The VFD Group, an alternate financial service holding company has recorded a 175 per cent subscription on its debt notes offer.
The group, in a statement, revealed that it raised N525 million in one week, exceeding the target of the offer.
The offer, designed to raise N300million in one week, closed on February 16.
According to company, they also issued a fixed rate unsubordinated secured debt notes of N1 million only per note to sophisticated individual and corporate investors.
The Head of Sales, VFD Group, Adenrele Omolara said: â€œWe 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.
â€œThe excitement exhibited by investors towards the offer was an indication of the Groupâ€™s understanding of the marketâ€™s needs.â€
The debt notes were set at an interest rate of 19 per cent per annum with a one-year tenure. They are backed by the issuerâ€™s equity portfolio held by United Capital Trustees, thus giving the instrument a 1:2 cover ratio.â€
The companyâ€™s Group Managing Director,Mr. Nonso Okpala, also noted that: â€œVFD Groupâ€™s Debt Note affords retail investors an opportunity to earn a minimum interest of 19 per cent with prospect of an enhanced yield because of the tradability of this financial instrument.
â€œYou can always count on VFD Group to provide leadership in product and service innovation in the financial sector.â€