Cowry Asset completes Zamfara’s N3b bond underwriting
Cowry Asset Management Limited said it has completed the payment of N3 billion in fulfillment of its underwriting commitment under the N7 billion Zamfara State Government’s bond scheme.
The N3 billion paid by Cowry Asset represents 42.86 per cent of the total value of the bond issue, the highest by any of the three underwriters to the bond issue.
The N7 billion Zamfara State Government- a seven-year Fixed Rate Development Bond, was the first tranche under the N30 billion Zamfara State bond issuance programme.
The Securities and Exchange Commission (SEC) at the weekend, confirmed that Cowry Asset has “satisfactorily fulfilled its underwriting commitment in accordance with the provisions of the Investment and Securities Act 2007 as well as the rules and regulations of the Securities and Exchange Commission”, referencing the full payment of the N3 billion underwriting commitment.
Cowry Asset, a full-service investment banking firm licensed by SEC as an issuing house, financial adviser, underwriter and venture capital manager, has been a major player in the Nigerian capital market for nearly a decade.
It also has subsidiaries in consulting, securities trading and real estate. The net proceeds of the bond issue would enable the Zamfara State Government to deleverage and reposition its finances towards delivering further dividends of democracy to its citizens.
Commenting on the completion of the underwriting, the company’s Managing Director, Johnson Chukwu, said the N3 billion underwriting underlined the financial capacity of Cowry Asset at a time that several financial institutions are struggling to meet regulatory capital.
He noted that the participation of Cowry Asset as a major underwriter in the Zamfara State bond was another illustration of the commitment of the firm as an indigenous partner in the quest for development by Nigerian Capital market.
Cowry Asset has been involved as financial advisers, issuing house and underwriter in several fund raising exercise in the capital market for both public and private companies and governments through public offers, rights issue, private placements, corporate and government bonds. “The firm provides advisory services and funding to support the growth of Nigerian companies and development of the economy,” Chukwu said.
He added that Cowry Asset has demonstrated competence in marketing capital issues with her extensive distribution network and team of experts who provide solutions to both issuers and the investing public.
Some of the recent capital offers undertaken by Cowry Asset include the N30 billion Fidelity Bank subordinated unsecured fixed rate bond issuance 2022; and the N8 billion first tranche Cross River State Government fixed-rate seven-year bond issue 2022.