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Tag: Stanbic IBTC

  • Stanbic IBTC ETF 30 to grow capital market

    Stanbic IBTC ETF 30 to grow capital market

    THE overarching interest of the Stanbic IBTC Exchange Traded Fund 30 (ETF 30), which initial public offering opened on Monday,  September 15, this year, is to grow the fortunes of the nation’s capital market.

    Making this submissionwas Olumide Oyetan, the Chief Executive Officer of Stanbic IBTC Asset Management Limited.

    The event was for investors and stakeholders in Lagos.

    Justifying the need for the Fund, Oyetan said the company, Nigeria’s leading asset management firm, sought to expand participation of domestic investors in the capital market, which will help in the capital formation process and in turn generate significant returns to investors while fueling wealth creation as well as economic growth.

    “The opening of the Stanbic IBTC ETF 30 is a direct response to increased investor demand for passive investment strategies that will deliver the market return for the index being tracked, which in this case is the NSE 30 of the Nigerian Stock Exchange (NSE). The Stanbic IBTC ETF 30 provides a transparent and flexible structure that allows investors efficiently gain exposure to the securities of these companies that have over time out-performed the broad equity market,” said Oyetan.

    The offer, which closes on Wednesday, October 15, 2014, opened with 10,000,000 units of the Fund available at N100 each at par. It offers a minimum subscription of 10,000 units and multiples of 5,000 units thereafter.

    Oyetan said the Fund is designed to track the performance of the NSE 30 Index which comprises of the top 30 companies listed on the NSE in terms of market capitalisation and liquidity. The index serves as the flagship benchmark for the stock market as it represents 92 per cent of the NSE’s market capitalisation and the Stanbic IBTC ETF 30 will replicate the price and yield performance of the index. The Fund, Oyetan added, will invest 100 per cent of its assets in the same portfolio of securities that comprise the NSE 30 Index in proportion to their weightings in the Underlying Index.

    “The Fund represents a convenient and efficient way for investors to have access to the top 30 most capitalised and liquid stocks on the NSE, in a cost-effective manner. We believe that it will appeal to sophisticated and institutional investors that believe in the growth story of companies listed on the NSE and by extension, in the abundant growth opportunities that exist in Nigeria,” added Oyetan.

    The commitment, expertise, experience and global clout of the Standard Bank Group, to which Stanbic IBTC Asset Management Limited belongs, will be deployed to ensure success of the Stanbic IBTC ETF 30, Oyetan assured.

  • Investors upbeat about Stanbic IBTC’s N1bn Exchange Traded Fund

    A LOT seems to be working in favour of Stanbic IBTC Asset Management, arguably Nigeria’s leading asset management firm and a member of Standard Bank Group, the largest banking group in Africa, as some investors are already showing positive interest in the initial public offering for the Stanbic IBTC Exchange Traded Fund 30 (ETF 30).

    The Stanbic IBTC Exchange Traded Fund 30 (ETF 30) flagged off on Monday,  September 15, with 10,000,000 units of the Fund available at N100 each at par, is expected to close on Wednesday, October 15, 2014, while the deal hopes to be sealed by December, the bank said.

    The offer, which has received approval from the Securities and Exchange Commission and the Nigerian Stock Exchange, will have a minimum subscription of 10,000 units and multiples of 5,000 units thereafter. Stanbic IBTC Capital Limited is the issuing house to the offer.

    A cross-section of investors and market operators who at a forum recently scored the Stanbic IBTC Exchange Traded Fund 30 (ETF 30) high, saying it has the potential to deepen the market.

    Firing the first salvo, Mr. Kola Yakub, who noted that Exchange Traded Fund was an emerging investment window in the country, expressed optimism that the bank judging by its pedigree has the potential to grow the market segment.

    Echoing similar sentiments, Mr. Bawo Oritsejafor, of UBA Mutual Funds, said the Exchange Traded Fund was an idea whose time has come, even as he urged prospective investors to put their money where their mouth is.

    According to the  Olumide Oyetan, Chief Executive Officer of Stanbic IBTC Asset Management Limited, managers of the Fund, “The opening of the Stanbic IBTC ETF 30 is a direct response to increased investor demand for passive investment strategies that will deliver the market return for the index being tracked, which in this case is the NSE 30 of  The Nigerian Stock Exchange (NSE Our ETF is merely providing  a transparent and flexible structure that allows investors efficiently gain exposure to the securities of these companies that have over time out-performed the broad equity market.”

    He stated that the fund is designed to track the performance of The NSE 30 index which comprises of the top 30 companies listed on The NSE in terms of market capitalisation and liquidity. The index serves as the flagship benchmark for the stock market as it represents 92per cent of The NSE’s market capitalisation and the Stanbic IBTC ETF 30 will replicate the price and yield performance of the index.

    “The fund represents a convenient and efficient way for investors to have access to the top 30 most capitalised and liquid stocks on The NSE, in a cost effective manner. We believe that it will appeal to sophisticated and institutional investors that believe in the growth story of companies listing on The NSE and by extension in the abundant growth opportunities that exist in Nigeria,” added Oyetan.

    An Exchange Traded Fund (“ETF”) is an investment vehicle that tracks an index, a basket of assets, or a commodity but trades like regular shares on a stock exchange. The Fund will invest 100per cent of its assets in the same portfolio of securities that comprise The NSE 30 Index in proportion to their weightings in the Underlying Index.

  • Stanbic IBTC bank donates bus to Benue varsity

    A commercial bank, Stanbic IBTC, on Friday donated a 30- seater bus to the Benue State University (BSU) to ease its transportation challenges. The Regional Manager, Mr Alex Ayabam, who made the donation on behalf of the bank, said the bank appreciates the state government for its patronage. Ayabam restate the commitment of the bank to continue its support to the state towards uplifting the living standard of the people. Receiving the bus on behalf of the university, Gov. Gabriel Suswam of Benue commended the bank for the gesture.

    He said the bus would assist the university in tackling some of its transportation challenges. The governor urged the university management to put it to proper use. Suswam said the university was a special project to him and promised that he would continue to support its programmes even after his tenure as governor. Responding, the Vice- Chancellor, Prof. Charity Angya, thanked the management of the bank for living up to its corporate social responsibilities. She also commended the governor for his efforts towards the growth of the university and assured that the institution would continue to contribute its quota to the development of the society. (NAN)

  • NBET names Stanbic IBTC agent

    NBET names Stanbic IBTC agent

    Stanbic IBTC Bank has been appointed by the Nigerian Bulk Electricity Trader (NBET) Plc as the payment management services provider to the bulk trader.

    The strategic arrangement, coming ahead of the transitional electricity market (TEM), is expected to make the electricity trading system transparent as well as instill confidence in the electricity market in Nigeria.

    The appointment would see the bank, which emerged through a transparent selection process handled by KPMG professional services, in line with extant regulations, undertake payments on behalf of the bulk trader and also support its treasury functions.

    As the Bulk Trader’s payment agent, Stanbic will be responsible for the efficient and effective payment processing between NBET and the GENCOs in line with the underlying power purchase agreements.

    Managing Director and Chief Executive Officer, NBET, Rumundaka Wonodi, said the engagement is a critical marker for NBET’s preparation for the transitional electricity market and that the appointment is in line with its strategy of employing the best service providers to complement its in-house competence. Wonodi said it was important for them to have gone through the procurement part to contract an agent that would support the bulk trader, thereby “keeping it a lean and efficient institution.”

    “One of the issues that we have had in the electricity market is that before the transition electricity market, even before this current period, payments and transactions seem to be crowded in a way that is not very clear to market participants,” Wonodi said. “So through this process, we hope that the generation companies will have the confidence and the comfort that when they send invoices to us, they have an institution that has the capacity to undertake those services on our behalf. That way, the confidence in the market would be enhanced and sustained.”

    Speaking at the ceremony, Chief Executive Officer, Stanbic IBTC Bank, Mr. Yinka Sanni, emphasized the bank’s long-term commitment to servicing the efficiency and transparency initiatives from NBET. He said having the bulk trader among its numerous clients was a thing of pride to the bank and commended the selection process, which he described as thorough, credible and transparent.

    Sanni said: “NBET as our strategic partners help concretize the bank’s objective of providing stellar services across the power value chain in the recently privatized Nigerian Electricity Supply Industry as it evolves into a fully market-led sector.”

  • Stanbic IBTC to raise N30b Tier II capital

    Stanbic IBTC to raise N30b Tier II capital

    Stanbic IBTC, the Nigerian unit of South Africa’s Standard Bank, plans to raise up to N30 billion in Tier II capital.

    The  lender’s Managing Director/CEO, Mrs.  Sola David-Borha, who confirmed the capital raise during an analyst’s conference call,  told Reuters that the actual amount would depend on market conditions and regulatory guidelines. She did not provide a timeline.

    She said the lender is aiming for a 15 per cent loan growth for the second-half of 2014, targeting business customers, after it grew loans 18 percent in the first-half.

    Also, Ecobank Transnational Incorporated’s (ETI) unit in Nigeria, sold $200 million of dated subordinated notes due in 2021 to join other lenders in Nigeria raising funds through debt sales.

    The issuance has a yield of nine per cent and a coupon of 8.75 per cent, according to information from a person with knowledge of the offering, who asked not to be identified because they weren’t authorised to speak publicly.

    Bloomberg said Deutsche Bank AG and Standard Chartered Plc are the lead managers.

    The notes are expected to be eligible as Tier 2 capital by the Central Bank of Nigeria (CBN), according to the source.

    Also, Access Bank Plc sold $400 million of subordinated notes in June with the yield falling 80 basis points since they were issued to 8.7 per cent. First Bank of Nigeria sold $450 million of bonds on July 18.

    The banks are raising money to help fund power, oil exploration and manufacturing projects in the country. Ecobank Transnational, a lender based in the Togolese capital of Lome that operates in 36 African countries, said net income rose 15 per cent to $194 million for the six months through June.

    The stock rose 4.6 per cent to N18.33  yesterday, thereby adding to its 13 per cent advance this year. The 195-member Nigerian Stock Exchange All Share Index has gained 3.1 per cent in 2014. Ecobank’s Nigeria unit isn’t listed on the bourse.

  • Stanbic IBTC supports product devt

    Stanbic IBTC supports product devt

    Stanbic IBTC Bank has reiterated its committed to provide ‘branchless’ transactional banking and enhancing its product development strategy, the lender’s Head, Transactional Products & Services, Babatunde Macaulay has said.

    Speaking at a trade and finance forum for stakeholders, he said aside innovative banking products and services, customers have become even more sophisticated in their demand for specialised solutions. He said: “We are all witnesses to the growth of mobile telephone, the adoption of card solutions, and the drive towards financial inclusion and a cashless society.

    “They provided insights into how awareness and savvy the banking public has become. Stanbic IBTC as a leading international bank focuses on developing customised products and solutions for different segment of our markets.”

    He said the forum will be an annual event and will take on topical and relevant issues as it relates to trade finance in the country.

    Macaulay said the lender’s core value is “upholding the highest levels of integrity.” He said the lender is transparent in dealing with its customers and their transactions. “We follow the Central Bank of Nigeria guide to banker’s tariff and all modifications are discussed internally and communicated to client prior to implementation. In addition, we aim to offer competitive pricing and have an approved pricing framework within the bank. Specifically on financing, we have a proven track record of funding various initiatives and projects in different key sectors of the economy such as power, manufacturing and agriculture among others,” he said.

  • Stanbic IBTC Bank secures $100m facility for SME, energy financing

    Stanbic IBTC Bank secures $100m facility for SME, energy financing

    In its bid to support the economic growth and development of the country, Stanbic IBTC Bank has received a USD100 million Line of Credit (LOC) from the African Development Bank (AfDB) for on-lending to small and medium-size enterprises (SMEs) operating in various sectors of the Nigerian economy.

    It was gathered that part of the fund will also be applied to the financing of renewable energy and energy efficiency projects in Nigeria, in line with the requirements of the Clean Technology Fund (CTF).

    According to information made available to The Nation of the total amount, Stanbic IBTC Bank will fund SME projects in Nigeria with USD75 million, while USD25 million will be used for the funding of renewable energy and energy efficiency projects. Stanbic IBTC Bank is the first Nigerian bank to receive CTF’s approval.

    Speaking, the Chief Executive of Stanbic IBTC Bank, Mr. YinkaSanni, said that the bank will continue to partner with reputable institutions to create avenues for growth and development of the Nigerian economy. “We will continue to explore various channels of credit to empower small and medium-sized businesses. We recognise that the SME and energy sectors form an integral part of the Nigerian economy as a whole. As a result, we will remain at the forefront to empower our clients and help them achieve their business goals,” he added.

    “We appreciate the trust bestowed upon us by the African Development Bank in granting us this facility which is devoted to the funding of SMEs, energy and energy efficiency projects in Nigeria,” Sanni noted.

    The USD100 million LOC to Stanbic IBTC Bank was approved by AfDB’s board of directors on Wednesday, 26 March 2014 and April 13th 2014 in Tunis. In approving the LOC, the board of directors emphasised that the SME sector represents a strategic pillar for Nigeria’s quest to modernise and improve its economy. The AfDB highlighted financial inclusion as part of CBN’s drive to diversify the Nigerian economy.

  • Stanbic IBTC Pension chief urges early retirement planning

    Stanbic IBTC Pension chief urges early retirement planning

    A Call has been made for early retirement planning.

    The Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Dr. Demola Sogunle, made the call during the inauguration of the second phase of the firm’s interactive pre-retirement seminar in Abuja, which had the theme, Life renewed at 55 and beyond.

    According to him, the pension system, with defined contributions as its foundation, presents a path for employees to maintain a stable standard lifestyle well after retirement.

    He said: “We have taken our drive for retirement planning to Abuja, the Nigerian capital, with a call to Nigerians to understand the importance of early retirement planning. We believe that raising awareness of retirement would help companies and their employees in particular to better understand the imperative of retirement planning.

    “People are apprehensive about retirement because they do not plan for it early enough. Ideally, planning for retirement should commence from the day one takes on a first job.  It demands setting aside part of current income into a retirement savings account. Our central mission at Stanbic IBTC Pension is to help Nigerians address their retirement needs.”

    He said the event provides a platform for the firm to forge closer ties with customers and enlighten the public on developments in the industry.

    ”In addition to creating awareness about the necessity of having a retirement plan and enjoying a comfortable life post-retirement, another objective of this campaign is to further deepen the relationship with our customers by reminding them of our availability at anytime and anywhere to attend to their needs.

    “In so doing, we obtain significant feedback with which to develop solutions that address their specific needs. This will not only put them at ease; we are also motivated to go the extra mile to deliver on our promises,” Sogunle added.

  • Nimi Akinkugbe’s passion

    Nimi Akinkugbe’s passion

    NIMI Akinkugbe is the founder and Chief Executive Officer of Bestman Games Limited. In 2012, her company launched the City of Lagos edition of monopoly, the first African city edition of Hasbro’s world-famous board game.

    Before this, she enjoyed a successful banking career spanning 21 years, first at Stanbic IBTC Bank Plc where she rose to the position of General Manager and Head, Private Banking and Director of Stanbic IBTC Asset Management Limited. She subsequently spent two years at Barclays Bank as Regional Director (West Africa) for the Wealth & Investment Management Division and Chief Country Officer for Nigeria.

    But one thing Nimi is passionate about, if not working, is tending her orchid garden.

  • Mutual funds’ net assets hit N146b

    T he net value of registered mutual funds in Nigeria stands at N146 billion, according to the latest filings by collective investment schemes.

    Latest report on assets of mutual funds collated by the Securities and Exchange Commission (SEC) showed that total net asset value of mutual funds sustained modest gain to close at N145.76 billion by November 22, 2013, the current available data.

    The report indicated an increase of about N58.5 billion or 67 per cent on the net assets of mutual funds over a 16-month period, underlining a progressive trend that had seen mutual funds recovering with the bullish trend at the stock market.

    Previously reports had put net assets of mutual funds at N117.5 billion by July 26, 2013. Mutual funds’ net assets had stood at N87.27 billion on July 27, 2012.

    Mutual funds, otherwise known as collective investment schemes, are joint investment vehicles through which investors can pool funds and invest in chosen basket of securities with a view to optimize returns and reduce risks.

    Net asset value is determined by subtracting total liabilities of a fund from its total assets. The net asset value can further be divided by the total number of units of the fund to determine the unit price.

    A mutual fund is usually categorized by the class of assets that forms the primary focus of its investments. Thus, there are equity funds, money market funds, bond funds, real estate funds, ethical funds and balanced funds among others.

    According to the report, equity-based funds remain the largest and most populous investment schemes with 18 funds that accounted for N45.99 billion, about 31.6 per cent of the total net asset value of mutual funds.

    Real estate funds also sustained its second position with net assets of N43.01 billion; 29.5 per cent of total net assets of mutual funds.

    Money market funds, which invest mainly in money market instruments such as treasury bills, remained the third largest investment segment with net value of N25.22 billion. Bonds funds, with nine mutual funds, had net value of N11.48 billion.

    Further breakdown showed that investors’ values in balanced funds- mutual funds that seek to invest in a balanced mixture of equity and debt instruments; totaled N10.14 billion while the four ethical funds accounted for N7.13 billion. Umbrella funds, which are run entirely by Stanbic IBTC Asset Management, pooled N2.49 billion while the only Exchange Traded Fund (ETC) accounted for N294.15 million.

    UPDC Reit remained the largest mutual fund with net asset of N26.97 billion. Stanbic Money Market Fund was the second largest fund with net asset value of N18.95 billion. Stanbic IBTC Nigerian Equity Fund doubled as the third largest mutual fund and the largest equity fund.

    About five per cent of investors in the capital market engage in mutual funds, a paltry fraction that underlines the tendency of most retail investors to invest in the market directly.