Borrow Without Selling: Coronation Unveils Elite Loan Facility Backed by Investors’ Stock Portfolios
Institutions Behind the Product
The new lending solution is offered through a partnership between:
• Coronation Securities Limited
• Coronation Merchant Bank
Both belong to the broader Coronation Group.
What Was Launched?
A structured Securities-Backed Lending (SBL) facility.
This allows investors to borrow money using their stock investments as collateral — without selling them.
Who the Product Is For
The facility targets financially sophisticated clients:
High-Net-Worth Individuals (HNIs)
Ultra-High-Net-Worth Individuals (UHNIs)
Corporates
Institutional investors
Not designed for typical small retail investors (at least initially).
How Securities-Backed Lending Works
Step-by-Step
Client holds a portfolio of qualifying stocks with Coronation
Those securities are pledged as collateral
The bank provides a loan based on portfolio value
Client keeps ownership of the shares
Portfolio continues to earn dividends and market gains/losses
Key Advantage: Liquidity Without Selling Investments
Normally, investors needing cash must sell assets.
This solution allows them to:
Access funds quickly
Maintain long-term investment strategy
Avoid triggering capital gains or missing dividends
Stay exposed to potential market upside
️ What Makes It “Institutional-Grade”
The structure combines different functions:
Merchant Bank Role
• Credit assessment
• Loan structuring
• Risk management
• Oversight
Brokerage Role
• Custody of securities
• Portfolio monitoring
• Lien (legal claim) management
• Execution support
Similar to Global Private Banking Solutions
This type of lending is common among wealthy investors in developed markets.
It is often used for:
Real estate purchases
Business expansion
Short-term liquidity needs
Portfolio leverage strategies
Why the Product Was Introduced
According to the company:
Nigeria’s capital market participation is growing
Investors are holding larger portfolios
Need for sophisticated wealth-management tools is increasing
Key Philosophy Behind the Product
Investors shouldn’t have to dismantle carefully built portfolios just to raise cash.
In simple terms:
Keep your investments working while solving cash needs.
Important Risks to Understand
Though attractive, SBL comes with risks:
If stock values fall sharply, additional collateral may be required
Failure to meet terms could lead to forced sale of pledged shares
Interest costs apply
Market volatility affects borrowing capacity
Why This Matters for Nigeria’s Capital Market
The launch signals a shift toward:
More sophisticated financial products
Private-banking-style services
Deeper capital market development
Better wealth-management infrastructure
Key Takeaway
Securities-Backed Lending allows wealthy investors to turn their portfolios into a source of cash — without exiting the market.
Institutions Behind the Product
The new lending solution is offered through a partnership between:
• Coronation Securities Limited
• Coronation Merchant Bank
Both belong to the broader Coronation Group.
What Was Launched?
A structured Securities-Backed Lending (SBL) facility.
This allows investors to borrow money using their stock investments as collateral — without selling them.
Who the Product Is For
The facility targets financially sophisticated clients:
High-Net-Worth Individuals (HNIs)
Ultra-High-Net-Worth Individuals (UHNIs)
Corporates
Institutional investors
Not designed for typical small retail investors (at least initially).
How Securities-Backed Lending Works
Step-by-Step
Client holds a portfolio of qualifying stocks with Coronation Those securities are pledged as collateral The bank provides a loan based on portfolio value Client keeps ownership of the shares Portfolio continues to earn dividends and market gains/lossesKey Advantage: Liquidity Without Selling Investments
Normally, investors needing cash must sell assets.
This solution allows them to:
Access funds quickly Maintain long-term investment strategy Avoid triggering capital gains or missing dividends Stay exposed to potential market upside️ What Makes It “Institutional-Grade”
The structure combines different functions:
Merchant Bank Role
• Credit assessment
• Loan structuring
• Risk management
• Oversight
Brokerage Role
• Custody of securities
• Portfolio monitoring
• Lien (legal claim) management
• Execution support
Similar to Global Private Banking Solutions
This type of lending is common among wealthy investors in developed markets.
It is often used for:
Real estate purchases
Business expansion
Short-term liquidity needs
Portfolio leverage strategies
Why the Product Was Introduced
According to the company:
Nigeria’s capital market participation is growing
Investors are holding larger portfolios
Need for sophisticated wealth-management tools is increasingKey Philosophy Behind the Product
Investors shouldn’t have to dismantle carefully built portfolios just to raise cash.
In simple terms:
Keep your investments working while solving cash needs.
Important Risks to UnderstandThough attractive, SBL comes with risks:
If stock values fall sharply, additional collateral may be required
Failure to meet terms could lead to forced sale of pledged sharesInterest costs apply
Market volatility affects borrowing capacity
Why This Matters for Nigeria’s Capital Market
The launch signals a shift toward:
More sophisticated financial productsPrivate-banking-style services
Deeper capital market development
Better wealth-management infrastructure
Key Takeaway
Securities-Backed Lending allows wealthy investors to turn their portfolios into a source of cash — without exiting the market.
