Category: Capital Market

Cordros Trustees Limited has been recognised as “Africa Most Innovative Trustee Service Company of the Year. The firm was awarded the honour at the Eighth Africa Quality Achievement Awards (AQAA) in Lagos.

The awards is organised by the African Quality Congress. The yearly award celebrates leadership innovation and creativity in quality management in Africa.

According to the organisers of the awards, this year’s event identified businesses and individuals that applied quality culture and management best practices to analyse, implement and control policies designed to achieve a corporate objective in both profit and non-profit-making organisations in Africa.

Managing Director of Cordros Trustees Limited, Mrs Ifeoma Udom, explained that over the years, the company had provided a bouquet of innovative trust products tailored to meet the needs and wishes of its vast clientele, which includes individuals and corporate institutions.

Cordros Trustees Limited is a subsidiary of Cordros Capital Limited. It commenced operation in 2020 with a passion for creating, preserving and transferring property and assets to their rightful beneficiaries.

• Submits results

• NGX lifts suspension

Ardova (AP) Plc has continued to sustain strong growth in turnover with double-digit growths in 2021 and first quarter of the year.

Following the completion of its group audit Ardova has submitted its full-year results for 2021 and interim report and account for the first quarter of 2022.

The first quarter results for the period ended March 31 2022 showed that turnover rose by 49.9 per cent from N41.99 billion in first quarter 2021 to N62.95 billion in first quarter 2022. Gross profit jumped by 61.8 per cent to N5.42 billion in first quarter 2022 as against N3.35 billion in first quarter 2021.

However, losses from subsidiaries Axles and Cartage and newly acquired Enyo Retail and Supply Limited dampened group profitability. Net profit for the three-month period stood at N193.2 million in 2022 as against N1.16 billion in 2021. Net assets however rose from N126.88 billion in first quarter 2021 to N127.29 billion in first quarter 2022.

The full-year results for the year ended December 31 2021 also showed similar pattern with turnover rising by 10.7 per cent from N181.94 billion in 2020 to N201.44 billion in 2021. Gross profit dropped from N12.13 billion to N9.85 billion.While the company as a standalone posted profit of N1.54 billion in 2021, losses by subsidiaries pushed the group to net loss of N3.85 billion compared with net profit of N1.86 billion in 2020.

The first quarter 2022 results however showed significant improvements as yields from investments made in 2021 contributed to growth in revenue, sales volume and profits.With the submission of all outstanding results; the Nigerian Exchange (NGX) has lifted suspension placed on the shares of Ardova. NGX had penultimate weekend suspended trading on Ardova and eight other companies for failing to submit outstanding results within timeline.

The Exchange stated that Ardova has submitted its results, thus the decision to lift suspension pursuant to Rule 3.3 of the Default Filing Rules, which states: “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange.”

Chief Executive Officer, Ardova Plc, Olumide Adeosun, said 2021 proved to be an eventful year for Ardova as it marked the completion of its stabilisation strategy, with the consequent strengthened balance sheet providing the leverage for the inorganic expansion required to evolve Ardova into an integrated energy company.

“In the course of the year, we concluded a landmark capital raise of N25.3 billion in an over-subscribed bond that was the largest by any downstream company in Nigeria, and an indication of investor confidence in Ardova’s future. We also concluded the acquisition of Enyo Retail and Supply Limited (ERSL) in a deal that makes our retail network the largest in Nigeria.

“The company also made further investments in cleaner energy infrastructure, as it commenced onsite work on its 20,000 metric tonne Liquefied Petroleum Gas (LPG) storage facility in Ijora. Ardova won a licence to operate an Oil Marginal Field following a successful bid in the 2020 round, thereby increasing the company’s potential for foreign currency revenue generation,” Adeosun said, highlighting parts of the expansion phase that became material in 2021.

Chief Financial Officer, Ardova Plc, Moshood Olajide said the company has continued to deliver on profits, as it ended first quarter with a profit after tax position of N1.6 billion, which is a growth of 37 per cent compared to same period in 2021.

“We also continued to increase our capital expenditure, principally in investments that facilitate our strategic expansion, and we expect to see returns within a three-year window.” Olajide said.

“As a group, we were negatively impacted by our subsidiaries, Axles & Cartage Limited, which faced operational environment issues and the newly acquired Enyo, which is presently undergoing a transformation process to drive operational efficiency and profitability. When subsidiaries are taken consideration the group loss amounts to N3.8 billion,” Olajide said.

He explained that the loss experienced in 2021 are an expected reflection of the strategic inorganic growth programme of the company, and do not affect the viability of the company, especially as some of the immediate benefits of this programme were illustrated by the better year on year performance recorded in the first quarter 2022 results.

He added that once fully integrated, the acquisitions alongside the AP Renewables subsidiary will provide and safeguard Ardova’s capacity to thrive as global energy consumption tilts to cleaner sources.

He noted that Ardova is a leading indigenous and integrated energy company involved in the distribution of petroleum products. With an extensive network of 700 retail outlets in Nigeria and significant storage facilities in Apapa, Lagos and Onne, Rivers State, Ardova procures and distributes petrol (PMS), diesel (AGO), Jet fuel (ATK) and liquefied petroleum gas (LPG).

The group services also involve the manufacturing and distribution of a wide range of lubricants from its oil blending plant in Apapa, Lagos. These lubricants include: Super V, Visco 2000 and Diesel Motor Oil. Ardova is also the sole authorised distributor of Shell branded automotive and industrial lubricants and greases.

As one of Nigeria’s leading suppliers of aviation fuel for local and international airlines, Ardova provides aircraft refueling services through its aviation joint user hydrants in Ikeja, Lagos and joint aviation depots in Abuja, Port Harcourt and Kano.

Family Homes Funds Limited (FHFL) has concluded arrangements to raise up to N20 billion from the alternative segment of the capital market.

FHFL, through its special purpose vehicle, Family Homes Sukuk Issuance Programme Plc (FHSIP), plans to float a N20 billion Series II Ijarah Sukuk, to complete its N30 billion Sukuk issuance programme.

In 2021, FHFL had accessed the market though its N10 billion seven-year 13 per cent Series 1 Ijara Lease Sukuk due 2028. The debut issue recorded an oversubscription of more than twice of the issue value.

Sources in the know at the weekend confirmed that arrangements have been concluded for the new issuance of Sukuk by FHFL. The N20 billion issuance will become the second-ever certified corporate Sukuk in Nigeria. The offer has already been reviewed and certified by the Central Bank of Nigeria’s Financial Regulation Advisory  Council of Experts (FRACE) and also duly registered with the Securities & Exchange Commission (SEC).

FHFL will be offering a seven-year fixed rate  Sukuk Al-Ijarah to discerning investors through a book-building, pre-order system. Minimum subscription to the issue will be N10 million and thereafter in multiples of N1 million. The Sukuk will, thereafter, be listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange.

Family Homes Sukuk Issuance Programme is rated BBB+ by Global Credit Rating (GCR) and Bbb by Agusto & Co. The Sukuk issuance is rated on its own BBB+ by GCR and A+ by Agusto & Co.

Rental distribution will be semi-yearly in arrears over the life of the Ijarah while repayment will be by amortised principal repayment over the life of the Ijarah.

The net proceeds of the Sukuk issuance will be used to finance development of affordable homes for low income households.

FHFL is a quasi-government entity owned by the Federal Government of Nigeria, through the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority (NSIA). It was established to impact the quality of lives of Nigerians, particularly the poor and vulnerable.

FHFL’s fund raising is to support its focus on providing decent home as a pivot towards necessary comfort and security for citizens on low income. FHFL believes there is a need to bridge the infrastructural deficit of decent homes for Nigerians estimated to be at 22 million, particularly for those on low income.

As a social housing initiative promoted by the government as part of its social intervention programme; FHFL plans to invest up to N1.3 trillion in the development of 500,000 affordable homes nationwide over the long-term. In the process, this is also expected to create up to 1.5 million jobs whilst enabling homeownership.

Family Homes Funds initiative is in line with the New Urban Agenda and the United Nations Sustainable Development Goal of promoting sustainable cities and communities, reducing  poverty, promoting good health and well-being, economic growth, and reducing inequalities-Sustainable Goal No. 11.

Nigerian Breweries (NB) Plc has listed 145.1 million additional shares after many shareholders opted to convert their cash dividends to ordinary shares in the company.

The additional shares totalling 145.1 million arose from 2021 scrip dividend election scheme of the company.

With the additional shares, the total issued and fully paid up shares of Nigerian Breweries has now increased from 8.08 billion to 8.221 billon ordinary shares of 50 kobo each.

The board of Nigerian Breweries had recommended an option for qualifying shareholders to receive new ordinary shares in the company instead of the cash final dividend, on terms and conditions as the board may determine based on prevailing market conditions.

Shareholders subsequently voted for the cash-for-share dividend option at the company’s Annual General Meeting in May 2017 and has been running since.

Sterling Bank Plc has been adjudged as the best participating financial institution under the National Farmer of the Year Award of the Agricultural Credit Guarantee Scheme Fund (ACGSF) of the Central Bank of Nigeria (CBN)

In a letter informing the bank of the award, Secretary of the ACGSF, Mr. Edwin Nzelu said: “Sterling Bank Plc has distinguished itself under the scheme by its national support to small holder farmers in the year.

“It is, therefore, our pleasure to inform you that Sterling Bank Plc has emerged as the ACGSF Best Participating Financial Institution of the Year in the National Category and would bepresented with the award at the ceremony.”

The ACGSF explained that Sterling Bank was recognised for its payout of more than N136.88 million to farmers across the country from January to December 2021 under the ACGSF.

Agriculture is one of the five sectors that Sterling Bank has concentrated investments in since 2018 as part of its HEARTs of Sterling programme in a bid to make significant impact in the economy. The other sectors are Health, Education, Renewable Energy and Transportation.

The ACGSF was established by Act No. 20 of 1977 and started operations in April 1978. Its original share capital and paid-up capital were N100 million and N85.6 million, respectively.  The Federal Government holds 60 per cent of the shares while the CBN holds the remaining 40 per cent.

The capital base of the scheme was increased to N3 billion in March 2001. The Fund guarantees credit facilities extended to farmers by banks up to 75 per cent of the amount in default net of any security realised.

The fund is managed by the CBN, which handles the day-to-day operations of the scheme. The Guidelines stipulate the eligible enterprises for which guarantees could be issued under the scheme.

Between 1978 and 1989 when the government stipulated lending quotas for banks under the scheme, there was consistent increase in the lending portfolios of banks to agriculture, but after the deregulation of the financial system, banks started shying away by reducing their loans to the sector due to the perceived risk.

In order to reverse the declining trend, several innovations and products were introduced under the scheme such as the Self-Help Group Linkage Banking, Trust Fund Model and Interest Draw Back.

PremiumTrust Bank has opened a new branch in Effurun, Uvwie Local Government Area of Delta State.

The bank, which commenced  commercial operations in April, this year, opened its fifth branch in the commercial hub of Delta State.

Welcoming guests at the tape-cutting event held at the new edifice, Managing Director, PremiumTrust Bank, Mr Emmanuel Emefienim, noted that though the bank was new, it parades seasoned bankers with more than 150 years of experience in the industry.

“PremiumTrust Bank is a new bank licensed by the CBN some months back, but it is not entirely new because the management team behind the bank have vast experience in the industry,” Emefienim said.

He highlighted that between April 19, this year, when the bank first commenced its business, the Effurun branch became the fifth branch the bank had opened.

“Today marks a major landmark for PremiumTrust Bank as we open our fifth branch. It should also be noted that within the next two weeks, the Abuja branch will be opened – that makes it six branches in a row,” Emefienim said.

He said the speed at which branches are being opened underscores the fact that the people behind the bank understand the business – saying: “We are not in it to make up the numbers but to make a whole lot of difference in the industry.

He said the choice of Effurun was well-thought-out, as it is the commercial nerve centre of the state.

“We will deliver the type of service that is peculiar and unique not just to PremiumTrust Bank but to the host communities,” Emefienim added.

He said the bank has come into the   industry not just to increase the number of banking options available to customers, but to do things differently. He highlighted three things that would happen in Effurun as a result of the bank’s entry into the market.

He said: “Firstly, we will be co-creating with our customers to provide customised solutions suited to their needs. Because we understand the customers, we will not throw up products and push them into the market. We want them to be part of the solutions.”

Detailing how the products would be developed, he said; “We will sit with them (customers), consider their needs and come up with solutions that will be tailor-made to address those needs.

“This is unique, and we have started doing it already. In less than three months that we have been in business, we have become the toast of many customers.

“Secondly, the response time from banks to customers is usually a big challenge. In PremiumTrust Bank, we will not only deliver value, but we will always do so with a sense of urgency – this speaks to our speed at execution. When you understand the business and what the customer wants, it is easy for you to respond to their need in record time.

“So, we deliver service to customers, but we do them with a sense of urgency.’’

executing in a timely manner.

“Thirdly, we will do business not just to make a profit but to impact the community where we serve. One certain thing is that we will not leave Effurun the way we met it.

“Our slogan is – Together for growth. We will support and grow businesses. We will impact the environment. We will touch lives. I am sure that we will make a positive impact within the community. So PremiumTrust is here to stay, and we will deliver the kind of value that will exceed expectations by the grace of God”, he reiterated.

In his remarks, the Ovie of Uvwie Kingdom, HRM Emmanuel Sideso Abe I, who graced the occasion with his council of chiefs, offered his royal blessings to the bank to grow and open more branches in the commercial city.

“We will continue to pray to ensure that you have a conducive atmosphere to transact your business in Uvwie and its environs”, the monarch assured.

Continuing, he said; “Choosing Uvwie to open this branch was not a mistake, and I am praying that more branches will be opened in this place within a short time. You have made it clear that you are not leaving Uvwie empty and not leaving Uvwie, so we want more branches in Uvwie. I pray almighty God to bless your staff and create a conducive atmosphere for you so that they (staff) can grow with the Bank.

The monarch urged the management of the bank to carry the host community along as promised, saying; “if you are operating in an environment, it is necessary that you plough back to the environment. I see your bank as one which will bring growth and development to the people in this environment, and we will do everything to support you”.

He described the bank as a first-class bank and one in a million among the comity of banks in the country, saying; “First, I thank God for having PremiumTrust Bank here. I have gone round the facilities, and it is top of the class of any bank based here. Like I said earlier, we will continue to pray for the growth of this bank”.

Speaking to journalist, Pastor Sunday Edward Akande, an Assistant Continental Overseer of the Redeemed Christian Church of God (RCCG) expressed delight over the setting up of the branch of the bank in Uvwie, saying that it was a good decision. “We are very confident with the bank because looking at the number of people here and the calibre of staff, we are confident that it is a bank we can trust.

Delta state Coordinator of the Nigerian Upstream Petroleum Regulatory Commission, Engr. Godwin Iruafemi, said it was time to have such a bank in the area, adding that, it is clear that PremiumTrust is prepared for business development and finding solutions to customers’ needs.

Nigeria’s oil production and revenue outlook remains cautious and there may be no significant improvement in the performance of the critical oil sector in the months ahead.

Vetiva Capital Management Limited, a leading investment finance and research group, at the weekend expressed concerns that the country’s oil output and revenue performance could remain unchanged despite the current global opportunities.

In its second half outlook report titled “A strange labyrinth” , Vetiva stated that the outlook for the country’s production is somewhat cautious, and there is no expectation of a significant deviation from current production levels.

Oil and gas analyst at Vetiva, Victoria Ejugwu noted that although OPEC has consistently eased production cuts, Nigeria’s crude output has remained below agreed quotas.

According to her, despite the fact that OPEC has been unwinding production caps, Nigeria’s crude output has fallen below expectation due to some operational problems, as well as issues stemming from insecurity.

She added that while oil prices have soared higher, the oil industry continues to contract, due to underproduction.

Vetiva anticipates further contraction of seven per cent in the third quarter and a marginal growth of 0.1 per cent in fourth quarter of the year.

On the downstream sector, Vetiva highlighted the impact of PMS price regulation on profitability margins.

“With the oil price rally we have seen this year, the Nigerian government continues to maintain subsidy payments, keeping PMS retail pump price at N165 per litre. As such, gross margins of about 5.0 per cent from PMS sales have remained thin.

“Although the enactment of the PIB is supposed to bring about market deregulation, however, given that the general elections are around the corner, full deregulation is not expected in the near term. On this note, downstream players would continue to see low margins in the coming months,” Vetiva stated.

Vetiva Research projects that Brent price will average $105 per barrel for the full year, citing continuous recoveries in global oil demand as well as slower supply growth from OPEC amid production hitches from its members.

“The oil market may continue to face tightness given low supply prospects and soaring demand; as such, prices are expected to remain elevated,” Vetiva stated.

The research firm however noted that a significant downside risk to oil prices remains the possible re-emergence of the COVID-19 virus.

“The virus is here to stay with us, with new variants springing up from time to time. We saw what happened with China in second quarter, with the virus putting Shanghai on lockdown. Despite vaccination efforts, re-infections could stem lockdowns and movement restrictions. This remains a downside risk for oil prices, as movement and travel restrictions could stifle demand,” Ejugwu stated.

Vetiva is a pan-African financial services company incorporated in Nigeria and duly regulated and registered by the Securities & Exchange Commission (SEC) to carry on business as an issuing house and financial adviser. Also, the company, through subsidiaries, is registered to act as fund and portfolio managers, trustees and broker-dealer by SEC.

Presco Plc has received approval to list its N50 billion bond on the FMDQ Securities Exchange Limited (FMDQ Exchange), providing bondholders a secondary platform to trade on their holdings.

FDQ Exchange approved the listing of Presco’s N34.50 billion Series 1 Fixed Rate Bond. The bond was under Presco’s N50 billion bond issuance programme.

Presco is an integrated agro-industrial establishment that specialises in the cultivation of oil palm plantations and milling and crushing palm kernels to produce a range of refined vegetable oil. It also has an olein and stearin packaging and biogas plants to treat its palm oil mill effluent.

The net proceeds generated from the bond would be used by the to refinance existing facilities from banks and to augment working capital requirements.

“As a securities exchange with a commitment to facilitate growth and development in the debt capital market and economy at large, FMDQ Exchange continues to show its commitment to promote an efficient, transparent, and well-regulated market, which attracts and retains both domestic and foreign investors, through the provision of a world-class listing and quotation service, amongst others, in line with its mandate,” FMDQ stated.