“If not now, when? If not this product, then what?” — Dr. Sonnie Babatunde Ayere, CEO, DLM Capital Group
Sovereign Bond Backed Composite Notes (SBCNs) are changing the investment landscape in Nigeria. More than just a financial instrument, they are a bridge between capital markets and real economic transformation. By strategically channeling funds into underserved sectors, SBCNs unlock opportunities for small and medium enterprises (SMEs), allowing these businesses to scale, create jobs, and drive consumer demand that fuels broader economic growth.
For investors, SBCNs deliver something rare in today’s financial world: a combination of security and yield. Unlike conventional fixed-income instruments, these notes are backed by the Nigerian government’s cashflows, ensuring safety even in turbulent markets. At the same time, they offer diversified exposure across industries, boosting portfolio performance and credit quality while hedging against inflation.
The value for the economy is equally compelling. SMEs, often starved of capital, can now expand operations, hire and train talent, and innovate. Increased consumer income translates into higher spending, supporting businesses in various sectors of the economy. Communities that previously had limited access to finance now have avenues to grow, and the country benefits from a more inclusive, resilient economic ecosystem.
Dr. Sonnie Babatunde Ayere, CEO of DLM Capital Group, emphasizes that as a Development Investment Banking Institution, “SBCNs were created to show that investment isn’t just about returns — it’s about impact. We wanted a product that fuels growth while offering investors a secure, high-performing instrument.”
Beyond the numbers, SBCNs embody a philosophy: private capital can and should contribute to national prosperity. By aligning investor interests with socio-economic objectives, the product creates a virtuous cycle — more capital into underserved markets leads to more growth, which drives consumption and investment, which in turn creates more opportunities.
The timing couldn’t be better. Nigeria’s SME sector represents a massive, largely untapped engine of growth. With SBCNs, investors have a direct pathway to participate in this growth, creating returns for themselves while helping the nation scale industries that have long been overlooked without compromising investors’ corporate bond portfolio credit quality.
In short, SBCNs are not just another investment option; they are a blueprint for sustainable economic development. They demonstrate that strategic, well-structured financial products can generate measurable impact while rewarding investors. And perhaps most importantly, they pose a question to every potential investor: if a product like this exists, why not participate?
