The Development Bank of Nigeria (DBN) has announced plans to raise N23 billion from domestic investors to provide funding to Micro, Small & Medium Enterprises (MSMEs).
The DBN Managing Director Tony Okpanachi, speaking at the signing ceremony in Lagos, said the choice of the partners and issuing houses was based on their track records.
The initiative is aimed at expanding the capital base of the development finance institution promoted by the Federal Government and it comes after the initial N20 billion debut issuance under DBN’s N100 billion medium-term note programme was oversubscribed.
He said, “obviously we looked at the track records, and we also hope to work with more partners. We are quite comfortable that they know the market and they have worked well with us and raised bonds for several organizations. As we raise more funds we would work with more partners so the door is not closed to others.”
He explained that the monies borrowed from the development partners would be paid back, just as the funds given to MSMEs would also be paid back because they are all loans.
The DBN Executive Director and Chief Financial Officer, Mrs Ijeoma Ozulumba, added that the interest rates are affordable and that as the economy improves and interest rates moderate.