The Nation Newspaper

Category: Equities

  • Access Bank, Afreximbank sign trade finance pact

    Access Bank, Afreximbank sign trade finance pact

    Access Bank Plc has entered into an agreement with the African Export-Import Bank (Afreximbank) to support and finance key trade-enabling projects in Lagos State to the tune of $1.352 billion.

    The signing ceremony, which took place on the sidelines of the 2023 AfriCaribbean Trade and Investment Forum in Georgetown, Guyana, had in attendance key delegates including the Executive Governor of Lagos State, Babajide Sanwo-Olu; Group Chief Executive Officer of Access Bank PLC, Herbert Wigwe; Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank, and more.

    Commenting on the agreement, Herbert Wigwe, Group Chief Executive Officer of Access Holdings PLC, said, “This landmark agreement underscores our commitment to fostering economic growth in Lagos, with a broader view to increase the continent’s trade potential. Through our strategic collaboration with Afreximbank, we are poised to drive more inter-African and intra-African trade and investment, creating a brighter future for all.

    Read Also: Nigeria, EU sign over €900m finance agreements for developmental projects

    “In addition to supporting infrastructure, we will also be aiming to improve the levels of food sufficiency in Lagos as well as upscaling the volume of the State’s Internally Generated Revenue (IGR) in order to spur the growth in its GDP and achieve widescale economic resilience. Across the Access Group, we will continue to make deliberate effort towards championing sustainable initiatives that will change the global narrative about Africa and Africans,” Wigwe added.

    Some of the legacy projects highlighted in the collaboration include the Fourth Mainland Bridge, the second phase of the Blue Line Rail, the Omu Creek Project, Lekki-Epe International Airport, and the Lagos Food Systems and Logistics Hub in Epe.

    Speaking at the signing ceremony, Dr. Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank, said “Afreximbank’s partnership with Access Bank to support Lagos State in executing these critical projects is part of our strategy for the African Sub-Sovereign Governments Network. The Network serves as yet another ingenious strategic initiative aimed at firmly establishing an intra-continental trade investment development frontier as it is only through supporting and strengthening trade and investment initiatives at such deeper levels of citizen administration, that Africa be able to fully realise the potential value of its much vaunted 1.3 billion population as a captivating common market for goods and services under AfCFTA.”

  • Grants coming for Africa Online Safety Fund winners

    Grants coming for Africa Online Safety Fund winners

    The Africa Online Safety Fund (AOSF) has announced the winners of this year’s grants, among them six organisations operating in Nigeria: Access Drive Capacity Development Foundation, Epower, Lagos Mums Foundation, TechSocietal, Teens Can Code, and Zikoko Citizen.

    The selection of the 22 winning organisations from seven countries were announced by Impact Amplifier (IA) from its headquarters in Cape Town, South Africa.

    Nigeria had the highest number of awards. It was followed by five to South Africa and four to Ghana and Kenya. Cameroon, Somalia and Zimbabwe each had one winner.  Although the winning organisations reflect seven countries their internet safety interventions span across 15 African countries in total.

    Just over 350 applications were received in the 2023 cohort, from which a shortlist of 40 entries made it for the final selection process.  Each of the eventual winners will receive grants ranging from $10,000 to $50,000, made possible with the support of Google.org.

    Making the announcement, Impact Amplifier Director, Tanner Methvin said, “With over 500 million people having access to the internet in Africa, reflecting just under 40 per cent of the continent’s population, online safety issues are of critical concern.” 

    The AOSF, Methvin said, supports innovative approaches to addressing the complex safety issues the internet presents.  “The winning innovative solutions range from unique ways of combating mis and disinformation, establishing investigative teams to track cyber criminals, supporting journalists targeted with hate speech and bullying, integrating online safety training into school curriculums, and much more.”

    The AOSF offers grants to organisations throughout Africa that address one or more of the safety issues the internet facilitates. It is however focused on four primary countries: Kenya, Ghana, Nigeria, and South Africa in this funding round.

    Read Also: Nigeria, Kenya, others for $1m Africa Online Safety Fund

    There are three categories of funding: Transformative, Maturing and Catalytic. Transformative projects are intended to be larger in scale, reach multiple geographies and/ or potentially large numbers of beneficiaries, and be scalable as a solution. The Maturing projects are intended to test ideas at a larger scale, try new ideas within existing projects, and reach new audiences. The Catalytic projects are intended to be smaller, targeted, and potentially only locally or culturally specific.

    Transformative projects are a maximum grant of $50,000, Maturing projects up to $25,000, and Catalytic projects $10,000.

    In addition to announcing the winners of the AOSF awards, Impact Amplifier, again with the support from Google.org, is developing the first Africa focused online safety research, education and support platform. 

    Funding solutions to online safety since 2021, Impact Amplifier has realized that the only way to combat the scale of this challenge is by creating an ecosystem approach.  Part of developing this ecosystem involves centralising some of the key tools needed for support.  To this end it is developing an online platform, which aggregates all the research which has been done regarding online safety in Africa, making this key knowledge available to policy makers, civil society, academics, business and the general public.   Additionally, the platform will be hosting education materials to teach children and adults alike how to protect themselves online.  This content will include curriculum, testing materials, evaluation tools, and general awareness content, enabling anyone interested in learning how to protect themselves or others with easy access to all the content they need.  Finally, despite our best protection efforts, online violations occur.  Once someone has been the victim of an online crime or violation getting help is hard to navigate.  To address this, the platform will centralise all the ways that people can seek support no matter where they are in Africa.     This new platform will be launched in February 2024.

  • IMF predicts African economies’ rebound by 2024

    IMF predicts African economies’ rebound by 2024

    African economies will recover and record significant growth in 2024 despite several countries experiencing increased political instability and deteriorating security, Managing Director , International Monetary Fund (IMF), Kristalina Georgieva, has said.

    Speaking at the African caucus meeting held yesterday in US, she said: “We had very productive discussions on Africa’s economic prospects. This year has been a difficult year for Africa. The region is still emerging from the COVID-19 pandemic and African countries have been hit by high borrowing costs and a cost-of-living crisis.”

    Georgieva explained that against this backdrop, the IMF agreed that policy priorities to address these challenges should aim at solidifying the ongoing economic recovery, rebuilding buffers, and investing in the future to improve living standards. In countries with elevated and rising inflation, policy settings should be sufficiently tight to bring it down.

    She said that the exchange rate, where appropriate, should be allowed to play its shock absorber role while mitigating second-round effects of depreciation.

    Read Also: IMF optimistic about Africa’s economic growth next year

    “Fiscal policy should continue consolidating public finances and reducing debt sustainability risks while providing targeted social assistance to the most vulnerable. In resource intensive countries, investing in education, managing better resource-based wealth, accelerating diversification will help improve living standards,” she said.

    The IMF also  underscored the need to scale up concessional financing, including to support climate change adaptation and mitigation.

    “Large financing needs from infrastructure and social protection gaps are being exacerbated by climate change. While the African continent had a minor contribution to the stocks of greenhouse gases in the atmosphere, it is already bearing and is deemed to bear the largest costs from climate change. At the same time, fiscal space remains constrained as buffers have been depleted during the crisis. Private sector participation will also be essential to fill the funding gaps,” she said.

  • BUA Foods grows profit by54% to N105.6b in Q3

    BUA Foods grows profit by54% to N105.6b in Q3

    BUA Foods recorded double-digit growths across key performance indicators in the third quarter with net profit rising by 54 per cent to N 105.6 billion in the nine-month period.

    Key extracts of the interim report and accounts of BUA Foods for the nine-month period ended September 30, 2023 showed that turnover rose by 81 per cent from N289.8 billion in third quarter 2022 to N524.4 billion in third quarter 2023.

    The top-line performance was driven by growths across the key business segments. Turnover in the sugar business rose by 74.2 per cent from N180.9 billion to N315.2 billion. Flour business grew by 126 per cent to N149.9 billion as against N66.2 billion. Pasta business recorded a turnover of N58.3 billion, 37 per cent above N42.7 billion posted in comparable period of 2022. The group’s newly launched rice business contributed N995 million during the period.

    Gross profit increased by 95.1 per cent to N183.8 billion in 2023 as against N94.2 billion in 2022. Gross profit margin had appreciated by 250 basis points from 32.5 per cent to 35 per cent. Operating profit grew by 94.5 per cent from N80.7 billion to N156.9 billion.

    Operating profit margin thus improved by 210 basis points from 27.8 per cent to 29.9 per cent. Profit before tax jumped by 50 per cent to N111.4 billion in third quarter 2023 as against N74.2 billion in third quarter 2022. Pre-tax profit margin however dropped from 25.6 per cent to 21.2 per cent. After taxes, net profit rose by 53.6 per cent to N105.6 billion compared with N68.8 billion in corresponding period of 2022. With this, earning per share grew by 53.6 per cent to N5.87 in 2023 from N3.82 in the corresponding period of 2022.

    Read Also: BUA Foods acquires vessels for sugar export

    The company stated that there were significant growths across the business divisions as higher volume sold impacted the overall performance, noting that key drivers included slight price adjustments to reflect high input costs, volume growth and gradual commissioning of its expansion projects.

    Managing Director, BUA Foods Plc, Engr. Ayodele Abioye, said the results underscored the strength of the group’s business strategy, dedication of its team and support of strategic partners.

    He pointed out that the results were achieved despite the complexities presented by rising inflation, high interest rate resulting in pressure on consumer income, and naira depreciation which led to foreign exchange losses.

    “Clearly, BUA Foods Plc has not only weathered the storm but has thrived. We have strategically navigated challenges by embracing change, doubling down on efficiency, and carefully optimizing costs without conceding our commitment to quality and service. Moreover, our focused investments in expansion projects is on course, providing a solid foundation for further growth and competitiveness.

    “We remain excited about the prospects that lie ahead despite the headwinds, and confident in our business resilience for a sustained positive momentum,” Abioye said.

  • Haldane McCall to list shares on stock market

    Haldane McCall to list shares on stock market

    Haldane McCall Plc plans to list its shares on the main board of the Nigerian Exchange (NGX), opening up the ownership of the real estate and hospitality company to other investors.

    Haldane plans to list by way of introduction in the first quarter of 2024.

    As a prelude to the listing, Haldane McCall has commenced preliminary documentations at Securities and Exchange Commission (SEC) and NGX through its appointed parties to the listing.

    Att the company’s investors forum in Lagos, Group Managing Director, Haldane McCall Plc, Mr Edward Akinlade said the company had always operated on the strength of strategic growth, stellar returns, diversified portfolio and proven expertise.

    According to him, the company has a strong board and management team that comprises topnotch professionals in diverse professional backgrounds.

    “We have gone far in our plan to ensure that our company is listed on NGX in the first quarter of 2024. We shall be listed by introduction since we have complied with all the listing requirements of NGX. The listing will enhance the company’s perpetuity and sustainability of returns and avail us more financing options in the future . We regard our shareholders as partners. We have generous dividend policy. Our company has capacity to collaborate with the government to bridge housing deficits in Nigeria.

    Read Also: Stock market transactions soar to N2.42tr

    “The company intends to expand by procuring at least one additional hotel annually over the course of the next decade at choice locations such as Lagos, Abuja, Port Harcourt, Ibadan etc. In the medium term, the Haldane McCall Group seeks to further develop 10 budget hotels. The company intends to intensify its drive for sourcing and identifying viable investment opportunities in the African emerging markets. The strategy among others is to buy existing hotels, invest, remodel and finally rebrand for optimality,” Akinlade said.

    Chairman, Haldane McCall Plc, Mr George Oguntade, SAN, explained that the time was ripe for listing of Haldane McCall on NGX to enable indigenous and foreign investors benefit from its superior return on investment. Oguntade urged investors to take advantage of the company’s unique characteristics .

    One of the company’s advisers and Chief Executive Officer , Professional Stockbrokers, Mr Dapo Adekoje noted that with its trajectory of good performance and policy of creating value for shareholders, the company’s shares would be on high demand after the listing.

    The investors forum attracted many high net-worth individuals and institutional investors and the parties to the proposed listing made presentations.

  • Verve, Sterling Bank partner on credit cards

    Verve, Sterling Bank partner on credit cards

    Verve has collaborated with Sterling Bank to launch its first credit cards. 

    The naira-denominated cards are available in two categories – Ultra Bronze and Ultra Ruby.

    Other features of the card include repayment plans and contactless payment, a 45-day interest-free period, and the ability to use the cards across cities nationwide and at various payment terminals and locations. They are valid three years.

    Managing Director, Interswitch Paytoken, Verve, Vincent Ogbunude, said: “The credit system in Nigeria is a complex one, and what we seek to achieve with this partnership is to make good on our promise to deliver Verve’s signature good life experience by simplifying access to credit for consumers’ everyday purchases.

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    “We are thrilled to have collaborated with Sterling Bank on this journey, fuelled by our aligned goals of forming strategic partnerships, like this one, to elevate the experience of the average Nigerian in their interactions with the macro financial economy by improving their purchasing power.

    Chief Product Officer, Sterling, Mustapha Otaru said, “The collaboration with Verve perfectly aligns with Sterling’s mission to create solutions that enhance the delivery of value to our esteemed customers. With Specta Ultra Card issued on Verve, we have simplified access to credit for customers with different income levels and spending needs. Thus, it reaffirms our commitment to delivering innovative financial solutions and access for everyone.”

  • Equities rally N64b gains in tight trades

    Equities rally N64b gains in tight trades

    Nigerian equities rode on the back of gains by large and mid-cap stocks to close yesterday with a net capital gain of N64 billion.

    Benchmark indices at the Nigerian Exchange (NGX) yesterday indicated average gain of 0.17 per cent, equivalent to net capital gain of N64 billion.

    The All Share Index (ASI)- the common value-based index that tracks all share prices at the Exchange, rose by 115.62 basis points to close at 67,100.49 points as against its opening index of 66,984.87 points.

    Aggregate market value of all quoted equities improved from opening value of N36.801 trillion to close at N36.865 trillion.

    With 18 gainers to 17 losers, the positive overall market situation was driven largely by gains recorded by large and mid-cap stocks such as BUA Cement, Union Bank of Nigeria (UBN), Transnational Corporation (Transcorp) and Flour Mills of Nigeria.

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    Thomas Wyatt Nigeria recorded the highest price gain of 9.81 per cent to close at N2.35 per share. DAAR Communications followed with a gain of 9.52 per cent to close at 23 kobo. Cornerstone Insurance up by 6.45 per cent to close at N1.65. Transcorp appreciated by 5.41 per cent to close at N6.43 while Union Bank of Nigeria rose by 5.30 per cent to close at N6.95, per share.

    On the negative side, Omatek Ventures led the losers’ chart by 8.33 per cent to close at 44 kobo. Oando followed with a decline of 8.08 per cent to close at N9.10. Africa Prudential lost 7.80 per cent to close at N6.50. Caverton Offshore Support Group dipped by 6.92 per cent to close at N1.48 while Consolidated Hallmark Insurance depreciated by 6.25 per cent to close at N1.05 per share.

    The momentum of activities also improved with turnover rising by 59.40 per cent to 410.321 million shares valued at N4.457 billion in 5,637 deals. Neimeth International Pharmaceuticals topped the activity chart with 163.201 million shares valued at N259.494 million. Access Holdings followed with 38.974 million shares worth N611.819 million. Zenith Bank traded 32.273 million shares valued at N1.019 billion. Fidelity Bank traded 23.523 million shares valued at N194.178 million while United Bank for Africa (UBA) recorded 19.822 million shares worth N341.185 million.

    Analysts at Afrinvest Securities said they anticipated “mild gains driven by improved investor sentiment” in the next trading session.

  • US pension funds, others eye Nigerian capital market

    US pension funds, others eye Nigerian capital market

    United States’ pension funds and other institutional investors have expressed interest in increasing investments in the Nigerian capital market.

    A delegation of major United States’ investors under the Institutional Investor Network yesterday was at the Nigerian Exchange (NGX) to further talks on prospects for investments and areas of collaboration.

    The delegation included United States Agency for International Development (USAID), Prosper Africa and Power Africa. The US delegation was honoured with a ceremonial beating of the closing gong for the stock market yesterday at NGX.

    Senior Investment Advisor, Prosper Africa, Cameron Khowsroshahi, who led the United States (U.S.) delegation to Nigeria, said US institutional investors are opened to working with Nigerian institutional investors including pension funds to explore more avenues to invest in the Nigerian capital market.

    He noted that in the US, pension funds, some of whom were represented at the engagement, were allowed by regulation to invest 60 to 75 per cent of their capital into equities and funds targeting equities.

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    He urged Nigerian stakeholders to work with the pension regulator to allow pension funds inject more of their liquidity into the Nigerian equities market.

    He stressed the need for a new chapter in Africa and the U.S. economic relationship, adding that private capital from both sides play a pivotal role in achieving sustainable solutions for Nigeria and Africa.

    Chairman, Nigerian Exchange Group (NGX Group), Alhaji Umaru Kwairanga called for a deeper collaboration between the US and Nigeria.

    He highlighted areas in which NGX Group has been engaging the government to further develop the capital market to include removal of capital controls; legislation to enhance attractiveness of listings, pension reforms, policymaking to facilitate dollar-denominated market transactions, and the establishment of a private market.

    According to him, significant opportunities for mutual economic expansion abound between the United States and Nigeria and the NGX Group has been positioned to facilitate more investment inflows.

    Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola, outlined innovative activities of the Exchange aimed at catalysing capital formation by both foreign and domestic investors.

    “We are working hand-in-hand with government to create an attractive environment for listings and also on product innovation that can creatively channel more funds into the market,” Popoola said.

    He added that NGX’s technology innovations such as the technology board, which is aimed at encouraging listing of tech startups, and digital market access will spur the younger generation of Nigerians to invest in the market.

    Chief Executive Officer, Chapel Hill Denham, Mr Bolaji Balogun, expressed optimism that the Nigerian market will emulate the US market as regards lesser risk aversion to investing pensions in equities.

  • PZ Cussons targets October ending for release of delayed results

    PZ Cussons targets October ending for release of delayed results

    PZ Cussons Nigeria Plc is yet to complete its corporate audit process for the immediate past business year.

    In a regulatory filing yesterday, the board of the company stated that the audit process for the year ended May 31, 2023 is still ongoing and expected to be completed in time for submission by the end of this month.

    Extant rules at the stock market require quoted companies to submit their full-year audited results and accounts not later than 90 days after the end of the year. Thus August 29, 2023 was the deadline for the submission of PZ Cussons’ audited results.

    “We affirm that we will release the audited financial statements for the year ended 31 May 2023 to the market on or before the end of October 2023,” PZ Cussons Nigeria stated.

    The delayed audit came as PZ Cussons (Holdings) Limited, the foreign majority core investor in PZ Cussons Nigeria Plc, bids to acquire the entire shareholdings of Nigerian minority shareholders in the Nigerian subsidiary.

    PZ Cussons is offering to acquire shares held by other shareholders of PZ Cussons Nigeria Plc at a price of N21 per share.

    Read Also; Fed Govt gives N25,000 to poor pensioners

    PZ Cussons has already informed the board of directors of PZ Cussons Nigeria of its intention to acquire the shares held by all the other shareholders, subject to prevailing market conditions.

    The proposal is however still subject to the consideration and approval of the board of PZ Cussons Nigeria, the company’s shareholders and requisite regulatory authorities.

    The acquisition of minority shareholdings will turn PZ Cussons Nigeria into a private limited liability subsidiary of PZ Cussons (Holdings), with delisting of its shares at the NGX.

    In its proposal, PZ Cussons Group explained that the transaction is necessary in order to enable it to significantly simplify and strengthen operations in Nigeria, thus creating the foundations for the Nigerian business to deliver against its strategy.

    The core investor stated that it seeks to build a more agile and innovative business, noting that it has been present in Nigeria since 1899 and expects Nigeria to remain an important market for the group for many years to come.

    The proposed transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 and other applicable rules and regulations.

    This will require the company to convene a general meeting of its shareholders by an order by the Federal High Court, otherwise known as court-ordered-meeting.

    The company stated that the date, time, venue and agenda for the court-ordered-meeting will be communicated to shareholders upon receipt of the requisite approvals from the board, Securities and Exchange Commission (SEC) and the Federal High Court.

    “The terms and conditions of the proposed transaction will be provided in the scheme document which will be dispatched to all shareholders prior to the court ordered meeting. Further developments will be communicated to shareholders in due course,” the company stated.

    The board of PZ Cussons Nigeria urged shareholders and members of the public to exercise caution in dealing in the company’s shares until further information is provided.

  • NGX lists N200b Nigeria’s first naira denominated infrastructure fund

    NGX lists N200b Nigeria’s first naira denominated infrastructure fund

    Nigeria Exchange (NGX) yesterday listed the N200 billion Nigeria Infrastructure Debt Fund (NIBF), paving the way for existing and new investors to trade on Nigeria’s first local currency-denominated infrastructure investment trust fund.

    NIDF, managed by Chapel Hill Denham, aims at providing investors regular and stable income by making debt investments primarily in infrastructure projects in Nigeria.

    The fund, backed by major institutional investors including the Nigeria Sovereign Investment Authority (NSIA), has provided long-term financing in naira for private infrastructure projects. Since inception, it has returned 155 per cent.

    NIDF’s 853.818 million units were listed on the main board of NGX at N8.39 per share. NIDF will remit quarterly dividends to investors by paying out profits from investing in industries like power, transportation, healthcare and education.

    The listing yesterday was commemorated with a closing gong ceremony where the management of the NIDF also provided facts about the fund.

    Chief Executive Officer, Chapel Hill Denham, Mr Bolaji Balogun said the listing of the fund is a great move for Nigeria’s economy.

    Read Also; Fed Govt gives N25,000 to poor pensioners

    “This is the first time an infrastructure debt fund is listed on the Exchange. NIDF has been existing since 2017 and it has distributed successively for 24 quarters. We have increased the diversity of the areas we invest into – transportation, power, education, telecoms, social infrastructure,” Balogun said.

    He said the country needs to invest consistently to grow in that area of infrastructure.

    He also stressed the importance of infrastructure as an asset class.

    Chief Executive Officer, Nigeria Infrastructure Debt Fund (NIBF), Anshul Rai, outlined the achievements of the fund since its inception in 2017.

    “Through the good work of the team, we have been fortunate not to have non-performing loans. We have had situations where the price of the funds have been very strong with very significant returns,” Rai said.

    Chairman, Nigeria Infrastructure Debt Fund (NIBF), Mr Phill Southwell lauded the listing, adding that by listing on the exchange, NIDF hopes to crowd in retail investors.

    He said the fund’s investment strategy has the sustainability principles of environment, sustainability and governance (ESG) integrated into it.

    Chief Executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola said Chapel Hill Denham has been consistent with immense value addition to the Exchange and a key contributor to capital market growth in the last five years.

    “One big innovation in the last three years was the MTN public offer. It included a complete end-to-end digital application process, which could not have been possible without Chapel Hill. We have been trying to showcase Nigeria as an investment destination, and Chapel Hill has been a strong supporter of that system,” Popoola said.

    He added that the capital market is increasingly becoming a vehicle for solving key governance problems, especially in the aspect of raising debt funding.

    He noted that the NIDF is an elegant solution that exist not only in Nigeria but in foreign markets.

    “The retail investor landscape will find this very attractive. It sells itself,” Popoola said.

    He said the Exchange remains committed to infrastructural development and wealth creation for the country.

    He noted that the listing of NIDF aligns with NGX’s mission to support financial market instruments that drive sustainable wealth creation and infrastructural advancement in Nigeria.

    According to him, NGX will further enhance the visibility of NIDF, giving investors access to more investment options.