The Nation Newspaper

Tag: placement

  • Afreximbank beats private placement target on Depository Receipt

    The African Export-Import Bank (Afreximbank) is off to a successful listing of its Depositary Receipts (DRs) on the official market of the Stock Exchange of Mauritius (SEM).

    This is coming on the heels of a successful close of the private placement with subscriptions far in excess of the $100 million minimum target set to launch the DR programme.

    A statement by the Head of Communications, Afreximbank, Obi Emekekwue,  said the first day of listing and trading of the Afreximbank DRs will be on October 4, when 5,000 DRs must, by regulation, be made available for trading at a price of $4.30 per DR. The private placement closed on September 26.

    In its communique on July 24, SEM had announced approval of the proposed listing on the official market of up to 69,770,000 depositary receipts backed by 6,977 Class D shares of Afreximbank, subject to Afreximbank raising the minimum aggregate amount of $100 million through the private placement. The approval was for Afreximbank to list the full 69, 770,000 within 12 months.

    In pursuance of the DR issuance, Afreximbank organised investor meetings and road shows in Port Louis, Lagos, Abu Dhabi, Dubai, Nairobi, New York, and London, drawing very positive responses from the investing public. Afreximbank’s goal was to achieve a subscription level of between the required aggregate minimum of $100 million and an upper limit of $300 million, notwithstanding the 12-month window allowed.

    Reacting to the conclusion of the private placement, Afreximbank President, Dr. Benedict Oramah, said he was impressed by the high level of support received from investors, saying that the DRs would enhance the bank’s capitalisation, enable it to contribute more significantly to narrowing the trade financing gap in Africa and grow the intra-African trade and export manufacturing in Africa. He added that it would pave the way for greater private sector equity participation in the bank and deepen Africa’s capital markets.

    “We are pleased to have successfully opened the bank to the equity capital markets. This will complement the tremendous support Afreximbank continues to receive from its core sovereign shareholders and place the bank in a stronger position to pursue the vast opportunities before it,” Oramah said.

  • Peterside seeks better placement for Africa in IMO

    Peterside seeks better placement for Africa in IMO

    The Chairman of the Association of African Maritime Administration (AAMA),  Dr. Dakuku Peterside, has called for increased representation of the continent on the International Maritime Organisation (IMO), Council and its Secretariat.

    Peterside, who made the appeal when he led a delegation of some members of AAMA Executive Committee to meet with the IMO Secretary General, Mr. Kitack Lim at the Organization’s Headquarters in London, said that there was the need for Africa’s proportionate representation to commensurate with the size of the continent’s membership of IMO.

    According to the AAMA Chairman, “you will agree with me that the number of African Nations at the council of the IMO is disproportionate to the size of the continent’s representation at the global maritime body, therefore to drive Africa’s maritime sector development agenda, there is need for a proportionate and effective representation of the continent in council and at the secretariat”, he said.

    Peterside, who is also the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) noted the various initiatives embarked upon by the AAMA leadership including cooperation by the member nations in capacity building, to impact on the continent’s maritime sector.

    IMO Secretary General Kitack Lim commended the African Maritime Administrations for their high level organization and a proactive leadership of AAMA with a drive towards ensuring that Africa Maritime sector remains viable.

    He urged African Nations to continue working closely to remain a formidable block that would be of influence in decision making at the IMO.

    Lim noted that he is from a developing country despite the recent successes of his home country so appreciates the African position. He pledged to continue to champion greater assistance to developing countries so they will benefit more from global maritime trade. He promised to Liaise with technical staff of IMO and get back to AAMA on the various requests made.

    The AAMA delegation includes the Director General of Ghana Maritime Authority Mr. Kwame Owuaru, CEO of the South African Maritime Safety Authority (SAMSA), Mr. Sobantu Tilayi, others include the Executive Director Finance and Administration, NIMASA, Mr. Bashir Jamoh, the chairperson of African Maritime Advisory Group (AMAG), Azara Prempeh  and Phimulani Myeni of  South Africa.

    Mr. Juvenal Shiundu, a Director in IMO of Kenya origin and Mr. William Azuh, Head of IMO technical section for Africa joined the Secretary General of IMO to receive the AAMA delegation.

    The AAMA team also recently met with representatives of African countries at the International Maritime Organisation (IMO), under the auspices of African Maritime Advisory Group (AMAG) at the IMO Headquarters in London.

  • Sterling Bank completes N19b special placement

    Sterling Bank completes N19b special placement

    Sterling Bank Plc has increased its equity funds by some N19 billion as the bank has rounded off the process for a multi-billion Naira special placement.

    Regulatory filing indicated that Sterling Bank successfully issued about 7.2 billion ordinary shares of 50 kobo each to a new strategic investor. The Nigerian Stock Exchange (NSE) has admitted the new shares to the outstanding shares in the name of Sterling Bank, rounding off the issuance process.

    With the new listing, total issued shares of Sterling Bank opened yesterday at 28.79 billion ordinary shares of 50 kobo each with market value of N67.08 billion.

    Shareholders of the bank had in November 2014 approved a resolution empowering the board of the bank to undertake the special placement as part of a N50 billion new round of capital raising. Shareholders approved a resolution authorizing the board of directors of the bank to issue about 7.472 billion ordinary shares of 50 kobo each at N2.65 per share to Messrs. Silverlake Investments Limited or such other identified strategic investor.

    In another resolution, the board of the bank was empowered to raise additional capital up to $200 million or its equivalent in Naira. The fund could be raised through any or a combination equity, global depository receipts, quasi equity, convertible loans, medium term notes, bonds and any other debt instrument.

    Besides, the bank plans to explore public offering, rights issue, private placement either as a standalone transaction or by way of a programme, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, at such dates and time subject to such terms and conditions, including through a book building process or other processes as the directors may deem fit and subject to the approval of the regulatory authorities.

    The new capital is expected to strengthen the bank’s performance, which has successively improved over the periods. Interim report and accounts of the bank for the third quarter ended September 30, 2014 showed that while gross earnings grew by 12.1 per cent, net interest income rose by 32.8 per cent. This further bloomed into 41.3 per cent and 39.2 per cent in pre and post tax profits respectively.

    Gross earnings closed September 2014 at N73.01 billion as against N65.12 billion recorded in comparable period of 2013. Net interest income rose from N24.22 billion in third quarter 2013 to N32.1 billion in third quarter 2014. Profit before tax jumped to N8.50 billion in 2014 as against N6.02 billion in 2013. After taxes, net profit rose from N5.07 billion to N7.06 billion.

    The bank’s pre-tax profit margin rose from 9.24 per cent in third quarter 2013 to 11.6 per cent in September 2014, underlying the improving profitability of the bank.

    Managing director, Sterling Bank Plc, Mr Yemi Adeola said the performance of the bank was driven by increasing brand acceptability as shown in its growing revenues and reduction in impairment charges.

    He noted that the 41 per cent growth in profit before tax despite pressures on earnings arising from monetary policy changes was driven by improvements in revenues and a 30 per cent reduction in impairment charges.

    According to him, interest income increased by 15 per cent, while interest expense declined by three per cent resulting in a 32 per cent growth in net interest income. The bank recorded a 20 per cent growth in total assets to N847 billion and a 19 per cent growth in deposits to N679 billion with a 100 basis points reduction in cost of funds to 4.9 per cent.

  • SEC limits private placement to 30%, reduces cost of issue

    SEC limits private placement to 30%, reduces cost of issue

    Quoted public limited liability companies will henceforth not be able to issue more than 30 per cent of their outstanding paid up share capital through private placement.

    Securities and Exchange Commission (SEC) is currently reviewing rules and regulations on new issue. A draft of the amendments indicated that public quoted company shall not be able to offer more than 30 per cent of their issued share capital in private placement.

    According to the amendments, the aggregate number of shares to be offered through private placement by a public quoted company ‘shall not exceed’30 per cent of its existing issued and paid-up capital prior to the offer.

    Also, the apex capital market regulator plans to reduce the cost of issue in the primary market by aggregating all costs to the issue under a single bracket.

    According to the amendments, the cost of issue shall not exceed 3.17 per cent for equity and 3.9375 per cent for bonds of the gross total proceeds, indemnity fee, advertisement, and printing and take on fees for registrars, from the issue or such percentage as the Commission may prescribe from time to time. Some cost elements like advertisement, indemnity fee and printing fee among others were previously not included under the same cost bracket.

    Many companies had used the private placement window to raise new funds in recent time. Wema Bank and Unity Bank Plc recently raised new equity funds through private placements. Unity Bank had raised N39.22 billion in combined rights and special placement offers.

    Unity Bank floated a rights issue of 38.45 billion ordinary shares and special placement of 40 billion ordinary shares, both of which were offered at par value.