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$1bn Eurobond Will Boost Corporate Bond Listings – FMDQ

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  • $1bn Eurobond Will Boost Corporate Bond Listings

The Federal Government’s recent listing of the $1bn Eurobond on FMDQ OTC Securities Exchange market will pave the way for domestic listing of Nigerian corporates’ Eurobonds and ignite the vision for an ‘afrodollar’ market, according to the FMDQ.

The Federal Government, through the Debt Management Office, had for the first time listed its Eurobond domestically after successfully raising $1bn from the international markets in February, and following a series of strategic engagements that spanned at least three years with the FMDQ and other stakeholders.

The event was graced by the Director-General of the DMO, Dr. Abraham Nwankwo, along with key representatives from the DMO.

The OTC Exchange also hosted the Securities and Exchange Commission; the adviser to the issuer and co-sponsor of the Eurobond on FMDQ, Stanbic IBTC Capital Limited; the arranger/dealer and co-sponsor of the issue on FMDQ, Standard Chartered Capital and Advisory Nigeria Limited.

Other parties to the listing included representatives of Citigroup Global Markets Limited and the legal advisers to the issue, Banwo & Ighodalo and Udo Udoma & Belo-Osagie, amongst others.

In her opening remarks, the FMDQ’s Chairman, Dr. Sarah Alade, who was represented by the Vice Chairman of FMDQ, Mr. Jibril Aku, congratulated the issuer on the epochal step, noting that the move by the FGN to list on a domestic exchange, in addition to listing offshore, was a welcome development, and a stance, which would rightly position the nation to maximise its potential via the debt capital market.

In line with FMDQ’s vision for the transformation of the markets, the OTC Exchange, since its debut in the Nigerian financial market landscape, already granted trading status for $1.50bn of the previously issued FGN Eurobonds and $3.15bn of Eurobonds issued by Nigerian companies.

This was to ensure price formation and provision of information transparency to protect investors’ interests.

The SEC’s Director-General, Mr. Mounir Gwarzo, represented by Mr. Adamu Sambo, in his remarks, also commended the issuer for achieving this milestone and reiterated the SEC’s commitment to continue to support the development of the nation’s debt capital markets, ensuring that integrity and efficiency would be upheld for the protection of investors.

Delivering the keynote address, Nwankwo highlighted critical milestones achieved by this transaction.

He also stated that it was the longest tenored debt security, at 15 years, issued by the FBN in the international capital markets.

The DMO DG said the wide infrastructural gap, which constrained the development efforts of the nation, could be better matched by tapping into long-term financing options, via domestic and foreign debt capital markets.

Stanbic IBTC Capital Limited, represented by Mr. Yinka Sanni, the Chief Executive Officer of Stanbic IBTC Holdings Plc, said, “This is indeed a testament to international investor confidence in Nigeria’s road map towards economic recovery and growth.

“The overwhelming success of the transaction on the whole evidences the underlying potential of Nigeria, and Stanbic IBTC Capital Limited is indeed proud to be part of this transaction. We are also pleased to sponsor the quotation of this Eurobond on FMDQ’s platform. Though Stanbic IBTC Capital Limited has sponsored many listings on FMDQ’s platform, this particular listing is very special as it represents the first ever Eurobond on the OTC Exchange,” he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Finance

Remove Face Mask When Using ATM, Banks Tell Customers

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Face Mask May Cause ATM Transaction Failure, Banks Tell Customers

Deposit Money Banks have said due to their face recognition technology, customers wearing face masks may experience service failure while using the Automated Teller Machines (ATMs).

In an email issued to customers by Fidelity Bank, the bank said why the use of face masks is important to curb the spread of COVID-19 pandemic, customers should remove when performing ATM transactions.

The bank said “Wearing of face masks is a safety and precautionary measure we must all adhere to in this period of the COVID-19 pandemic.

“However, we advise that you remove your face mask while making withdrawals or carrying out ATM transactions to allow our ATM properly recognise you.

“Fidelity Bank ATM machines have face detection features installed to curb incidences of fraudulent ATM withdrawals.

“Consequently, you may not be able to carry out any transaction if our ATMs are not able to properly recognise you. We apologise for the inconvenience that this may cause you.”

Meanwhile, Guaranty Trust Bank plc continues to ease accessibility for all customers and advised customers to protect themselves.

GTBank said, “When visiting any of our branches, kindly protect yourself by wearing a face mask at all times. It is also very important that you keep a safe distance when in a queue inside or outside the branch.

“Before visiting any of our branches, please remember that you can withdraw up to N150,000 at all our ATMs and that you can do most of your banking from the safety of your home.”

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Access Bank in Talks to Acquire Cavmont Bank

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Access Bank to Acquire Cavmont Bank in Zambia

Access Bank Plc on Wednesday announced that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (Access Bank Zambia) is in talks to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.

According to the statement signed by Mr. Sunday Ekwochi, Company Secretary, Access Bank and released on the Nigerian Stock Exchange website on Wednesday, the ongoing discussions is to acquire 100 percent of Cavmont Capital’s interest in Cavmont Bank.

However, the lender said “there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.

“The completion of a transaction would be subject to formal regulatory approvals. Access Bank will be updating the market as appropriate and in accordance with its disclosure obligations.”

The lender, therefore, advised shareholders to exercise caution when dealing in Access Bank’s securities.

Investors King Ltd note: This announcement further threw more lights on the recent purchases of Access Bank’s shares by Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank.

The CEO/MD purchased 7.532 million of Access Bank‘s shares in the last one month.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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