Chapel Hill Advisory Partners Limited has launched what BusinessDay called Nigeria’s first gender bond, a ₦7.5 billion issue intended to direct longer-term financing to women-owned and women-led firms.
In a report dated Nov. 11, BusinessDay said the five-year, fixed-rate Series 2 bond was issued by Chapel Hill Financing SPV Plc under a ₦250 billion debt issuance program. The outlet reported that net proceeds will go through Chapel Hill Denham Nigeria SME Limited (SME.NG), the group’s gender-focused investment platform for smaller businesses.
The report said funding is intended for eligible women-owned and women-led small and medium-sized enterprises (SMEs) and micro, small and medium-sized enterprises (MSMEs). To qualify, borrowers must meet SME.NG’s requirements and the 2X Criteria set by 2X Global, according to BusinessDay. The bond framework is aligned with the International Capital Market Association’s Social Bond Principles, the outlet said.
Chapel Hill CEO Bolaji Balogun said the bond is meant to address women-owned firms’ difficulty securing longer-term capital. He also credited those businesses with supporting employment and growth, BusinessDay reported.
FSD Africa (Financial Sector Deepening Africa) acted as sustainable finance adviser, according to the report. Evans Osano, its chief financial markets officer, said FSD Africa provided technical help on the independently reviewed structure and hoped future issuers would consider a similar approach.
BusinessDay reported that Agusto & Co.’s independent second-party opinion covered both the bond and the portfolio of businesses SME.NG may finance. The opinion found them aligned with the Social Bond Principles and consistent with Chapel Hill’s wider sustainability strategy.
