s efforts to contribute to the development of Nigeria’s financial ecosystem.
The combination of timely payments, credit ratings and continuing disclosure is particularly relevant in a fixed-income market where investor confidence depends not only on promised returns, but on demonstrated payment performance and information quality.
DATA BOX
- Total SBCN programme: N30 billion.
- SBCNs issued: N9 billion.
- Second payment: N1.15 billion.
- Tranche A payment: N948.49 million.
- Tranche B payment: N197.08 million.
- First and second payments: six months apart.
- Rating: AAA by Global Credit Rating and DataPro Limited.
- Listing: FMDQ Exchange.
- Issue date: July 2025.
WHO WINS / WHO LOSES
Investors benefit from another completed payment cycle and continuing performance disclosure.
DLM Capital Group benefits from an additional observable record of execution. The wider fixed-income market could benefit if such structures deepen confidence in innovative capital-market instruments.
POLICY SIGNALS
The transaction reinforces the importance of structured financing, credit enhancement and transparent reporting in broadening Nigeria’s investment-market options.
INVESTOR SIGNAL
The second payment strengthens the observable performance history of the SBCNs. Investors can now assess the instrument using actual payment experience alongside its rating, structure and stated return profile.
RISK RADAR
Past payment performance does not eliminate future credit or market risk. Investors still need to assess the underlying sovereign-bond backing, structure, maturity, liquidity, issuer obligations and future payment capacity.
Kingsley Ani is a journalist who has over the years been covering capital markets, corporate results, economic and public-interest developments with a focus on clear, factual reporting.
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