Mr. Sonnie Babatunde Ayere, Group Chief Executive Officer of DLM Capital Group,
As inflation continues to erode the value of traditional fixed-income investments in Nigeria and global capital markets remain volatile, DLM Capital Group is introducing what it calls a game-changing solution: the Sovereign Bond-Backed Composite Note (SBCN). The innovative instrument combines the security of sovereign bonds with the yield potential of real-sector assets—offering investors a new path toward capital preservation and inflation protection.
In an exclusive interview, Mr. Sonnie Babatunde Ayere, Group Chief Executive Officer of DLM Capital Group, revealed the thinking behind the SBCN, its strategic structure, and how the product is designed to set a new benchmark for fixed-income investing in Nigeria.
“We asked ourselves, what kind of instrument could truly address today’s investor concerns—particularly inflation and capital erosion?” Ayere said. “The SBCN is our answer. It’s designed to protect wealth, preserve value, and outperform inflation in a sustainable and secure way.”
The SBCN, rated AAA, is structured on the solid foundation of Federal Government of Nigeria bonds, while simultaneously integrating the dynamic performance of high-yield real-sector investments. This dual-layer structure, according to Ayere, eliminates the age-old dilemma investors face: choosing between safety and performance.
“It’s a fusion of the best features of fixed-income securities and real-sector exposure,” he explained. “We wanted to move beyond traditional instruments that only look good on paper but fall short in today’s inflationary economy.”
Ayere noted that the SBCN was created in response to Nigeria’s shifting macroeconomic landscape. With rising inflation, currency depreciation, and tight monetary conditions, retail and institutional investors alike have struggled to find low-risk investment options that offer real positive returns. For many, government bonds have provided safety but failed to deliver performance.
“The traditional bond market in Nigeria has served its purpose, but it hasn’t kept pace with the real needs of today’s investors,” Ayere told Nairametrics. “We saw an opportunity to innovate—drawing on government-backed stability while also tapping into real-sector yields.”
The creation of the SBCN reflects a broader trend toward hybrid instruments—those that mix conventional financial security with market-driven performance. Ayere said the product is already gaining traction with institutional investors, including pension fund administrators and insurance companies, who are increasingly under pressure to generate meaningful returns without taking on excessive risk.
“The SBCN gives investors peace of mind,” he emphasized. “Whether you’re an individual investor, a pension fund, or a corporate treasury manager, you want a product that protects your capital while delivering steady, inflation-beating income. That’s exactly what this note is designed to do.”
As Nigeria seeks to deepen its capital markets and rebuild investor confidence, financial innovation will play a key role. Ayere believes that instruments like the SBCN could be a catalyst for broader reforms in the fixed-income space and help realign investor expectations in a high-risk, high-cost-of-living environment.
“This is not just a product,” he said. “It’s a paradigm shift. We’re showing that Nigerian firms can engineer world-class solutions that reflect our local realities while meeting global standards.”
Reflecting on DLM Capital Group’s broader vision, Ayere said the SBCN is part of a larger mission to democratize access to reliable, high-quality investment opportunities in Nigeria. The company plans to scale the product and potentially explore cross-border applications in similar emerging markets.
“It’s about confidence and trust,” he concluded. “When people believe that their capital is safe—and working harder for them—you unlock new possibilities for growth, both individually and nationally.”
DLM Capital Group’s Sovereign Bond-Backed Composite Note is now available through the firm’s regulated investment channels. For investors seeking an instrument that bridges the gap between capital preservation and yield in an unpredictable economic environment, the SBCN offers a compelling alternative.
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