Interswitch Raises N23bn Via Bond Sale

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Mitchell Elegbe

Hamid Ayodeji

Interswitch Limited has raised N23 billion through the issuance of a series 1, fixed rate, senior, unsecured callable bonds.

The integrated digital and e-payment company raised the fund via a special purpose vehicle, Interswitch Africa One Plc.

The investor participation was restricted to qualified institutional investors as defined by the Securities and Exchange Commission (SEC), with a proposed allocation of 64 per cent to pension fund managers, seven per cent to asset managers and 20 per cent to commercial banks pending SEC’s approval.

The company explained that the strong level of oversubscription demonstrated investor confidence in the Interswitch brand, business model and long-term strategy, supported by strong domestic ratings from both Agusto & Co. Limited and Moody’s Investor Service.

The founder, Interswitch, Mitchell Elegbe, while speaking at an event yesterday, expressed delight while disclosing the success of the first bonds issuance under its capital raising programme, especially with the level of interest shown by investors.

Elegbe said, “Diversifying our funding sources through the inclusion of these bonds will enable us achieve our strategic objectives and vision.

“FBNQuest Merchant Bank and Stanbic IBTC Capital acted as Lead Financial Advisors as well as Issuing Houses and ABSA Capital Markets

Nigeria, FCMB Capital Markets, Quantum Zenith Capital & Investments and Rand Merchant Bank Nigeria, as Joint Issuing Houses.”

Meanwhile, the issuer was assigned “Aa3” national scale programme rating by Moody’s and “Aa” national scale rating by Agusto, based on positive secular industry shifts, a strong market position as well as  a good liquidity profile. In addition to this, the Sponsor was also assigned an “Aa” rating by Agusto.