Category: Capital Market

Sterling Bank Plc has partnered the Nike Art Gallery to install solar panels at the gallery through the bank’s imperium outlet as part of its commitment to a renewable energy-powered Nigeria.

This was sequel to recent partnerships with the gallery to drive an appreciation as well as the investment opportunities available in the arts and tourism sectors in Nigeria.

The Nike Art Gallery, owned by Chief Nike Okundaye, is one of the largest of its kind in the West African sub-region with a collection of about 8,000 diverse artworks from various Nigerian artists.

Group Head, Renewable Energy, Sterling Bank Plc, Dele Faseemo, said the bank’s entire strategy was founded on the idea of improving lives by providing varied chances to its clients and prospective customers with an infusion of the bank’s HEART strategy.

According to him, the renewable energy sector is one of the five sectors of the economy that the bank is presently concentrating investments in. The other sectors are health, education, agriculture and transportation.

Okundaye has commended the bank over the gesture, stating that this installation will bring an infusion of sustainability and take the gallery into Nigeria’s energy future.

Divisional Head, Retail and Consumer Banking, Sterling Bank Plc, Shina Atilola added that the bank strives to enrich lives and unlock new opportunities in Nigeria’s tourism sector through partnerships with key tourism industry players as well as other sectors where investments are being focused under its HEART’s of Sterling programme.

He said the partnership Nike Art Gallery was an indication of the bank’s unwavering commitment to assisting and growing the tourism sector as well as its long-standing commitment to developing an alternative energy system for a better Nigeria.

Atilola said the commitment to install the solar panels, which was completed in January 2022, began at the World Tourism Day organised by the bank at the gallery.

Faseemo called on Nigerians to take advantage of the green and sustainable power solutions available through Imperium and also engage the bank on tourism discussions to explore opportunities that can be beneficial to individuals, businesses and the environment.

He urged interested prospects to equally approach officers of the bank for discussions on other products of the bank.

According to him, as a show of the bank’s commitment to consolidating on the signs of growth of the economy in the wake of the Covid-19 pandemic, the bank has also expressed its desire to continue to support the tourism sector with about N10 billion. It is currently in partnership with Ekiti State and other state governments in the country to explore the development of their tourism assets.

MeCure Industries Limited at the weekend listed two series of commercial papers (CPs) worth N1.93 billion on the FMDQ Securities Exchange.

MeCure Industries listed its N490 million Series 1 and N1.44 billion Series 2 commercial papers on the FMDQ Exchange. The two series of CPs were issued under the company’s N20 billion CP issuance programme.

Chairman and Chief Executive Officer, MeCure Industries Limited, Mr. Samir Udani, stated that the issuance would help the company to meet its short-term working capital and funding requirements.

He said the net proceeds of the issuance would also strengthen the pharmaceutical company’s commitment to building and shaping positively, the healthcare industry in Nigeria.

He noted that MeCure Industries is a leading human therapeutics company in the pharmaceutical industry in Nigeria pointing out that MeCure Industries pioneered the development of novel products and launched the pharmaceutical industry’s first tablet in a capsule formulation called ‘Liquitab Floatcap’.

Executive Director, Cordros Capital, Mr. Femi Ademola, the sponsor of the CP, said that Cordros Capital is proud to have sponsored the quotation of the MeCure Industries’s commercial papers.

“This transaction has provided an alternative source of funding to the Issuer and will assist in bolstering its working capital. Hence, positioning it as a leader in the pharmaceutical industry,” Ademola said.

FMDQ Exchange assured that it would continue to work collaboratively with market stakeholders to align Nigeria’s debt capital market to international standards.

According to FMDQ, as issuers tap the Nigerian debt capital market to meet their funding needs effectively and sustainably as well as contribute to the development of the nation through their activities, FMDQ will through the promotion of product and service innovation and the championing of key market development initiatives, take commendable steps to ensure that growth and development opportunities abound for the markets under its purview.

Heineken will today open application list for a N3.11 billion takeover bid of minority shares in Akwa Ibom-based Champion Breweries, a move that may increase the controlling equity stake of the Netherlands-based Heineken in the Nigerian brewer to about 76 per cent.

Transaction report obtained at the weekend indicated Heineken, through its wholly-owned subsidiary, Raysun Nigeria Limited, plans to acquire about 1.197 billion ordinary shares of 50 kobo each or about 15.3 per cent additional stake in Champion Breweries under a mandatory takeover bid (MTO). The transaction price is N2.60 per share.

Application list for the MTO, approved by Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), opens today, Monday, January 10, 2022 and will close on Monday, January 31, 2022.

The qualification date for the MTO was Friday, December 31, 2021, implying that only minority shareholders of Champion Breweries as at the close of business on December 31, 2021 can participate in the ongoing offer. Shareholders may accept the MTO at their discretion.

Heineken holds the majority equity stake in both Nigerian Breweries and Champion Breweries, which are both quoted on the NGX. Heineken, through Raysun Nigeria Limited, holds 60.7 per cent majority equity stake in Champion Breweries.  Akwa Ibom State holds 10 per cent equity stake while other Nigerian shareholders hold 29.3 per cent equity stake.

Champion Breweries’ current shareholding base of 7.83 billion ordinary shares of 50 kobo each include 4.75 billion for Raysun Nigeria, 782.9 million ordinary shares for Akwa Ibom State and 2.29 billion ordinary shares for other investors.

The acquisition of the full MTO target of 1.197 billion ordinary shares will increase Heineken’s Raysun Nigeria’s shareholding from 4.752 billion shares or 60.7 per cent to 5.949 billion ordinary shares or about 75.99 per cent equity stake.

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The MTO was triggered by the provisions of Section 131, Part XII of the Investment and Securities Act, No. 29, 2007 and Rule 445 of SEC Rules and Regulations, 2013.

Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders. There are however exemptions in few instances.

In a statement signed by Chairman, Champion Breweries Plc, Dr Elijah Akpan, the company noted that the board of Raysun Nigeria had on May 10, 2021, granted approval for the MTO to be made to all the other shareholders of Champion Breweries other than Raysun Nigeria.

Raysun then received SEC’s authority to proceed with the offer and subsequently filed the offer document with the SEC for registration.

It is unclear whether Heineken will, after the MTO, consider merging Champion Breweries with Nigerian Breweries, although it had rebuffed such suggestion in the past.

Champion Breweries’ principal activities now consist of contract brewing services to Nigerian Breweries as well as brewing and packaging of Champion Lager Beer and non-alcoholic Champ Malta.

Shareholders had earlier urged Heineken to merge the two companies noting that the consolidation in the breweries sector had placed a multiple-entities strategy in disadvantage as major investors such as SABMiller and Diageo consolidate their operations in Nigeria to create critical mass that can drive turnover in the increasingly competitive market.

Nigeria’s pioneer non-interest ban, Jaiz Bank Plc has marked its 10 years of operations and growth, with a reassurance to sustain growth and impact more positively on all stakeholders.

Jaiz Bank commenced operations on January 6, 2012 with three branches in Abuja, Kaduna and Kano.

Its Managing Director, Hassan Usman said despite paying the huge costs associated with pioneering, the bank was able to break even within the first three years of operation, which was unprecedented at the time.

According to him, from a modest balance sheet size of N12 billion in 2012, the bank closed 2020 financial year at N278 billion and grew all other key performance indices exponentially over the years.

He pointed out that through its’ unique value proposition, Jaiz Bank has, within a decade, made remarkable impact in empowering women, driving financial inclusion and supporting various strata of businesses in the real sector of the economy, agriculture, real estate, construction, oil and gas and general commerce among others.

He added that within the 10-year period, the bank was rated by the Islamic International Rating Agency (IIRA), assigning it an investment grade rating of BBB and most recently, the bank also got an upgrade from both Agusto and GCR to BBB and BBB- with stable outlook. Besides, Fitch also did its first rating of the bank and came out at the same impressive level.

He said that it was therefore not surprising that the bank gained international recognition as it won the Most Improved Islamic Bank award for 2020 and 2021 consecutively from the Global Islamic Finance Awards (GIFA), among other accolades.

Read Also: Jaiz Bank grows profit by 54% to N3.3b in Q3

“The journey was much like a roller coaster – you experience some degree of fear at the onset, but subsequently excitement takes over when the carriage takes off and you feel that euphoria of defying the odds of gravity. After the take-off, momentum is gradually gathered and stopping the coaster becomes not an option, the wisest thing to do is making every jerk and movement worthwhile and impactful. That was what we did, we lived every moment, learning from each mistake, supporting our customers through thick and thin while pressing on – despite the absence of essential non-interest banking enablers – to pioneer a nascent sub-sector that is now bourgeoning with players and accolades.

“We are happy to pioneer an industry that was not there; creating confidence for other people to come in; and we believe that we’ve done that very well. The year 2022 is special to us as it marks a decade of progress in our Islamic banking journey and I am extremely fulfilled for the opportunity of leading the team for a larger part of the journey. From a very humble beginning in 2012, the bank has successfully developed a remarkable brand that is iconic both locally and internationally,” Usman said.

He gave glory to Allaah and commended the regulators, customers, board, management, staff and other stakeholders for their tremendous support.

He assured that the bank is poised to leverage on its’ market acceptance and continue to innovate in order to consistently deliver superior customer experience in the dynamic business environment, hence maintaining its clear leadership in the non-interest banking space.

“We remain true to our vision by building the second largest non-interest bank in Sub-Saharan Africa in just 10 years,” Usman said.

In 2021, analysts at Nairametrics adjudged the bank as the fastest growing among the listed banks in Nigeria as well as the 4th most efficient based on return on equity.  The international annual ranking by “The Asian Banker”-a Singapore-based leading provider of strategic intelligence on the financial services industry ranked Jaiz Bank 36th on the world’s strongest Islamic banks as at 2021.

Studio Press Nigeria Plc and Union Diagnostic and Clinical Services Plc at the weekend delisted their entire issued shares from the Nigerian Exchange (NGX), closing secondary transaction on the shares of the two companies.

The delisting of the two companies marked the conclusion of the buyout of minority shareholders by core investors, who opted to turn delist the shares of the two companies.

Minority shareholders of Studio Press had sold their shareholdings to the company’s majority shareholder, Federated Resources Nigeria Limited at N1.99 per share. Preparatory to the delisting, the NGX had on December 17, 2021 suspended trading in the shares of Studio Press to prevent trading in the shares of the company beyond the effective date of the scheme of arrangement for the buyout.

Minority shareholders of Union Diagnostic had also accepted a N492.75 million deal to sell their shares to Cedar Advisory Partners Limited, in a buyout that led to the delisting of the only listed health laboratory science company.

Minority shareholders transferred their shareholdings totalling 39.62 per cent to Cedar, which already held 20.04 per cent equity stake Union Diagnostic, thus increasing Cedar’s majority shareholding to 59.66 per cent, making Cedar the single largest shareholder in the company.

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The deal involved transfer of some 1.408 billion ordinary shares of 50 kobo each of Union Diagnostic held by sundry minority shareholders to Cedar at 35 kobo per share. Shareholders of Union Diagnostic had given their final approval to the scheme of arrangement for the buyout and also consented to probable modifications by the Federal High Court, technically completing the deal.

The transaction price of 35 kobo per share then represented a premium of 75 per cent on the company’s last closing price on March 16, 2020 and 70.1 per cent on 90-day volume weighted average share price.

At the court-ordered meeting in Lagos, shareholders approved the scheme of arrangement for the buyout dated Monday, December 7, 2020 and also authorised the board of Union Diagnostic to “consent to any modifications of the scheme of arrangement that the Federal High Court or any regulatory authority may deem fit to impose or approve”.

The meeting also empowered the board of Union Diagnostic to take “all necessary steps and to consent to any modification of the scheme of arrangement that the Federal High Court shall deem fit to impose or approve”.

The board of directors of Union Diagnostic, which initially received the binding offer for the buyout from Cedar, a healthcare investment firm, had considered and recommended the transaction to shareholders for consideration at the court ordered meeting.

The Federal Government at the weekend listed its latest monthly issuances of savings bonds on the Nigerian Exchange (NGX), paving the way for investors to trade on the bonds issued in December 2021.

The Debt Management Office (DMO), which oversees government’s debt issuances and management, had last December offered a two-year FGN Savings Bond due December 15, 2023 at a coupon of 7.322 per cent per annum. It also simultaneously offered a three-year FGN Savings Bond due December 15, 2024 at coupon of 8.322 per cent per annum.

The two bonds were continuation of the monthly Federal Government of Nigeria (FGN) Savings Bonds (FGNSBs). The December 2021 offer was the 54th tranche of the savings bond, introduced in 2017.

Regulatory circular at the weekend indicated that a total of 99,014 units of the two-year bond valued at N99.014 million and a total of 203,036 units of the three-year bond worth N203.036 million were listed at the NGX. The bonds were listed at par value of N1,000 per unit.

The coupon payment dates for the bonds, which pay interest rate quarterly, are March 15th, June 15th, September 15th and December 15th.

The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilization of savings and investments. Minimum subscription to the FGNSB is usually N5, 000 while the bond pays coupon or interest rate on a quarterly basis.

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Usually, the minimum subscription to the bonds, offered at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

GTI Securities Limited, one of the authorised distribution agents for the FGNSB, noted that the savings bonds help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.

According to the stockbroking firm, FGNSB enables Nigerians opportunity to participate in and benefit from the favourable returns available in the capital market.

GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.

The bonds are usually listed on the stock exchange for trading, thus providing liquidity for investors who want to exit before maturity.

Savings bonds are good for savings towards retirement, marriage, school fees and house projects among other targets while assuring on its safety as the bonds are backed by the full faith and credit of the Federal Government.

Union Bank of Nigeria (UBN) Plc has partnered with Kucheza, a gaming company, to organise another edition of the Mobo Game Jam. UBN’s Edu360 is supporting the social innovation competition for the second consecutive year.

Also supported by United Kingdom (UK)-based Digital Schoolhouse, MoboGame Jam is an annual game-making competition which sees young innovators between the ages of eight and 18 from Nigeria and the UK going head-to-head to create games that solve pressing social issues.

Chief Brand and Marketing Officer, Union Bank of Nigeria, Ogochukwu Ekezie-Ekaidem, said the goal of the challenge is to promote gaming as a tool to harness the power of creativity and imagination of young people, while bridging the digital skills gap within our educational system.

She noted that last year’s edition, tagged ‘Future on Tap’ received over 1,000 submissions of game prototypes that explored how to achieve a future where everyone has access to clean water.

According to her, as a response to the United Nations Sustainable Development Goal 13 on climate action, this year’s challenge, with the theme, Carbon Neutrality and Clean Air, will invite participants to imagine a world with reduced carbon footprint.

“Individuals and teams who meet the age requirement are invited to submit their entries – a game or game concept – in line with the set brief, combining creativity, compassion, and computational thinking to solve the global problem of carbon emissions.

“We are proud to partner with Kucheza Gaming on the Mobo Game Jam competition for the second year running.

“At Union Bank, we are convinced that strategic investments in education are critical if our nation is to take its place on the global stage. This is why our edu360 platform leverages partnerships like this to drive our objective of accelerating access to education, enhancing quality of instruction, and improving learning outcomes so Nigerian children are well prepared to compete and excel in a technology-enabled world,” Ekezie-Ekaidem said.

Interested participants can submit their game prototypes in video format either physically or virtually before the deadline of February 25, 2022.

Winners will be rewarded with cash prizes and laptops for individuals and computing labs for winning schools. There will also be a live showcase for the top entries. Participants will also have access to free weekly masterclasses and tutoring sessions from industry experts to help improve their digital skills.

Wema Bank Plc has been named as the ‘Most Innovative Digital Bank’ in Nigeria at the 2021 Digital Banker Africa Awards.

Digital Banker Africa, a  magazine and website media organises the Digital Banker Africa Awards to celebrate organisations from across Africa that stand out with outstanding innovation, infrastructure and development along with the use of pioneering technology to support their business and customers.

The award’s judging panel comprises professionals with a combined experience of over 110 years of financial and business journalism experience, and is supported by a team of researchers who have ensured that the award winners are the most deserving in their category.

Managing Director, Wema Bank Plc, Mr. Ademola Adebise, said the latest award further recognises Wema Bank’s consistent innovativeness in delivering value to its stakeholders, enabling its customers to bank with ease and live their desired lifestyles.

Last month, ALAT by Wema, was awarded the ‘Most Outstanding Digital Bank Brand of the Year Award’ at the 2021 Brandcom Awards, which honours brands, agencies, and notable individuals in the brands and marketing communications industry who have distinguished themselves with tangible and laudable impact.

He said the latest award attests to the bank’s digital growth and confirmation of its position as a leading innovative financial institution.

“We are grateful for this honour recognising our relentless effort in becoming Nigeria’s leading innovative digital bank. We dedicate this to all our customers who trust us and have continuously made us and our game-changing digital bank, ALAT their first choice,” Adebise said.

He said that the award would further motivate Wema Bank to do more in the service of its customers.

“This recognition serves as an encouragement for us to continue to build on our successes and invest more in our product offerings. We are committed to improving the lives of our customers in every way, enabling them to make it through each day in the best and easiest way possible with our services,” Adebise said.

According to him, the bank’s passion to solidify its position as a leader in the digital banking space has seen it build a robust portfolio of digital solutions tailored to meet a diverse pool of customers and tailor-made to suit the dynamic lifestyles of students, budding entrepreneurs and young professionals.

He noted that the bank was the first to pioneer card control, a solution that allows customers secure their payment cards by locking and unlocking their cards directly from their mobile phones, also offering USSD Banking through its *945# platform.

He pointed out that these achievements and solutions have earned the bank several other accolades including Excellence in Branchless Banking, Digital Banking Platform of the Year and Best and Innovative Digital Solution.

NGX Regulation (NGX RegCo) Limited, the self regulatory organisation (SRO) regulating the Nigerian Exchange (NGX) has reassured quoted companies and the general investing public of its continuing commitment to promoting a fair, transparent, and orderly Nigerian capital market.

Speaking at the 2021 Issuers’ Engagement Forum with the theme: Corporate Disclosures – Beyond Numbers, Chief Executive Officer, NGX Regulation (NGXRegCo) Limited, Ms. Tinuade Awe said that with the increasing levels of shareholders’ activism and greater levels of scrutiny on financial performance, the qualitative aspect of information disclosure is becoming more imperative for businesses as much as the quantitative form of information.

According to her, the impact of the COVID-19 pandemic is still very much visible across the global economy. Whilst many businesses are either closed or waiting for the economy to open up, others have weathered through the storm created by the pandemic, leveraging on their continuity plans built on sustainable business models. The theme of this year’s forum was thus aptly couched to reflect the realities of today’s world.

She noted that continuous engagements with stakeholders are particularly important because the capital market is information driven.

She said NGX RegCo continues to encourage issuers to show transparency in their business activities through timely disclosure of price sensitive information to the market to prevent information asymmetry.

She reiterated the commitment of the regulator in working with issuers to guide them through complying with NGX’s post listing obligations as well as other regulatory requirements for public listed companies, particularly with regards to upholding good governance practices that thrive on accountability and enhanced information disclosure.

It would be recalled that NGX released its sustainability disclosure guidelines in December 2018. The guidelines provide the value proposition for sustainability as well as a step-by-step approach on integrating sustainability in organisations, and detail indicators that should be considered when providing annual disclosure to NGX.

The Securities and Exchange Commission also recently introduced its Guidelines for Sustainable Financial Principles for the Nigerian Capital Market in April 2021. These and other efforts by the government, market regulators and policy makers in the sustainability space point to the increasing importance of sustainability reporting in the context of enhanced corporate disclosures.

The event featured a keynote address from Professor Kenneth Amaeshi, Visiting Professor of Leadership & Financial Markets in Africa, London School of Economics & Political Science. There was also a panel session featuring Dr. Innocent Okwusa, Visiting Associate Professor, Caleb University & 1st Deputy Vice President, ICAN; Professor Carol Adams, Professor of Accounting, Durham University Business School; Ms. Eunice Sampson, Director, Climate Change and Sustainability West Africa, Ernst & Young; Mr. Elan Theebom, ESG Specialist, Arise; with Mr. Olumide Lala, Co-Founder and Director, Climate Transition Limited serving as panel moderator.

Neveah Limited, a commodities trading company dealing in the export of solid minerals and agricultural products, has successfully raised N2.72 billion in short-term capital.

The new capital was raised through a N2.72 billion Series 1 Commercial Paper (CP), the first tranche of the company’s N10 billion commercial paper issuance programme.

Chief Executive Officer, Neveah Limited, Mr. Ibidapo Lawal said the company’s maiden CP issuance recorded oversubscription.

He said the net proceeds from the new issuance would enable the company to meet export commitments to its international clients, which include some of the world’s largest commodity traders.

“We are delighted at the opportunity to access an alternative source of funding to meet our short-term working capital needs and look forward to further engagement with the capital markets in future,” Lawal said.

Head, Capital Markets and Advisory, United Capital Plc, Mr. Babatunde Ajayi said United Capital acted as the sponsor and sole arranger on the debut issuance of Neveah Limited Series 1 CP.

According to him, United Capital’s investment banking team advised Neveah on the optimal structure with which to approach the markets, which led to the company raising 30 per cent more than the intended sum of N2 billion.

“The success of this transaction underscores United Capital’s commitment to critical growth segments of the Nigerian economy, as we intend to harness our middle-market clients across the African continent into shining global leaders,” Ajayi said.

FMDQ Securities Exchange has approved the quotation of the Neveah N2.72 billion Series 1 CP on its platform.

FMDQ stated that the quick and effortless time to market of the Neveah CP is a testament to FMDQ Exchange’s unwavering commitment to the continuous development of the Nigerian debt capital market.

“Access to capital remains a top priority for corporates, as low-cost capital is required to fund business expenses, expansion aspirations and existing debt obligations. The debt capital markets  satisfies this requirement by providing sustainable and efficient financing through access to capital, thereby helping corporates diversify their funding.

“FMDQ Securities Exchange, through its listing and quotation service, continues to enable corporates tap the Nigerian debt capital market by providing uninterrupted access to a credible and robust platform which allows for capital raising, risk management and transfer of value,” FMDQ stated.

According to the Exchange, Neveah CP, like all other securities listed, quoted and traded on the exchange, shall be availed global visibility through the exchange’s website and systems, transparency through its inclusion in the FMDQ Daily Quotations List, governance and continuous information disclosure to protect investor interest, credible price formation, enhanced secondary market liquidity, amongst other benefits derived from its preferred admission to the FMDQ Exchange platform.