Category: Investors

Nigeria’s two largest publicly quoted companies –  MTN Nigeria Communications (MTN Nigeria) Plc and Dangote Cement Plc – are raising debt capital of up to N200 billion.

Both companies launched new issuances to raise new capital to augment their working capital and support business growth.

MTN Nigeria offered to raise up to N150 billion under its series 1 and 2 commercial papers (CP). MTN Nigeria offered 184-day CP with implied and discount yields of 7.5000 per cent and 7.2268 per cent. The telco also offered 254-day P with implied yield of 8.5 per cent and discount rate of 8.0253 per cent.

The net proceeds of the dual offer will be used to support working capital and corporate purposes.

Dangote Cement offered to raise N50 billion in three tranches of new bond issuances under its N300 billion debt issuance programme.

Dangote Cement issued Series 2 bond, including tranche A, B and C of five, seven and 10-year fixed rate senior unsecured bonds.

Dangote Cement plans to utilise the net proceeds from the bond issuance to fund expansion projects, refinance existing short-term debt, and for working capital requirements.

The pricing range for the three tranches was between 11.35 per cent and 13.00 per cent.

Dangote Cement is Sub-Saharan Africa’s leading cement producer, with a combined capacity of 51.55Mta across the continent including 35.25 Mta in Nigeria.

The Central Bank of Nigeria (CBN) at the weekend granted MTN Nigeria final approval to commence operations of its payment service banking subsidiary, MoMo Payment Service Bank (MoMo PSB) Limited.

With the payment service bank licence, MTN Nigeria will offer a wider range of mobile financial services beyond the traditional person-to-person mobile money transfers, such as lending and bill payments.

The final approval comes as MTN Group is on track to spin off its lucrative fintech business. The telco group had set this quarter as the deadline to spin off its financial services unit.

The Board of MTN Nigeria stated that it was excited about the final approval, reaffirming the commitment of the telco to the financial inclusion agenda of the country.

The board stated that it would inform the CBN the date of the commencement of operations of MoMo PSB in line with extant requirements.

The MoMo PSB is a key thrust of MTN Nigeria’s strategic growth initiative as the group seeks to fully explore the opportunities in its vast network.

Latest audited report of MTN Nigeria showed mobile subscribers of 68.5 million, with active data users of 34.3 million and active fintech subscribers of 9.4 million.

Key extracts of the audited report and accounts of MTN Nigeria for the year ended December 31, 2021 showed that gross revenue increased by 23.3 per cent to N1.7 trillion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.9 per cent to N877.1 billion with EBITDA margin increasing by 2.1 percentage points to 53.0 per cent. Profit after tax rose by 45.5 per cent to N298.7 billion, implying earnings per share of N14.67.

The granting of a banking licence in MTN’s most lucrative market is set to bolster the group’s operations in Nigeria.The country remains MTN’s biggest market and contributor of the lion’s share to the group’s revenue.

Dangote Cement grew its turnover by 33.8 per cent to N1,38 trillion in 2021 as strong sales in its largest domestic market continued to drive the group.

Key extracts of the audited report and accounts of Dangote Cement for the year ended December 31 2021 showed that turnover rose from N1.03 trillion in 2020 to N1.38 trillion in 2021. Nigeria’s contribution to group sales increased from N719.95 billion in 2020 to N993.3 billion in 2021. Other African operations contributed N397.32 billion in 2021 as against N318.68 billion in 2020.

The group sales volume stood at 29.3 metric tonnes, with Nigeria accounting for 18.61 metric tonnes while operations in other countries contributed 10.86 metric tonnes. Gross profit stood at N538.37 billion while net profit after tax closed 2021 at N364.44 billion.

The Aliko Dangote-led Board of Directors recommended payment of a dividend per share of N20 for the 2021 business year.

Chief Executive Officer, Dangote Cement Plc, Michel Puchercos, said the cement company is focused on making a positive difference, which is why sustainability is at the core of every part of its business.

“We are pleased to be recognised for the progress that we are making in our environmental disclosures and sustainability. The CDP rating upgrade clearly illustrates the steps that Dangote Cement is taking in its commitment to transparency on climate and environmental issues.

“In addition, our Alternative Fuel Project is at an advanced stage which aims to leverage waste management solutions, reduce CO2 emissions, and source material locally.This year, we co-processed 89,000 tons of waste, representing a 60 per cent increase over 2020,” Puchercos said.

He added that Dangote Cement remained focused on sound governance as it has been leading the way with its commitment to sustainability and best practices.

“We are driven by the goal of achieving the highest level of governance and building a sustainable brand for all stakeholders.  Transparency and consistency are at the core of every part our business culture,” Puchercos said.

He noted that Dangote Cement became the first Nigerian-listed company to report its financial results using XBRL format with the IFRS taxonomy, adding that adopting XBRL reporting format will strongly benefit Dangote Cement’s investors.

Dangote Cement is sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6 metric tonnes per annum across 10 African countries. It operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.

Dangote Cement has a long-term credit rating of AA+ by GCR and Aa2.ng by Moody’s due to its position, significant operational scale and strong financial profile evidenced by the company’s operating and net profit margins relative to regional and global peers, adequate working capital, satisfactory cash flow and low leverage.

Wema Bank Plc has restated its commitment to giving back to society as it created nine new millionaires with its ‘5 for 5 Promo’, which ended with a final draw at the weekend.

The event held at the Wema Bank Purple Academy in Ilupeju, Lagos, was overseen by officials of the National Lottery Regulatory Commission (NLRC), the Federal Competition and Consumer Protection Commission (FCCPC), and Lagos State Lotteries & Gaming Authority (LSLGA).

The draws, which started on July 1, last year, has produced 639 winners from the country’s six geo-political zones, with N31.5 million handed out to customers. These include nine N1 million winners, 180 N100,000 winners, and 450 N10,000 winners.

Abubakar Ayuba, a trader using the bank’s digital platform, ALAT By Wema, emerged as the final draw winner. He was informed of his good fortune via phone during the event. The overjoyed Ayuba expressed his delight through an interpreter who spoke Hausa and thanked Wema Bank for the gesture.

Managing Director, Wema Bank Plc, Ademola Adebise, expressed excitement about the loyalty reward promo created as part of activities marking the bank’s 77th Anniversary.

“For the past nine months, we have rewarded our loyal customers for their patronage and support. Today, we will be concluding the campaign by having our ninth and final draw. After the draws, 639 loyal Wema Bank customers will have received total cash prizes of N31.5 million. This reinforces our commitment to empowering lives,” Adebise said.

The event’s highlight was the  testimony of Chigozie Nweke, a petty trader and one of the N100,000 winners last December draw at the grand finale. She had invested her  cash in the yam business she started last December and scaled the business massively that by April 7, she took delivery of tubers of yam from the North worth over N2 million.

“I was struggling to start yam trading, and I could not register with the yam seller’s union. Wema Bank gave me N100,000. I paid the union money, paid my tithe, and put the rest in the business. It has not been easy, but yesterday they brought yam that is more than N2 million for my business. I want to say thank you so much, Wema Bank,” Chigozie stated.

Adebise said: “What we have seen today goes beyond supporting our customers. The testimony of the woman who started the yam business is very touching for us. We believe that this aligns with our aspirations, to support our customers to take them to the next level.”

Senior Legal Officer, Lagos State Lottery and Gaming Authority, Mrs. Oyinkan Kusamotu, expressed satisfaction with the integrity of the 5 for 5 Promo.

“The Wema Bank Promo has been excellent. I’ve seen how transparent they are. I think they are impacting lives. They are doing a lot of good, especially considering the economic situation,” Kusamotu said.

The NLRC representative, Mrs. Nkiru Onuzulu, commended the bank for touching lives.

“We know how the country is. Somebody getting N1 million, we all know what that means, and the draws and processes have been transparent. I am happy to say that there has not been any negative report. Wema Bank has delivered on its promises,” Onuzulu said.

Divisional Head, Retail & SMEs, Wema Bank, Dotun Ifebogun, expressed satisfaction with the result and impact of the promo.

“Over the past eight months, we’ve had strides that cover several locations within the entire geography of Nigeria. We’ve been to Kano, Abuja, Ibadan, Benin, and Port Harcourt. The whole idea is that we are not sitting in Lagos and doing it all by ourselves. Digitally doing this will also enable anyone across the globe to be a part of this,” Ifebogun said.

He noted that the promo produced more female winners. “When we set out with this promo, we didn’t know the theme for the International Women’s Day. But I can tell you that we’ve inadvertently broken the bias, as we had women as winners in this entire process. We had five female millionaires among the nine millionaires. This is not to say that the men are not acknowledged,” Ifebogun said.

The’ 5 for 5 Promo’ is one of the many ways Wema Bank is sustainably touching the lives of loyal customers and giving them a great sense of inclusion.

Adebise emphasized this, concluding that “we are going into season 2, which will bring even better support for our customers. It will be around the usage of our platforms which is also in line with our financial inclusion strategy and sustainable goals of supporting women and rewarding our teeming customers for their loyalty to our brand”.

A real estate firm, Veritasi Homes & Properties Limited, has registered a N10 billion commercial paper (CP) programme on FMDQ Securities Exchange to raise short-term capital for the development of its real estate portfolio.

The CP programme allows Veritasi Homes to raise finance for a tenor up to 270 days from the debt market at a time in the future it deems suitable. The registration of the CP programme underscores FMDQ Exchange’s role as a market organiser and lends credence to its reputation of pioneering innovation within the financial markets.

Veritasi Homes is a real estate company providing marketing, advisory and developmental services across the real estate value chain in Nigeria. The firm’s vision is to be a world-class real estate development company driven by value innovation and optimum service to deliver affordable homes.

Managing Director, Veritasi Homes & Properties Limited, Mr. Nola Adetola, said the company was delighted with the registration by FMDQ Exchange of the N10 billion CP programme.

According to him, the approval of the CP programme represents a  milestone in the company’s short- term growth aspirations.

“We are delighted that the proceeds from the issuance of the CP will be applied to develop superior real estate projects designed for clients at home and in the diaspora. We want to thank Mega Capital Financial Services Limited, the transaction sponsor, and Pathway Advisors Limited, our financial adviser, for their efforts and professionalism in getting this programme approved. Our commitment as a brand to building a trustworthy business remains, and we look forward to other future engagements with the capital market,” Adetola said.

Managing Director, Mega Capital Financial Services Limited, Mr. Emmanuel Egbumokei, noted that Veritasi Homes is a real estate development company with focus on creating homes for the low and middle-income earners.

“This approved CP programme will enable Veritasi Homes & Properties Limited access funding from the debt capital markets to actualise its strategic objectives,” Egbumokei said.

In accordance with its strategic objectives to provide credible market structures to corporate and commercial businesses with the opportunities to meet their short-term funding requirements, FMDQ reiterated its commitment to key market development initiatives to ensure that growth and development opportunities abound for the markets under its purview.

 

Flour Mills of Nigeria Plc has appointed Mr. Bola Adeeko as the Director for Special Projects. The appointment took effect on March 1, 2022.

The company stated that Adeeko will provide the executive leadership for the initiation and flawless execution of all critical business growth initiatives to achieve its five-year strategic plan.

“He will lead the leveraging of technology to develop a competitive edge in shared services and other business-critical capabilities. As we explore other areas of business expansion opportunities, he will also lead the emerging and major opportunities to ensure they deliver the desired objectives,” Flour Mills stated.

Adeeko is a seasoned business executive with 28 years’ experience. He has gained a distinguished track record from working with highly reputed global institutions, including Sara Lee Corporation, First Data Corporation, JP Morgan Chase, where he rose to become Vice President, and Global Trade Finance.

He has also held several leadership positions such as Chief of Staff and Head Corporate Services Division at the NGX Exchange Group (formerly Nigerian Stock Exchange), Interim CEO at Central Securities Clearing System Plc (CSCS), and most recently, Head of Business Support Services Division, NGX, overseeing several mission-critical functions like human capital, finance, legal, corporate sustainability, enterprise risk management, and brand marketing.

Adeeko is a fellow and life member of the Institute of Directors, a fellow of the Institute of Credit Administration, and an Associate of the Chartered Institute of Stockbrokers. He is also an alumnus of executive courses at INSEAD and Harvard Business School. He holds a BSc. Accounting from the Olabisi Onabanjo University, and MBA – Finance and Marketing from Hood College, Frederick, Maryland, United States.

crops and raw materials to supply its world-class processing facilities across Nigeria, and distributing its innovative food brands to its customers.

 

Futureview Securities Limited has identified inflationary pressure as a major risk to return on investment across assets classes and urged investors to focus on stocks with strong fundamentals.

At the moment, many investors are apprehensive of the likely impacts of energy crises on the earnings of quoted companies at the end of the first quota this year. This has created another level of uncertainties in investment decision.

Managing Director, Futureview Securities, Ijeoma Amaechi, advised investors to focus more on the stocks of companies with strong fundamentals to minimize risks.

“One of the key challenges facing investors in the Nigerian Market is inflation. To earn Real Return on Investment (ROI), investors need to earn ROI that is higher than inflation which is currently at 15.7 per cent.  This return can be achieved in the Stock Market because of the low interest rate regime in the fixed income space.

“Unfavourable macroeconomic factors as well as uncertainties surrounding pre-election year are also negatively influencing investors’ appetite for risky assets. Investors should diversify their portfolios and have a mix of risk assets and fixed income assets. The risk assets will provide opportunity for high returns while the fixed income assets will provide buffer against unexpected negative returns from the Stock Market. It is also noteworthy that investment in mutual funds is a hedge against inflation,’’

The management of the Securities and Exchange Commission has assured staff of the Commission of its commitment to ensure industrial peace and harmony in the SEC.

Executive Commissioner Corporate Services of the SEC, Mr. Ibrahim Boyi stated this while addressing protesting members of staff of the SEC at the Commission’s headquarters.

Staff had expressed dismay over issues ranging from delay in the conduct of promotion exercise as well as appointment of Directors in the Commission.

Boyi assured the staff of Management’s readiness to dialogue with the staff in a bid to ensuring industrial harmony in the Commission.

“The board of the Commission is  meeting to approve the appointment of qualified senior staff as directors and we believe this process will be concluded very soon,” Boyi said.

He assured that the management has listened to the demands of the staff and as a responsive team, they will do everything within their capabilities to ensure that all grievances are promptly addressed.

“We are already in discussions with the staff representatives as we speak, and we hope that at the end of today we will come out with agreements that would be beneficial to all and help to ensure peace and industrial harmony in the SEC,” Boyi said.

 

MFS Africa, the largest pan-African digital payments hub, has completed acquisition of Capricorn Digital Limited, otherwise known as Baxi.

The transaction was first announced last November pending the approval of the Central Bank of Nigeria, which has been granted.

Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks, with over 90,000 agents. It provides a cash-in and cash-out offering as well as value-added services such as account opening, money transfer, bill payment and more to the last mile.

As well as providing entry into the market for MFS Africa, the acquisition also provides exciting synergies: Baxi simplifies and integrates online and offline payments for SMEs and merchants in Nigeria through its omni-channel distribution network, while MFS Africa simplifies cross-border payments and integrates payments via one hub.

Baxi’s growth has accelerated over the last 24 months achieving over $1.6 billion of transactions in 2021. MFS Africa will build Baxi into a key node on its digital payment network, enabling customers to make regional and global payments to and from Nigeria.

Baxi’s distributions network represents a crucial interface for banks, fintechs and other financial services providers to reach Nigeria’s 100 million financially unserved or underserved individuals and small businesses.

Meanwhile, MFS Africa has been named one of the world’s ‘Top 100 Cross-Border Payments Companies’ by FXC Intelligence in its 2022 Market Map list. The list is published annually to recognise and celebrate companies that have championed innovation in global payments and are positioned to lead the next era of payments excellence. The final list is based on FXC Intelligence tracking the activity of more than 15,000 competitors in the cross-border payments sector.

Founder /Chief Executive Officer, MFS Africa, Dare Okoudjou, noted that to be named one of the top 100 cross-border payments companies by FXC Intelligence was truly gratifying for the company and reflected the hard work and dedication of the entire team.

“We are proudly pan-African and the accolade reflects our mission of making borders matter less, not only across the continent, but globally. This has been a momentous time for MFS Africa and we are determined to build on our success in the years ahead,” Okoudjou said.

Chief Executive Officer, FXC Intelligence, Daniel Webber said MFS Africa was a key part of Africa’s growing ecommerce landscape, catering to merchants, money transfer businesses and small businesses across the continent.

According to him, as one of Africa’s biggest digital payments gateways and a reach of over 600 cross-border payment corridors, MFS Africa earns its place in the cross-border payments 100.

MFS Africa believes that making a payment should be as easy as making a phone call.

“We believe that access is the currency with which Africans can overcome barriers and injustice and render borders insignificant. We give our partners access to a borderless world of opportunities, connecting enterprises, banks, mobile money operators, and money transfer companies to each other and to over 320 million mobile money wallets in over 35 African countries.

“Our infrastructure enables disbursements and collections, and connects partners to our network footprint of multinational organisations, banks and cash pickups through our API or Business portal Portal, Beyonic. In addition to mobile remittance services, we enable merchant payment, bulk payment, bank-to-wallet transfers, and an array of other cross border and domestic digital payments services. MFS Africa works in close partnership with players across the ecosystem to bring simple and secure mobile financial services to un- and under-banked customers. For millions of people on the continent and beyond, we make borders matter less,” MFS Africa stated.

Capricorn Digital Limited (Baxi) is one of the largest independent non-bank SME focused electronic payment networks in Nigeria operating an Omnichannel platform that enables digital payment through mobile, in-store location, online, wallets and business-to-business channels.

Baxi’s mission is to bring a wide bouquet of digital products and services to the grass root and mass-market consumers through innovation, technology and a world-class retail distribution network that is driven primarily by agents and merchants.

The company’s vision is to have a retail presence on every street and a digital presence in every household in Nigeria by creating a one-stop-shop for accessing a broad range of products and services, it not only simplifies the buying experience for its end consumers but also creates a powerful tool for its agents.

 

The Board of Directors of Neimeth International Pharmaceuticals Plc has explained that the company plans to raise some N5 billion in new equity capital to expand its production capacity and boost production.

Chairman, Neimeth International Pharmaceuticals Plc, Dr. Ambrosie Orjiako said the net proceeds from the new capital raising would be used to construct a world-class factory compliant to World Health Organisation (WHO) Standards of Good Manufacturing Practice (cGMP) at Amawbia in Anambra State.

He said part of the new capital would also be used to complete the ongoing facility upgrade at the company’s Oregun factory.

He added that the remaining part of the new capital would be used as additional working capital.

On completion, the Oregun plant alone will add additional 300 per cent to the company’s production capacity.

Orjiako said these projects would not only sustain the current upbeat performance of the company but will give her a quantum leap into the league of leading global health care commodities producers.

Shareholders of Neimeth had at their annual general meeting approved the plan of the board to raise the sum of N5 billion through a hybrid offer of rights to existing shareholders and  private placement. The company will raise N3.67 billion through rights issue and N1.32 billion through private placement.

The rights issue will be offered at the discounted cost of N1.55 per share.  The company’s shares traded above N1.70 Kobo for most of this month.

To achieve this, the shareholders approved the creation of 2.37 billion additional ordinary shares which will be allotted at the rate of five new shares for every four shares currently held in the company.

The shareholders also approved that the company raise equity capital of N1.32 billion by way of a private placement at a premium price of N2.10 for 628.753 million ordinary shares.

Managing Director, Neimeth International Pharmaceuticals Plc,  Matthew Azoji, said the  capital market is the most viable and cheaper option to source long term  funds because of the high cost of funds through other sources.

“We cannot finance long-term projects with short-term funds from banks. That will not be expedient and cost effective. It will also not serve the best interest of shareholders,” Azoji said.

He explained that the company considered prevailing economic situation in the country  that also affect shareholders before deciding to add the private placement equity.

“We did not want to put the entire burden of N5 billion on shareholders, that is why we have decided to add private placement to the fund raise,” Azoji said.

The fortunes of Neimeth has taken an upward turn since 2018 when it returned to profitablity after nearly a decade of predominantly losses.  From a loss of N404.9 million in 2017 the Company made profit of N166.4 million in 2018, N304.4 million in 2019, N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million in 2021.

Orjiako said the board was working with management to ensure that the growth trajectory is not only sustained but also enhanced beyond what has been accomplished in last four years of consistent growth in turnover and profitability.

Neimeth has  emerged  from an era of constant losses to a period of steady growth in both turnover and profitability.

In the past three years  the company has built a  regime of growth and profitability.  In 2019 and 2020 business years, the company recorded growth in both turnover and profit after ten years of lull.

Following the same growth trajectory, the share price of Neimeth increased  343 per cent from 40 kobo as at September 30, 2019 to N1.77 as at March 14, 2022.  Between 2012 and 2021, the earnings per share of Neimeth grew 280 per cent from negative 5kobo to 14 kobo per share. The ability of the company to create wealth for shareholders has been applauded by industry and market  watchers and regulators.  In 2019, Azoji was named among Nigeria’s top 25 CEOs on account of the wealth creation ability of the company.  And in 2021 the company was rewarded with the award of the Nigerian Investor Value Awards as the Best Performing Stock (Healthcare) in the Nigerian capital market on account of the value it created for shareholders through capital gains.

Also in 2021, Neimeth was nominated along with Airtel West Africa Plc and FBN Holdings Plc for the award of the listed company of the year. These were meant for companies that attained high level earnings for investors in this case over 300 per cent.

The company has equally transited from non-dividend payment which lasted for a decade to one of consistent payment of dividend to shareholders. In 2020 it applied its profits to restructure its balance sheet and returned to dividend payment.  In that year it paid a dividend of 6.5 Kobo for every 50 Kobo share and in 2021, this was increased by 8 per cent to give shareholders 7.0 kobo for every 50 Kobo share held in the company.

 

Wema Bank Plc’s digital bank, ALAT by Wema, has announced the call-for-entries for the second leg of the 2022 edition of its Hackathon programme tagged #Hackaholics 3.0-Building the Future.

Head of Innovation, Wema Bank Plc, Solomon Ayodele said entry submission for the second leg is ongoing and the application portal will be closed this Friday.

The pitch event will hold at the AmphiTheatre, Babcock University, Remo, Ogun State.

According to him, Babcock University is expected to host over 500 students and guests for this phase of the competition.

He explained that the Hackaholics programme is targeted at young Nigerians who will devote their coding, product curation, and pitching skills towards providing solutions to rising issues across multiple sectors. The solutions are to focus broadly on the limitless possibilities in the future of technology, like NFTs, Web 3.0, Metaverse, Blockchain, AR, VR, AI, and IoT.

Applications for the first leg of the tech competition began on Saturday, February 5, 2022. This was followed closely by a pitch session on Tuesday, February 15 at the Federal University of Technology, Akure (FUTA) where 10 bright young minds battled it out for a chance at the ultimate prize.

Ayodele said the programme aims to discover and nurture seed-stage startups to become the next unicorn out of Africa and serve as a pipeline for grooming hirable tech talents in key areas – solutions engineering, data science, product management and product design, among others.

“The tech space is filled with innovative solutions that can solve critical challenges across target sectors that will create great value within the society. We want to encourage early-stage solution providers and be an integral part of the change. We are humbled to discover and support the next generation of tech giants who will use their creativity and talent to birth the future we all desire.

“We truly believe our aspirations as an organization align with the ambitious desires of these young minds,” Ayodele said.

He added that the next round of live pitches will begin on Tuesday, April 5, 2022, and end on Thursday, April 7, 2022, at Babcock University. Selected candidates will pitch their ground-breaking ideas to a panel of judges who will select the top contenders who will vie for N5 million in cash prizes at the grand finale in Lagos.

Ayodele urged interested applicants to apply through the dedicated link or through Wema Bank’s website.