Crownrise Finance Plc, a non-banking financial institution, is the first finance house to float a N1 billion bond in the Nigerian debt market and will be available to investors in April.
Speaking at a stakeholders’ luncheon to introduce the investment note, Tokunbo Martins, director, other financial institutions department (OFID), Central Bank of Nigeria (CBN), said such institutions are established to operate within the middle-tier of the financial system with a focus on the small and medium enterprises (SMEs) segment.
“The subsector is expected to play complementary roles to the deposit money banks and other financial institutions by bridging financial gaps and meeting the financial needs of its target customers. But most of the financial companies have not demonstrated the capacity to deliver on this mandate due to paucity of funds, among others,” she said.
“But most of the financial companies have not demonstrated the capacity to deliver on this mandate due to paucity of funds, among others. Appropriate products that would attract investors to the market were identified and categorized as permissible activities for operators.”
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Martins said the bond issuance will allow other finance houses to follow suit and access cheap funds by making use of available resources in the debt market.
“As a firm believer in the mission and importance of the subsector, we have decided to rise to the occasion, by mobilising the required resources that will enable us support economic players committed to tapping the opportunities in the Nigerian economy for business growth, employment generation and prosperity for individuals and families.
“These informed our decision to approach the investment public, particularly you, our stakeholders, and raise N1 billion through our bond offer, which would be floated next month.”