DLM Capital Group, a leading Nigerian development investment bank, has launched a N10 billion Series 2 Commercial Paper (CP) under its N20 billion CP Programme to raise short-term funding for working capital and general corporate purposes across its subsidiaries.
The offer, which opened on October 10, 2025, closes on October 20, 2025, with settlement on October 21, 2025.
Repayment obligations will be funded from the Group’s operating cash flow, reflecting confidence in its liquidity and revenue capacity.
Other offer details
The issuance comprises two tranches:
According to the press release, the notes may be quoted on the FMDQ Exchange platform or any other recognized exchange, offering investors secondary market liquidity.
The discount rate represents the percentage deducted from the face value of the note at purchase, while the effective yield reflects the actual annualized return an investor earns at maturity, taking into account the time value of money.
Since CPs are issued at a discount and redeemed at par, the effective yield is higher, reflecting the true percentage gain over the investment period.
Inflation context
With Nigeria’s headline inflation rate at 18.02% as of September 2025, both tranches of DLM Capital Group’s Commercial Paper offer compelling nominal returns relative to prevailing inflation and money market rates.
However, while Treasury Bills are virtually risk-free, DLM’s Commercial Paper carries corporate credit exposure, meaning investors should be compensated with a higher yield for taking moderate credit risk.
The DLM Capital Group CP Programme enjoys strong short-term credit ratings from leading agencies:
These ratings suggest adequate capacity for timely repayment of financial obligations and a low to moderate credit risk profile.
DLM Capital Group is a diversified Development Investment Bank providing integrated financial services through subsidiaries in investment banking, securities trading, asset management, and lending.
The Group’s business model focuses on mobilizing capital for growth sectors such as agriculture, education, and renewable energy, while also deepening Nigeria’s capital markets through innovative financial instruments.
Recently, DLM completed a N9 billion Series 1 Sovereign Bond Backed Composite Notes (SBCN) issuance due 2035, a long-term, sovereign-linked instrument.
Recently, DLM completed a N9 billion Series 1 Sovereign Bond Backed Composite Notes (SBCN) issuance due 2035, a long-term, sovereign-linked instrument.