Category: Equities

Greenwich Merchant Bank Limited has launched application to raise N10 billion in short-term debt capital as the wholesale banker seeks to deepen its balance sheet.

Greenwich Merchant Bank is Series 1 and Series 2 Commercial Paper (CP) under its N100 billion CP issuance programme. Under the Series 1, the bank is offering 179-day CPs with implied and discount rates of 13.0000 per cent and 12.2209 per cent respectively.

Under Series 2, the bank is offering 270-day CPs with implied and discount yields of 14.0000 per cent and 12.6862 per cent respectively.

Minimum subscription to the offer is N5 million and thereafter in multiples of N1,000. Application list for the offer is scheduled to close on Thursday, March 09, 2023.

Greenwich Merchant Bank plans to use net proceeds from the offer as short-term working capital to bolster its operations. The bank is rated “Bbb” by Agusto & Co and “BBB” by GCR.

Owned by reputable corporate and private investors, Greenwich Merchant Bank was incorporated in February 1992 as Greenwich Trust Limited. It commenced operations in June 1994, providing investment banking and debt and equity market advisory services. It transitioned to a merchant bank in September 2020, following the receipt of its merchant banking license from the Central Bank of Nigeria.

The bank stated that its transition to a merchant bank was propelled by the need to provide direct funding solutions for its clientele operating across the various sectors of the economy.

Nigerian equities market’s capitalisation crossed the N30 trillion mark yesterday as the nation snaked through announcement of the Saturday’s general elections.

 With more than three gainers for every loser, investors remained upbeat as the results of the weekend’s presidential and National Assembly’s elections trickled in.

Aggregate market value of all quoted equities at the Nigerian Exchange (NGX) rallied by N206 billion to cross the N30 trillion mark.

Benchmark indices at the market indicated average return of 0.69 per cent yesterday, pushing the average return so far this year to 7.96 per cent.

The All Share Index (ASI)- the value-based common index that tracks all share prices at the Exchange, rose from its opening index of N54,949.21 points to close at 55,328.42 points.

Aggregate market value of all quoted equities also rose from its opening value of N29.934 trillion to close at N30.140 trillion.

The overall market performance was driven by widespread positive sentiments, especially within the mid and large-cap stocks such as Geregu Power, Conoil, Oando, BUA Foods, Stanbic IBTC Holdings and MRS Oil Nigeria.

There were 28 gainers against nine losers. C & I Leasing, Oando and Stanbic IBTC Holdings recorded the highest allowable price change of 10 per cent each to close higher at N3.63, N4.40 and N37.95 respectively. Conoil trailed with a gain of 9.98 per cent to close at N46.85 while MRS Oil Nigeria  rose by 9.66 per cent to close at N33.50 per share.

On the negative side, FTN Cocoa processors led the losers’ chart by 6.90 per cent to close at 27 kobo. UACN Property Development Company (UPDC) followed with a decline of 4.0 per cent to close at 96 kobo. Japaul Gold & Ventures declined by 3.45 per cent to close at 28 kobo, per share. Transnational Corporation (Transcorp) lost 3.08 per cent to close at N1.26 while Mutual Benefits Assurance dipped by 3.03 per cent to close at 32 kobo per share.

The total volume traded grew by 25.77 per cent to 149.781 million shares worth N1.542 billion in 3,186 deals. Transactions in the shares of Oando topped the activity chart with 14.287 million shares valued at N62.640 million. Trancorp followed with 11.716 million shares worth N14.734 million. Fidelity Bank traded 10.734 million shares valued at N53.748 million. Chams Holding Company traded 10.293 million shares valued at N2.859 million while United Bank of Africa (UBA) transacted 9.110 million shares worth N77.143 million.

Market analysts at United Capital said they expected the equities market to remain bullish despite post-election uncertainties.

“We foresee opportunities for the buy-side to increase holdings in the near-term on fundamentally sound stocks with improved valuation and dividend performance. Nonetheless, we still expect profit-booking activity for overbought stocks,” United Capital stated.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) is fine-tuning a framework that will allow pension funds to invest in the commodities market.

SEC and other stakeholders such as National Pensions Commissions (Pencom) and Lagos Commodities and Futures Exchange (LCFE) are collaborating on the structured investment of pension funds in the commodities market.

Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, who hosted the management of Pencom and LCFE in Abuja, said SEC was passionate about the commodities sector as it has enormous benefits for the economy of the nation.

According to him, one of the key pillars of the Capital market Master Plan is the development of the commodities ecosystem which gives the nation the opportunity to diversify both the capital market and the economy and also create more products.

“We have recorded a lot of successes in the sector so far and we see a lot of progress in the development of the sector. We are currently working with the Standards Organisation of Nigeria to develop standards that would make these our commodities acceptable in the international market. This would further boost our foreign exchange earnings and create wealth for our people,” Yuguda, who was represented by the Executive Commissioner, Corporate Services, SEC, Mr. Ibrahim Boyi, said.

He said the SEC is seeking collaboration with PenCom to ensure economic development adding that the sector has huge potentials if optimally developed.

“We have witnessed major achievements by the LFCE and we are happy to see them progress. We are committed to creating the rules that will ensure investor protection. It is a strategic focus for us to deliver one of our key mandates which is market development that will lead to economic development. Our focus remains market integrity, market fairness and investor protection.

Speaking earlier, Managing Director of LFCE, Mr. Akin Akeredolu-Ale said the commodities exchanges are interested in exploring avenues for investing pension funds in the capital market.

He expressed his joy that the SEC is spearheading the ISB to further boost the utilisation of pensions funds in the market adding that if pension funds are not reflated, inflation would keep affecting it.

“The primary part of our economic raw materials in crude oil, if you don’t capitalise the primary sector, the manufacturing sector will suffer, same as the service sector. SEC has made provisions for the PFAs to invest in the commodities sector and this is expected to catalyse our economy and spur growth” he said.

Akeredolu-Ale reassured that the reflation of the assets under management is going to benefit people that have their assets as globally pension assets are used to stimulate economies adding that the nation’s economy needs to be activated to create opportunities for pension assets to participate in the exchanges.

He therefore urged Pencom to look into its rules and encourage PFAs to develop and interest in investing in commodity assets on the commodities exchanges like LFCE.

In her remarks, Managing Director of Lotus Capital, Mrs. Hajara Adeola said the commodity space is very central to the progress and development of Nigeria’s economy and it is important the entire financial system participates as it is developing globally.

“The capital market is creating instruments, creating avenues for investments to grow the market and the economy. It is important we put these infrastructures in place to make it profitable for our nation” she said.

Responding, Commissioner Technical of Pencom, Mr. AnyimNyerere said the Pension laws are not static but dynamic adding that the Commission expects a comprehensive request to enable it expedite actions on the matter.

He expressed the desire of Pencom to work with relevant agencies to boost the economy and assured the SEC that Pencom will work within available laws to support the commodities trading ecosystem.

•Equities’ capitalisation nears N30tr

The Nigerian stock market appeared to have discounted any major political risk arising from the Saturday’s national elections as investors increased buy orders for quoted shares.

With nearly three gainers for every loser, total market capitalisation of the Nigerian equities market yesterday rose by N180 billion to N29.769 trillion.

Benchmark indices at the Nigerian Exchange (NGX) indicated average return of 0.61 per cent, which underscored that increase in market capitalisation was due to price appreciation.

The All Share Index (ASI)- the value-based common index that tracks all share prices at the NGX, rose from its opening index of 54,315.53 points to close at 54,646.38 points.

Aggregate market value of all quoted equities also rose from its opening value of N29.589 trillion to close at N29.769 trillion.

There were 28 gainers against 10 losers. MRS Oil Nigeria recorded the highest price gain of 9.88 per cent to close at N27.80 per share. McNichols followed with a gain 9.09 per cent to close at 60 kobo. BUA Foods rose by 8.87 per cent to close at N81. Cornerstone Insurance rose by 8.33 per cent to close at 65 kobo while Transcorp Hotels appreciated by 7.44 per cent to close at N6.50 per share.

On the negative side, The Initiates Plc (TIP) led the losers’ chart with 9.09 per cent to close at 40 kobo. Neimeth International Pharmaceuticals followed with a loss of 6.45 per cent to close at N1.45. Consolidated Hallmark Insurance dropped by 6.15 to close at 61 kobo, per share. Veritas Kapital Assurance declined by 4.76 per cent to close at 20 kobo while AIICO Insurance dropped by 1.67 per cent to close at 59 kobo per share.

Total turnover stood at 124.561 million shares worth N1.807 billion in 2,600 deals. United Bank for Africa (UBA) topped the activity chart with 32.420 million shares valued at N272.124 million. Courteville Business Solutions followed with 15.976 million shares worth N7.639 million. Zenith Bank traded 11.526 million shares valued at N292.131 million. Guaranty Trust Holding Company (GTCO) recorded 8.62 million shares valued at N217.946 million while Chams Holdings recorded 6.723 million shares worth N1.742 million.

“We anticipate a mild gain in tomorrow (today)’s trading session, driven by improved sentiment,” analysts at Afrinvest Securities stated.

Analysts at Arthur Steven Asset Management said they expected mixed trading in the next trading session ahead of the presidential election.

“Investors should pay close attention to global indicators as well as trends under the current global situation. We would like to reiterate that investors should go for stocks with good fundamentals with regards to their portfolios,” Arthur Steven Asset Management stated.

The Bank of Industry (BoI) and Emerging Africa Group have reiterated their commitments to enhancing access to finance to Nigerians through increased collaborations between the two companies.

At a business relationship meeting in Lagos, directors of the companies agreed that they shared the common vision of helping to unleash the potential of Nigerian economy through provision of amenable finance.

The meeting identified various areas of increased collaboration to include micro-financing, trusts, financial technology and infrastructure financing among others.

Group Chairman, Emerging Africa Group, Chief Nike Akande, said the business visit to BoI was in furtherance of the group’s goal to strengthen its footprints as an Environmental, Social and Governance (ESG)-led and impact focused investments and financial services group.

Akande, a former Minister of Industry, commended the growth of BoI over the years noting that as a former non-executive director of BoI, then known as Nigerian Industrial Development Bank, and as former supervising minister, she has seen the bank growing over the years with commendable milestones.

She commended the bank’s leadership on its multiple accomplishments including raising over $5 billion of additional capital, deploying N1.36 trillion to over 4.3 million enterprises in the last seven years and creating 9.6 million jobs.

According to her, several awards won by BoI such as Best Development Bank, Africa 2022 Award, Most Sustainable Bank 2022, Nigeria, Best SME Partner Bank of the Year and CEO of the Year awards were pointers to the success of the bank.

Akande pointed out that Emerging Africa Group has since inception in 2018 have helped to raise more than $1.0 billion for its clients and grow its business to over $90 million in total assets.

Executive Vice-Chair, Emerging Africa Group, Toyin  Sanni said the group was ready for a stronger partnership with BoI.

She commended the Olukayode Pitan-led management for its commitments to excellence and support for Nigerian businesses.

She explained that Emerging Africa Group was established by institutional and private domestic and international investors with the aim of addressing Africa’s huge financial access gap and advancing Africa’s Sustainable Development Goals (SDGs).

According to her, the group provides financing and investing solutions to public and private sector projects, through its various subsidiaries and has since inception, helped to raise over $ billion for the governments and companies.

“Our business has evolved from pure investment banking at commencement into an Environmental, Social and Governance focused Investments Group with equity and debt interests across investment banking, financial technology, microfinance banking, capacity building and energy and road infrastructure.

“Our company services ranges from investment and financing transactions leveraging strong and stable partnerships with domestic and international partners such as local and regional public and private sector issuers, sovereign and sub-national governments, public and private companies, development finance institutions, local, regional and international banks and high net-worth individuals. covering investment services to HNIs, corporates and governments,” Sanni said.

Managing Director, Bank of Industry (BoI), Mr. Olukayode Pitan, said the bank was willing to partner with well-managed institutions like Emerging Africa Group to foster national economic development.

He said BoI has remained the leading development-finance institution in Nigeria, providing supports across the various sectors of the economy.

Emerging Africa Group’s delegation included Chairman, Emerging Africa Trustees Limited, Mallam Mohammed Bintube, who was a former board member of BoI; Director, EACL, Dr. Joe Mekiliuwa; Director, Treasures MFB, Dr. Tunde Ayeye; Managing Director, Emerging Africa Asset Management, Adaku Ijara; Managing Director, Fundall Technology Solutions, Abimbola Shopeju; Managing Director, Emerging Africa Trustees Limited, Felicia Shonubi and Executive Director, Emerging Africa Capacity Building, Funmbi Akinluyi.

The BoI team included its Executive Directors, Simon Aranonu, Usen Effiong; Chief Risk Officer, Dr. Ezekiel Oseni, Divisional Head, Corporate Finance, Leonard Kange; Ayo Bajomo, Divisional Head, Treasury and Financial Institutions and Funsho Odewoye, Technical Adviser to the Managing Director.

The development of an effective securities lending in the Nigerian capital market will boost the performance of the market and enhance its global competitiveness.

Chairman, Fidelity Bank Plc, Mr. Mustafa Chike-Obi said the development of securities lending will complement recent achievements and regulations in the Nigerian capital market to further unlock the potential of the market.

According to him, securities lending will increase the volume of transactions in the market and create hedging opportunities and value propositions.

“Until we do that, we are going to be a stone-age capital market. This is not for just equities but debt securities as well,” Chike-Obi said.

Chike-Obi spoke when he was invested as a Honourary Fellow of the Chartered Institute of Stockbrokers (CIS).

He assured that he would work with CIS to initiate moves for the effective take off of securities lending in the Nigerian capital market.

Chike-Obi’s plan is to enhance product option over margin lending that was in vogue in the Nigerian capital market until it was suspended due to its controversial deployment by some market operators at a point.

 Securities lending involves the owner of shares or bonds transferring them temporarily to a borrower. Subsequently, the borrower transfers other shares, bonds or cash to the lender as collateral and pays a borrowing fee. Securities lending can be used to increase fund returns to investors on incremental basis.

In his acceptance speech during the investiture ceremony in Lagos, Chike-Obi appreciated the Board of Fellows and council members of the institute for the great honour, noting that he had always regarded himself as a stockbroker.

Chike-Obi, pioneer chief executive officer of Asset Management Corporation of Nigeria (AMCON) explained that when he came into AMCON, the biggest problem was debt in the financial market and he realised that he needed to reach a solution very early.

 He expressed his readiness to work with the institute to reopen the processes that will make securities lending a product in the capital market.

 President, Chartered Institute of Stockbrokers (CIS), Mr Oluwole  Adeosun, extolled the virtues of Chike-Obi as a thoroughbred professional, noting his continuous support to the growth and development of the economy.

“The Governing Council of the Chartered Institute of Stockbrokers, in its wisdom a few years ago, decided to admit into our membership community, persons who have distinguished themselves as thoroughbred professionals of the calibre deserving of being a stockbroker.

“As a result of this council resolution, 10 eminent Nigerians have been admitted as Honorary Fellows of the Chartered Institute of Stockbrokers, out of which seven have been invested. Today, we have gathered here to celebrate yet another true icon of the Nigerian corporate community who is being admitted into the CIS family.

 “Mustafa Chike-Obi has the perfect foundation to be a success in the capital market. He graduated First Class Bachelor’s Degree in Mathematics, from the University of Lagos. He is also a graduate of the prestigious Stanford University Graduate School of Business. He was the inaugural Chief Executive Officer of the Asset Management Corporation of Nigeria (“AMCON”) where he served between 2010 -2015.

“As we all know, AMCON was established in 2010 to efficiently resolve the non-performing loan assets of banks in Nigeria. It is on record that, during his 5-year tenure in AMCON, Mustafa Chike-Obi performed outstandingly and led AMCON to meet its mandates to a significant extent. It is reputed that Mustafa Chike-Obi created the Treasury Department concept in Nigerian banking and headed the first such department in Nigeria at Chase Merchant Bank, between 1980 and 1982,” Adeosun said.

The Nigerian Exchange (NGX) yesterday reiterated its commitment to the development of Islamic finance as the Exchange admitted TajBank Limited’s N10 billion Sukuk Mudarabah for trading on its platform.

Speaking during the commemorative closing gong to mark the listing, Divisional Head, Capital Markets, Nigerian Exchange (NGX), Mr Jude Chiemeka said the Exchange remains committed to diversifying the capital market by providing broad portfolio of securities for various categories of investors.

He said NGX would continue to support companies and governments by providing a platform of choice for capital raising and linking them with a diverse pool of investors.

“The Exchange is also committed to the development of Islamic financing in the Nigerian capital market and continues to implement initiatives to deepen its offerings,” Chiemeka said.

He commended the efforts of TajBank’s leadership and the parties to the issue: Greenwich Merchant Bank, Lead Issuing House; 117 Capital & Buraq Capital, Joint Sharia Advisers; and United Capital, Brokers, on the transaction.

TajBank’s N10 billion 15 per cent Series 1 Sukuk Mudarabah bond has both features of equity and debt. The N10 billion Sukuk Mudarabah Issuance is an additional Tier 1 capital with loss-absorbency and a first-of-its- kind in Nigeria which is being raised under the TajBank N100 billion Sukuk Mudarabah Programme aimed at strengthening the bank’s capital adequacy ratio.

Chief Executive Officer, TajBank, Hamid Joda reiterated the strategic importance of Islamic financing and how it can drive national development.

He thanked NGX for its support and pledged to continue to collaborate with the Exchange for the development of Islamic finance in the country.

According to him, the Sukuk bond issuance by TAJ Bank is a very important milestone in the history of Nigeria’s capital market.

 “I believe that after this issuance, we will see a number of companies in the Nigerian market coming out to issue Sukuk bonds and that will lead to the deepening of the non-interest market and eventually economic development of Nigeria,” Joda said.

Joda noted that the bank’s issuance received interest from both retail and institutional investors, resulting in a subscription of 113.6, per cent, adding that the oversubscription of the Issuance demonstrated that the investment culture in the country is still vibrant and there is sustained confidence in Nigeria’s path to economic recovery and stability.

“Millions of investors have been yearning for non-interest or Islamic instrument. We believe this is an opportunity for them to invest in such an instrument. The funds raised will be deployed into high-impact sectors that create jobs in Nigeria’s economy and in that way, it will have high-impact opportunities for millions of Nigerians.

“I believe with this move; we have inspired many other corporates in the financial space to come on board and issue Sukuk for greater development of our dear country,” Joda said.

Chairman, TAJBank, Alhaji Tanko Gwamna said the listing of the Corporate Sukuk was what the capital market needs to enhance liquidity and further grow Nigeria’s economy.

He said the bank was considering investing the net proceeds from the Sukuk in the manufacturing and agriculture sectors.

 “Manufacturing sector is the only sector that can take most of the youth out of the street and keep them engaged. Also, we are funding agriculture production and its value chain from start to finish. These two sectors are where we wanted to fund the Sukuk issuance.

 “The listing on the Exchange is for investors to trade in the Sukuk and diversify their investment.

“We are setting the trend and I’m sure a lot of corporates will come along. We are making more offerings because the market is in need of corporate Sukuk. It was a transparent exercise and people can trade with our Sukuk and it will offer more liquidity for economic growth,” Gwamma said.

He added that the bank would soon be back in the capital market to raise more funds.

Commonly referred to as Islamic Bonds, Sukuk – a non-interest-bearing bond- has helped government diversify its sources of funding while offering ethical investors an opportunity to invest in government-issued securities. The instrument has not only helped the government achieve a higher level of financial inclusion but has served as a reference for pricing Sukuk issued by other bodies, especially the private sector.

Nigeria Machine Tools Limited (NMTL) Osogbo has made another record as the first indigenous engineering manufacturing company to attain Shell Supplier Technical Assessment Record (STAR) for Stud Bolts and Flanges.

As a result, the products are now listed in Shell’s Technically Accepted Manufacturers & Products (TAMAP) database. NMT’s stud bolts and flanges were subjected to acceptance testing; overseen by a facility audit and company evaluation, at NMT design and manufacturing facility in Osogbo.

Shell carries out an extensive multi-annual vendor management testing procedure known as TAMAP, where vendors must undergo detailed product quality reviews.

TAMAP assesses the capability of manufacturers and ensures that manufactures prove the full functional performance of their industrial products.

To further authenticate the standard of the procedure, a personnel from Shell is actively engaged in the entire process where they challenge each phase of the supply chain process and when the products have passed the TAMAP, they receive a certificate of acceptance.

General Manager, Business Development and Corporate Affairs, Nigeria Machine Tools Limited (NMTL), Obehi Ojeaga said NMTL has proven itself as the leading integrated industrial engineering and manufacturing company in Sub-Saharan Africa.

She explained that NMT’s Stud Bolts and Flanges are all in full compliance with American Society for Testing and Materials (ASTM) and American Society of Mechanical Engineers (ASME) Standards and Customers’ specifications.

She added that NMTL’s products are available in different ranges including fully threaded studs, single and double ended studs; weld neck, threaded, slip on, socket, blind and lap joint flanges, with facing design options of; raised face, flat face, ring type joint and pressure class options of 150lbs, 300lbs, 600lbs, 900lbs, 1500lbs, 2500lbs, among others.

“Nigeria Machine Tools strives to provide our end-users with reliable, quality products that addresses all their needs. As the first indigenous company in Nigeria to receive Shell TAMAP approval for stud bolts and flanges, we are proud to have received our esteemed customer certification giving us the ability to provide this product to the industry on a wider scale,” Ojeaga said.

She pointed out that TAMAP listed products are confirmed to be in compliance with Shell’s quality standards and specific MESC codes to which all products used in Shell operations and projects worldwide must comply.

“This means a Shell buyer in Angola, a pipe distributor in Ghana and a Shell EPC Service provider in Nigeria who are all bound to recognize and work in alignment to these codes and specifications, are authorized to use NMT Stud Bolts and Flanges. This is to ensure that the custom quality demands set-forth by Shell on its fastener and flange manufacturers trickle into the supply chain.

“To attain this height in the marketplace, Nigeria Machine Tools has followed a path defined by high standards of professionalism, commitment to continuous improvement, premium attention to HSE and a strong determination to succeed. In addition to the TAMAP approval, NMT has also received the ISO 9001:2015 certification. NMT has remained ISO certified since 2014, maintaining a robust program that evolves through a system of continuous improvement anchored around a well implemented change management process, to ensure steady customer satisfaction.

“As part of its quality assurance process, NMT utilizes a Third-Party Independent Testing system for its products by IAS-accredited third-party laboratories to ensure compliance of supplied materials to ordered specifications as well as In-House Material Inspection cutting across visual, dimensional, positive material identification and some mechanical tests, all done independent of the third-party test. NMT’s in-house production operation is also guided strictly by well-defined processes and procedures developed in accordance with world class manufacturing and HSE standards,” Ojeaga said.

She explained that NMTL is also qualified as an approved manufacturer and registered with over 20 leading oil and gas and engineering companies including, Chevron, NLNG, ExxonMobil, TotalEnergies, Nigeria National Petroleum Company (NNPC), Saipem, Baker Hughes, Deltatek Offshore, TechnipFMC, AGIP, Daewoo E & C and so on.

She pointed out that the company has supplied and supported over 20 projects in Nigeria, thereby supporting the country’s drive towards industrialization and self-reliance in the manufacture of engineering goods, and conservation of foreign exchange through in- country manufacturing in the oil and gas sector.

She assured that NMT remains a fully indigenous company committed to the provision of locally manufactured, high-quality products and services to its valued clientele across a wide variety of industries, both within and outside Nigeria.