Coronation targets high-net-worth clients in new institutional-grade securities

Coronation Securities Limited, a subsidiary of Coronation Group in partnership with Coronation Merchant Bank, has introduced a structured Securities-Backed Lending (SBL) solution designed for high-net-worth and ultra-high-net-worth clients as well as corporates seeking disciplined access to liquidity without disrupting long-term investment positions.

“We built this product in response to a clear need we observed within Nigeria’s rapidly evolving capital markets. As participation deepens among both retail and institutional investors, it has become increasingly important to provide solutions that allow clients to remain fully invested while still accessing liquidity when needed.” Azeezat Awonuga, Team Lead, Products and Training, Coronation Securities, said in a statement.

According to her, the product is targeted at clients with established investment portfolios, including private wealth clients, corporates, and institutional shareholders. She disclosed that the facilities are structured with defined loan-to-value parameters and formalised repayment structures, with tenors of up to 24 months depending on facility type.

Awonuga disclosed that unlike margin lending or retail credit products, Coronation’s SBL solution is positioned as a wealth management capability rather than a transactional loan.

“Product engagement is led by relationship managers and senior advisors, reinforcing a relationship-driven approach to structured liquidity”, she said.

Awonuga said that Coronation intends to deepen its integrated credit and custody model with the launch of the solution, mirroring best practice seen in leading global institutions, and establishes a formalised institutional benchmark for portfolio-based lending in the Nigerian market.

According to her, the company approach has always been driven by innovation and a commitment to ensuring its clients can take full advantage of the opportunities available in the market. She added that the facility allows eligible clients to borrow against qualifying equity portfolios held with Coronation Securities while retaining ownership and market exposure.

Awonuga disclosed that the newly launched product combines Coronation Merchant Bank’s credit structuring and risk oversight with Coronation Securities Limited’s brokerage, custody, and lien management, creating a private-banking-style liquidity solution.

“Loans are secured with a 200% collateral coverage ratio through lien placements via the Central Securities Clearing System, supported by credit life insurance, structured repayment options of up to 24 months, and a disciplined risk framework that ensures transparency, due diligence, and regulatory compliance,” Awonuga said.