VFD Group, a financial service focused investment group based in Lagos has recorded a 175% oversubscription on its Debt Note product offer.
According to the group, it issued fixed rate unsubordinated secured Debt Notes of N1m only per note to sophisticated individual and corporate investors. The offer, designed to raise N300m in one week, closed on February 16 at N525m representing a 175% oversubscription.
Adenrele Omolara, the Head of sales at VFD Group, said the group 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.
According to her, “The 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 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.
Nonso Okpala, Group Managing Director (GMD) stated “VFD Group’s Debt Note affords retail investors an opportunity to earn a minimum interest of 19% with prospect of an enhanced yield as a result of the tradability of this financial instrument.”
Based on the product’s term sheet, Anchoria Asset Management (AAM), will provide an Over the Counter (OTC) platform for the purpose of trading these notes. There are also plans to list the Debt Notes on FMDQ as this is an innovative pilot scheme aimed at establishing an active OTC market for Debt Notes.
Okpala further said, “You can always count on VFD Group to provide leadership in product and service innovation in the financial sector.