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VFD debt note oversubscribed by 175%

VFD debt note oversubscribed by 175%

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VFD Group raised N525m in one week, exceeding the target of its debt note product.

The investment company, in a statement, said it recently issued fixed rate unsubordinated secured debt notes of N1m per note to sophisticated individual and corporate investors.

The offer, which opened on February 12, 2018, according to it, was proposed to raise N300m. It, however, closed on the February 16, 2018 with a total receipt of N525m, representing a 175 per cent oversubscription.

The Head of Sales at VFD Group, Adenrele Omolara, was quoted in the statement as saying that, “We thoroughly researched the investment market and discovered the need for a retail-focused, high yield and tradeable financial instrument promoted and issued by a company with an impeccable reputation.

“Excitement exhibited by investors towards the offer was an indication of the group’s understanding of the market’s needs.”

The debt notes are set at an interest rate of 19 per cent per annum with a one-year tenor. They are backed by the issuer’s equity portfolio held by United Capital Trustees, thus giving the debt notes a 1:2 cover ratio.

VFD’s Group Managing Director, Mr. Nonso Okpala, said, “VFD Group’s debt note affords retail investors an opportunity to earn a minimum interest of 19 per cent with prospect of an enhanced yield as a result of the tradability of this financial instrument.”

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