Dunn Loren Merrifield (“DL Merrifield”) is a full service investment house which commenced business operations as at September 2009. It is an independent institution that combines the attributes of origination, distribution and trading of securities.
April 18, 2013: Headquartered in Lagos, Nigeria, Dunn Loren Merrifield delivers bespoke solutions to sovereign/ sub-sovereign entities and to private & non-private corporations. The company works with domestic pension fund managers, asset managers, bank treasurers, corporate bankers, trustees, high net worth individuals and retail investors on the distribution side.
Dunn Loren Merrifield group currently consists of (i) Dunn Loren MerrifieldAdvisory Partners
(ii) Dunn Loren Merrifield Securities (iii) Dunn Loren Merrifield Asset Management & Research Co. and (iv) Dunn Loren Merrifield Nominees. The purpose of the firm is to give innovative financing solutions to clients, and identifyingasset classes that will help shape new investment products to meet the needs of the market.
Since 2009, the team at Dunn Loren Merrifield has executed some of the most complex transactions in the history of the Nigerian capital markets as the company thrives on a culture of innovation, strong client focus and world class execution of services. They have equally introduced some of the most innovative structuring solutions to meet clients’ financing challenges with various investment banking products on offer.
Dunn Loren Merrifield Advisory Partners in April 2011 issued the first floating rate corporate bond in the Nigerian capital market for Dana Group of companies, anN8.01 Billion Series 1 which achieved the longest maturity of seven years, due in April 2018. The firm structured the first corporate debt issue guaranteed by a foreign development finance institution (GuarantCo) and listed on the Nigerian Stock Exchange in September 2011 with the Tower Funding PlcN4.63 Billion Series 1 floating rate bonds due September 2018.
The firm structured the first “AAA” rated corporate bond listed on the Nigerian Stock Exchange with the N1 Billion Series 1 Tranche B floating rate bonds also issued by Tower Funding Plc.
It also successfully structured and issued the Series 2 and Series 3 Notes under the N100 Billion Residential Mortgage Backed Securities (RMBS) on behalf of the Federal Mortgage Bank of Nigeria in 2012, the first RMBS transaction in Nigeria listed on the Nigerian Stock Exchange. The significant impact of these transactions increased the maturity structure and yield curves in the corporate bond market, by providing a pricing bench mark for other real sector corporates to access the bond market. The transactions further deepened the capital market by improving the term structure of asset classes available in the secondary markets.
DL Merrifield independently advised Bayelsa State Government on the restructuring of its N50,000,000,000 13.75% fixed rate bonds, being the first sub-sovereign debt restructuring transaction in Nigeria. It involved the conversion of a bullet bond in an aggregate principal debt (outstanding) of N50 Billion to amortising bond, a landmark service innovation in the Nigerian capital markets. The successful execution of that transaction attained the State’s economic rationale for seeking to restructure the repayment of the bond, and assisted the State to adopt fiscal responsibility in the utilisation of its funds. The amortising structure was the optimal repayment structure for the State that ultimately reduced its cost of capital in the medium-to-long-term. This subsequently changed the market practice by providing the transaction precedence for issuing amortising bonds in Nigeria.
Dunn Loren Merrifield is appointed the lead issuing house and recently acted as adviser in the establishment of the Nigeria Mortgage Refinance Company (“NMRC”) on behalf of the Ministry of Finance, World Bank and Central Bank of Nigeria (CBN) under the Nigeria Housing Finance Programme.
The NMRC is set up as a Public Private Partnership (PPP) arrangement with shareholders spanning government agencies, local and international financial institutions, mortgage banks and private equity investorsto meet the current housing finance sector needs in Nigeria by bridging the funding cost of residential mortgages. It aims to promote the availability and affordability of housing to Nigerians by increasing liquidity in the mortgage market. The successful implementation of this mortgage program will, conservatively by estimate, set a growth process in motion that will begin to deliver homes and generate jobs for the Nigerian people.
As a fixed income and equities market marker of the Nigerian Stock Exchange, Dunn Loren Merrifield Securities continues to provide proactive solutions that help shape execution strategies. The company’s institutional equity division is one of the market leaders in the distribution and trading of equity products and on the fixed income side, deals with incredibly diverse products including sovereign & sub-sovereign bonds, treasury bills, commercial paper, corporate bonds, and residential mortgage backed securities (RMBS).
Dunn Loren Merrifield Asset Management & Research Co. provides asset management services in addition to cutting edge investment research to its clients and investors worldwide. The company’s investment philosophy is guided by its strongbelieve in a long-term approach for appropriate asset selection. It adheres to both the “buy” and “sell”disciplines of the business.
Dunn Loren Merrifield works with international emerging market fund managers and international banks with an appetite for sub-Saharan Africa investments and holds a strong recognition for its people – the team of professionals who continue to nurture and advise clients to take diligent investment decisions.