Cowry Asset Management Limited says it has fully paid N3bn in fulfillment of its underwriting commitment under the N7bn Zamfara State Government Bond.
According to the company, the N3bn it paid 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 N7bn Zamfara State Government Seven-Year Fixed Rate Development Bond was the first tranche under the state’s N30bn bond issuance programme.
The net proceeds of the bond issue is meant to enable the Zamfara state government to deleverage and reposition its finances towards delivering further dividends of democracy to its citizens.
The company said in a statement that the Securities and Exchange Commission on Friday confirmed that it had satisfactorily fulfilled its underwriting commitment in accordance with the provisions of the Investment and Securities Act 2007 as well as the SEC rules and regulations with reference to the full payment of the N3bn underwriting commitment.
The Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, was quoted as saying that the N3bn underwriting underlined the financial capacity of Cowry Asset at a time that several financial institutions were struggling to meet regulatory capital requirement.
Chukwu explained that the participation of Cowry Asset as a major underwriter in the Zamfara bond was another illustration of the commitment of the firm as an indigenous partner in the quest for development by Nigerian Capital market.
He said, “Cowry Asset has been involved as financial advisers, issuing house and underwriter in several fund raising exercises in the capital market for both public and private companies and governments through public offers, rights issue, private placements, corporate and government bonds.
“The company provides advisory services and funding to support the growth of Nigerian companies and development of the economy.”
According to him, Cowry Asset has demonstrated competence in marketing capital issues with its extensive distribution network and team of experts who provide solutions to both issuers and the investing public.
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.
Some of the recent capital offers undertaken by Cowry Asset include the N30bn Fidelity Bank subordinated unsecured fixed rate bond issuance 2022 and the N8bn first tranche Cross River State Government fixed-rate seven-year bond issue 2022 among several others.
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Source : Punch