Mixta Real Estate Plc has listed three new commercial papers worth N7.72 billion on the FMDQ Securities Exchange Limited, paving the way for secondary market trading on the securities.

The three commercial papers (CPs) included Mixta Real Estate N2.07 billion Series 42, N0.99 billion Series 43, and N4.66 billion Series 44 CPs. They were issued under the company’s N20 billion CP issuance programme.

The net proceeds of the issuances would be used by Mixta Real Estate to finance short-term funding requirements.

The listing allowed Mixta Real Estate to benefit from FMDQ Exchange’s diversified investor base, highly responsive and efficient listing and quotation processes as well as credible benchmark pricing required for appropriate portfolio valuation among others.

Read Also: Sterling Bank launches free services for NGOs

Mixta Real Estate, a subsidiary of Mixta Africa, specialises in the development of urban infrastructure and affordable housing and was established with the objective of responding to the existing housing deficit across the African continent.

FMDQ Exchange noted that continuing quotations on its platform from companies across diverse sectors of the economy continue to validate FMDQ as the choice platform for the registration, listing and quotation of debt securities in the Nigerian financial market.

“It also lays credence to the innovation, efficiency, and operational excellence for which the Exchange is reputed for as endorsed by issuers, investors, and other market stakeholders.

“FMDQ Exchange will continue to remain innovative even as it continues to provide timely and cost-efficient listing and quotation services to support its stakeholders, particularly issuers and investors, towards accessing capital in the Nigerian financial market, amongst other service offerings,” FMDQ stated.

First Bank of Nigeria Limited has launched a mobile banking application, LIT Application, which was created to improve the culture and experience of mobile banking in Nigeria.

Chief Executive Officer, First Bank of Nigeria Limited, Dr. Adesola Adeduntan,  said the LIT App was designed to strengthen the bank’s commitment to its customers by ensuring the continued safety of their funds and providing them with access to renewed transformative and adaptable solutions especially in today’s digital world.

According to him, developing the application was essential to make certain that customers have more ways to seamlessly interact with the bank.

“The LIT App is the latest addition to the bank’s robust electronic banking family, with others being the multiple global award-winning FirstMobile, *894# USSD Banking, FirstOnline internet banking, WhatsApp chat banking, amongst many others,” Adeduntan said.

Read Also: Kia relaunches Ownership Reward Programme

He said the banking app exposed customers to a wealth of opportunities to promote their safety, convenience whilst ensuring they are at an edge in today’s digital banking world.

“It is a mobile banking app developed and owned by the bank and configured with a wide range of exciting features to meet the needs of its dynamic customers.

“The LIT application is not just about bills payment, funds transfer or airtime recharge, but also the app is equipped with several other exciting features that reiterate the bank’s resolve to continually expand its digital architecture to modernise its interaction with customers, irrespective of where they may be across the world.”

“These functions of the LIT app include: multiple transfers which allow customers to select several beneficiaries at once for a single transfer; account opening opportunities for non-customers as well as account management, enabling customers to identify their relationship managers for immediate assistance, should the need arise.

“In addition, customers can generate bank statements with options to download as pdf or send an email whilst having receipts generated as far back as one wants. With the LIT app, customers are also able to log and manage their complaints without having to visit the branch. The LIT app is not all about usage but rewards as users are rewarded for using the application,” Adeduntan stated.

 

United Capital Plc has listed three series commercial papers worth about N19.72 billion on the FMDQ Securities Exchange, paving the way for investors in the short-term securities to trade on their holdings.

United Capital at the weekend listed its N1.56 billion Series 5, N13.99 billion Series 6 and N4.17 billion Series 7 Commercial Papers (CPs) on the FMDQ Exchange, signalling the completion of the recent raising of N19.72 billion short-term capital by the investment banking group. The CPs were issued under the company’s N50 billion commercial paper issuance programme.

The net proceeds of the new issuances would enable the company to provide a wider range of wholesale financing solutions to its clients as well as complement its funding base and support the growth of the overall business.

United Capital is a leading financial services group focused on leveraging technology to empower businesses, individuals and governments with excellent financial services.

Meanwhile, the Nigerian Exchange (NGX) Limited has upgraded United Capital from a low-priced stock to a medium-priced stock following recent appreciation in the share price of the company.

Read Also: Neimeth posts N2b turnover in nine months

According to the NGX, a review of United Capital’s stock price and trade activities over the most recent six-month period provided the basis for reclassifying the company from the low-priced stock group to the medium-priced stock group.

The reclassification also necessitated the attendant change in the tick size change from one kobo to five kobo – in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015-Trading License Holders’ Rules.

The report showed that United Capital’s share price appreciated above the N5 price level on March 19, 2021 and traded above N5 up till close of business on July 30, 2021. This indicated that United Capital’s share price had traded above N5 in at least four months out of the last six months. With this, the company was reclassified from the low-priced stock group to the medium-priced stock group with effect from August 24, 2021.

The NGX classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price. A company must have traded for at least four out of the most recent six-month period within a stock price group’s specified price band to be classified into the category.

The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

The medium-priced stocks  consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

With the relative long-drawn lull in the primary equities market, several companies have turned to the debt capital market to raise much-needed funds, with most companies showing preference for commercial papers.

FMDQ Exchange had earlier last week listed new bonds and commercial papers worth about N70 billion. The new securities included Coronation Merchant Bank (MB) Funding SPV Plc’s N25 billion Series 1 Fixed Rate Bond, which was issued under the bank’s N100 billion bond issuance programme and Coronation Merchant Bank’s N1.29 billion Series 19 and N23.71 billion Series 20 Commercial Papers (CPs), which were issued under the bank’s N100 billion CP Issuance Programme in August 2021.

FMDQ Exchange also listed FSDH Merchant Bank Limited’s N2.28 billion Series 3, N1.79 billion Series 4, and N15.53 billion Series 5 Commercial Papers, which were issued under the bank’s N40 billion CP Issuance Programme.

FMDQ Exchange meanwhile has reiterated its commitment in taking necessary steps towards promoting transparency, governance, integrity and efficiency in the Nigerian commercial paper market and overall debt capital market.

“In keeping with its commitment to develop the debt capital market, FMDQ Exchange shall sustain its efforts in supporting issuers with tailored financing options to enable them achieve their strategic objectives, deepen and effectively position the Nigerian debt capital market for growth,” FMDQ Exchange stated at the weekend.

FMDQ Group is a vertically integrated financial market infrastructure (FMI) group, providing registration, listing, quotation and noting services; integrated trading, clearing and central counterparty, settlement, risk management for financial market transactions; and depository of securities; as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited.

 

Neimeth International Pharmaceuticals Plc recorded a turnover of about N2 billion and gross profit of N927 million within the first nine months of this business year.

Interim report  and accounts of the healthcare company for the nine-month period ended June 30, 2021 released at the Nigerian Exchange (NGX) Limited  showed that Neimeth International  Pharmaceuticals recorded turnover of N1.99 billion and gross profit of N927.01 million during the period. Operating profit stood at N198.27 million while profit before and after tax stood at N84.83 million each. With these, earnings per share closed the nine-month period at 4.47 kobo.

The balance sheet of the healthcare company continued to improve with total assets rising from N6.44 billion by the year ended September 30, 2020 to N6.52 billion by the third quarter ended June 30, 2021. Total equity funds stood at N1.23 billion.

Neimeth was adjudged as the best performing stock in the healthcare sector of the Nigerian capital market at the 2021 Nigerian Investors Value Award (NIVA). It was the third time since 2019 that the company has won similar award based on the performance of quoted companies on the Nigerian capital market, beating other leading quoted pharmaceutical companies.

Managing Director, Neimeth International Pharmaceuticals Plc, Pharm. Matthew Azoji, said the company has continued to show resilience despite macroeconomic challenges, which have been compounded by COVID-19 pandemic.

According to him, the company remained focused on its medium to long-term strategic plans of growing its production capacity and market share, being the front-leader creating enduring value for all stakeholders and combined strategy of growing market share while simultaneously creating value for shareholders.

Read Also: Stock Exchange sanctions Fidelity Bank, UACN, 4 others

He reaffirmed the commitment of the company to its vision of becoming a manufacturing hub for medicines and centre of excellence for pharmaceutical development in Africa.

Azoji said the company’s growth plan which included investment of some N5 billion in capacity expansion remains on course and early gains from these strategic initiatives should be major boosts for growth in the years ahead.

Shareholders of Neimeth had recently approved plan to inject fresh capital of N5 billion to fund construction of  a World Health Organisation (WHO) current standards of Good Manufacturing Practice (WHO cGMP) pharmaceutical manufacturing facility at Amawbia, near Awka in Anambra State.

The Amawbia plant was designed as a multi-products plant and will be presented to the World Health Organisation (WHO) for certification in line with its current standards of Good Manufacturing Practice (cGMP). Upon completion and certification, the plant is expected to provide foreign and local contract manufacturing services for drug production, research and development, formulation and validation services, among others.

 

The Federal Government has assured securities dealers that it would create an enabling environment for optimal utilisation of the financial market to achieve double-digit economic growth.

The government also reiterated its resolve to put an end to insecurity which has significantly dampened both foreign and local investor interest in Nigeria.

Addressing participants at the just- concluded national workshop on: “Leveraging the financial markets to achieve double digit economic growth for Nigeria”, organised by the Chartered Institute of Stockbrokers (CIS) in Abuja, the Federal Government assured that it would work with the regulators and operators of the capital market to address issues that would accelerate investment opportunities in the nation’s capital market.

In her presentation, the Minister of Finance, Budget and National Planning Mrs Zainab Ahmed noted that the Nigerian capital market had contributed immensely to the long term growth and development of the economy.

According to her, the Federal Government shall continue to enact laws that would further globalise the Nigerian capital market.

“There is a lot of work to be done in building the economy and achieving the pace that is needed to make double digit growth a reality. I wish to pledge government’s continuous support and partnership with the capital market and the Chartered Institute of Stockbrokers as we continue the task of nation building.

“The capital market has provided, over the years, access to significant long term development capital to the Federal Government and other tiers of government and private sectors.

Read Also: ‘Institutions, businesses driving force of economic growth’

“In an attempt to achieve a consistent economic growth, earlier in the life of this administration, government developed the Economic Recovery and Growth Plan (ERGP) 2017 – 2020, a medium term plan designed to foster growth and build a globally competitive economy through diversification of the economy, increased investment in infrastructure, digitalisation of the economy, and improvement in the ease of doing business in the country,” Ahmed said.

Secretary to the Government of the Federation, Mr Boss Mustapha, who was represented by the Permanent Secretary, Economic and Political Affairs Office, Mr Andrew Adejo, assured stockbrokers that the Federal Government would continue to improve on the security situation in Nigeria.

He noted that the role of stockbrokers in wealth creation and ensuring that the capital market remained a sustainable platform for raising long term capital could not be over emphasised.

President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe urged tiers of government to utilise the market to raise long term fund to finance the economy.

He noted that the capital market has been underutilised relative to its absorptive capacity.

“We obviously need to push for an annual average GDP growth rate of 10 per cent or more over the next 10-to-20-year period to achieve the potential inherent in our economy and to improve the standard of living of the people.

“That was the secret of China’s transformation from a developing country of Nigeria’s status to a developed one that is rivalling the USA in almost every facet of economic activity globally today,” Amolegbe said.

Chairman, Organising Committee of the Workshop, Alhaji Umaru Kwairanga said the rationale for the workshop theme was to sensitise the governments at all tiers to stage a come-back to the market to source medium and long term fund to build infrastructure, describing it as a win-win affair between for the governments and the market.

 

 

 

Finance and investment analysts at the weekend flayed the Central Bank of Nigeria (CBN)’s decision to freeze the bank accounts of some fintech companies as a desperate move that could hamper the long-term development of the economy.

This came as the Nigerian Exchange (NGX) Limited underscored the importance of fintechs in achieving an inclusive digital economy.

Market analysts at Cordros Securities said the freezing of the fintech accounts was “a desperate move to preserve the value of the naira” but it could further worsen the country\s economic perception.

“For us, this development could further worsen foreign investors’ perception of the country’s investment climate and may constrain private investment in the fintech space,” Cordros Securities stated.

The CBN had obtained a court order to freeze the account of five fintech companies on the basis of allegations that they were operating without asset management licenses and utilising foreign exchange (forex) sourced from the Nigerian forex market for purchasing foreign bonds and shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 1, 2015.

The affected companies included Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, CTL/Business Expenses and Trove Technologies Limited. Their accounts were last week frozen for 180 days pending the outcome of the apex bank’s investigation.

Speaking on the theme: “Roadmap to a Digital Nigeria: Harnessing Fintech, Cryptocurrencies and Artificial Intelligence to Create Stronger Financial Markets”, at the 2021 national workshop of the Chartered Institute of Stockbrokers (CIS), the NGX said the collaboration between fintech and the capital market would effectively create a digital economy as well as increase financial inclusion and cashless payments.

Divisional Head, Trading Business, Nigerian Exchange (NGX) Limited, Jude Chiemeka, explained that fintechs have a huge potential to transform the capital markets and effectively build a digital economy.

He added that rather than seeing fintechs as competitors, they are potential partners to incumbent capital market infrastructure providers like NGX.

Read Also: Fintech firm, Rocket revolutionises African market with new products

 

Citing the Pulse of FinTech H2 2020 report, Chiemeka said that the global investments by fintechs were $105 billion despite a significant drop compared to $165 billion recorded in 2019 while adding that Nigerian fintechs raised about $439 million in 2020.

According to him, fintechs are transforming the financial services industry by focusing on targeted products and services, automating and commoditising high margin process, strategic use of data and collaborating with incumbents.

Chiemeka, who represented the Chief Executive Officer of NGX, Mr Temi Popoola, noted that the NGX provides access to capital, trade execution, post trade services, data analytics and information services, operations and technology and added that NGX is not left out of the fintech adoption as it continues to adopt technology to improve market accessibility and transparency.

“As Africa’s largest economy and with a population of 200 million-40 per cent of which is financially excluded, Nigeria is classified as a developing fintech economy compared to its more mature global peers such as the UK, Singapore, Australia, Sweden and India.

“EY estimates that Nigerian fintech revenues will reach $543 million by 2022, driven by increasing smartphone penetration, unbanked populations and a focused regulatory drive to increase financial inclusion and cashless payments.

“In line with the evolution of fintech in other markets, fintech activity in Nigeria started in payments and moved into other areas. consumer lending-and, increasingly, asset management-are focal points for fintech activity,” Chiemeka said.

He reiterated that NGX will continue to set up its solutions and innovation hub to explore projects that leverage distributed ledgers, cryptocurrency and artificial intelligence to improve financial inclusion and market accessibility.

 

 

 

Nigeria’s largest producer of preforms and caps, Prima Corporation Limited (PCL) has launched the first tranche of its commercial paper issuance programme with a view to raising N5 billion in short-term debt capital.

PCL is issuing 180-day commercial papers under its N5 billion Series 1 Commercial Paper with discount rate and implied yield of 12.66 per cent and 13.50 per cent. The N5 billion commercial paper is the maiden issuance under the company’s N30 billion commercial paper issuance programme.

PCL will use the net proceeds of the issuance to fund short-term working capital requirements.

PCL is the leading manufacturer of preforms and caps in Nigeria with focus on the beverage industry. It supplies both local and international brands in Nigeria and other African countries including Ghana, Cameroon, Chad, Niger and Liberia.

The company has a short-term issuer rating of A- by DataPro which is supported by stable earnings, strong business profile and liquidity profile.

Incorporated in March 1974, PCL commenced operations in October 2004 with its principal activities as manufacturing and distribution of preforms and caps to the water and beverage manufacturers.

The funding date, which is the effective closing date for the application list for the commercial paper is Wednesday, August 25, 2021. Minimum subscription to the issuance is N5 million.

 

Polaris Bank is impacting Nigerian education sector with a significant funding boost through its bundled loan solution called ‘Polaris Education Loan’ as it sets aside a dedicated credit line to support private school owners.

The Polaris Education Loan offers both new and private primary, secondary, and tertiary institutions customers of the bank, access to loans of up to N100 million to meet their various funding needs.

This solution forms part of the lender’s effort to support Nigeria’s vital educational sector by ensuring that schools meet their goals and growth aspirations.

Speaking on the Polaris Education Loan, Group Head, Products and Market Development, Mrs. Adebimpe Ihekuna disclosed that the credit scheme is the bank’s forward-thinking safeguard to help schools mitigate any shortfall in their finances, especially as schools prepare to resume in the new academic year, starting in September 2021.

The Polaris Education Loan offers the promoters of private schools, credit facility to meet their various administrative needs: payment of salaries, finance rent, purchase of laboratory equipment, School buses, furniture, books for the library, school renovation and expansion. The credit scheme also allows for purchasing essential assets such as school buses and power generating sets, among others. It takes 24hrs to avail customers of the loan by the Bank.

To apply, existing and new customers should visit any Polaris Bank branch to complete the loan application process or send an email to smebusiness@polarisbanklimited.com   for assistance.

For additional information on Polaris Bank’s products and services, please get in touch with Polaris Bank’s Yes Centre on 0700-POLARIS (0700-767-2747) or via email at yescenter@polarisbanklimited.com

Polaris Bank is a future-determining bank committed to delivering industry-defining products and services across all sectors of the Nigerian economy.

Nigerian equities closed weekend with a marginal decline of 0.10 per cent in a week that saw major advanced and emerging global stock markets suffering huge losses amid heightened fears over the global economic outlook in the wake of resurgent COVID-19.

All global stock market indices tracked at the weekend closed negative, with the telltale reddishness of the bears dotting the charts from America to Europe, Asia, Middle East and Africa. Investors had no safe haven as anxieties over the increasing spread of the COVID-19 Delta variant stoked risk-aversion across advanced, frontier and emerging markets.

Nigerian equities closed with negative average return of -0.10 per cent, equivalent to net capital loss of N21 billion. In United States, all major indices retreated from recent gaining streak. The Dow Jones Industrial Average (DJIA) dropped by 1.7 per cent. The S & P also declined by 1.4 per cent. United Kingdom’s FTSE 100 Index posted negative return of -2.5 per cent. Japan’s Nikkei 225 Index depreciated by 3.4 per cent, indicative of the general Asian market performance. China’s benchmark index declined by 2.5 per cent. Europe’s broad index, STOXX Europe depreciated by 2.2 per cent. The MSCI EM Index- which tracks emerging markets, also declined by 3.8 per cent. However, the MSCI FM Index- which tracks frontier markets played the contrarian with average gain of 0.3 per cent.

Nigeria’s benchmark equities index- the All Share Index (ASI) of the Nigerian Exchange (NGX) Limited, closed weekend at 39,483.08 points from the week’s opening index of 39,522.34 points, representing a drop of 0.10 per cent. Aggregate market value of all quoted equities on the NGX also depreciated from the week’s opening value of N20.592 trillion to close weekend at N20.571 trillion, representing a decline of 0.10 per cent or N21 billion. The decline last week nudged the negative average year-to-date return to -1.96 per cent. However, the month-to-date return for August 2021 remained positive at 2.43 per cent.

Total turnover stood at 866.544 million shares worth N12.257 billion in 17,291 deals last week as against a total of 1.610 billion shares valued at N12.586 billion traded in 18,622 deals two weeks ago. The financial services sector led the activity chart with 445.324 million shares valued at N3.676 billion traded in 7,560 deals; thus contributing 51.39 per cent and 29.99 per cent to the total equity turnover volume and value respectively. The consumer goods sector followed with 119.649 million shares worth N4.969 billion in 3,424 deals while the information and communication technology sector placed thi4rd with a turnover of 87.132 million shares worth N1.938 billion in 924 deals.

Read Also: Strengthening livestock safety response

The trio of Honeywell Flour Mill Plc, Transnational Corporation of Nigeria Plc and Guaranty Trust Holding Company Plc were the most active, accounting for 203.753 million shares worth N 1.964 billion in 2,515 deals, contributing 23.51 per cent and 16.02 per cent to the total equity turnover volume and value respectively.

Also, a total of 1.001 million units of Exchange Traded Products valued at N16.762 million were traded in 14 deals compared with a total of 28,938 units valued at N949,074 traded in 13 deals penultimate week. At the bond market, a total of 30,877 bond units valued at N31.842 million were traded in 14 deals compared with a total of 139,062 units valued at N139.702 million traded in 19 deals two weeks ago.

There were 36 gainers against 33 losers last week compared with 29 gainers and 36 losers recorded in the previous week. Low-priced stocks dominated the top gainers’ chart. Honeywell Flour Mills recorded the highest gain of 46.34 per cent to close at N3. Pharma Deko followed with a gain of 44.54 per cent to close at N1.72 per cent while Courtville ranked third with 29.32 per cent to close at 31 kobo.

On the negative side, DN Meyer recorded the highest loss of 66.1 per cent to close at 39 kobo. SCOA Nigeria followed with a drop of 18.5 per cent to close at N1.59 while Consolidated Hallmark Insurance dropped by 13.2 per cent to close at 46 kobo.

Most analysts agreed that Nigerian equities will continue to trade within the mix of bargain-hunting and profit-taking, marked by intermittent losses and gains.

“We expect the bulls to regain dominance in the market given the moderation in the prices of bellwether stocks this week amid the declining yields in the fixed income market. However, we do not rule out the possibility of continued profit-taking activities. As a result, we think the choppy trading pattern that played out this week will persist in the week ahead,” Cordros Securities stated.

Afrinvest Securities stated that it expected market performance in the days ahead to be driven by a mix of profit-taking and bargain hunting activities.

Analysts advised investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.

Analysts at Financial Derivatives Company (FDC) however noted that positive corporate results may drive positive performance in the weeks ahead with the expected release of more corporate results, especially in the banking sector.

 

 

Leading investment and finance experts are scheduled to review strategies for the nation’s financial markets, with a view to ensuring sustainable national economic growth and development

At a national workshop with the theme,  “ Leveraging the financial markets to achieve double digit economic growth for Nigeria”, scheduled for Abuja this Thursday, top- level financial experts and government functionaries will brainstorm on identified gaps in government’s utilisation of the financial market and the way forward.

President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe, the organiser of the workshop, said the theme was timely in view of the various challenges facing the financial market and the need to reposition the market for optimal utilisation by sectors.

“As financial engineers and wealth creators, we advise the governments regularly, on the imperative of utilising the financial market to build infrastructure. This is the basis for this year’s workshop theme. Our market is largely untapped despite its potential to generate revenue for accelerated infrastructure development.

Read Also: Nigerian equities beat global stocks with N371b gain

 

“The workshop is specially packaged to enable top level decision makers in the government and private sector to come up with initiatives that will enhance overall development of the economy through investment opportunities in the financial market,” Amolegbe said.

According to him, over the years, successive governments at all tiers had taken advantage of the market to execute development projects, a model that should be renewed as one of the ways to minimise incessant government borrowing.

“It is not a gain saying that there is a correlation between the development of capital market and the economy.

“We have assembled seasoned market regulators and operators to do justice to the workshop theme and come up with a blueprint to enable the government chart a normal course for overall development of the economy,” Amolegbe said.

On the list of participants are the Secretary to the Federal Government, Mr Boss Mustapha, state governors, ministers; senators and chief executive officers of leading organisations in the financial market.