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Seven States, Fidelity, Others Raise N141bn Bond

Published

7 years ago

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Fidelity Bank- Investors King

Seven states of the federation including Plateau and Oyo raised a total of N60.95bn through the bond market in 2015, the Debt Management Office said on Tuesday.

It also disclosed in a report of its activities in 2015 that corporate organisations including Fidelity Bank and FCMB Financing SPV Plc raised N81.55bn through the market within the year.

Statistics showed that Plateau State raised a total of N28.2bn from the market while Oyo State raised a total of N4.8bn from the market.

Other states that patronised the bond market in 2015 included Gombe, N5bn; Kogi, N3bn; Benue, N4.95bn; Zamfara, N7bn; and Cross River, N8bn.

The report said, “The number of states that accessed the domestic bonds market in 2015 was relatively high compared to 2014. Seven states raised funds from the capital market in 2015, with a total face value of N60.95bn, which represented a huge increase from the N15bin recorded in 2014.

“Plateau State alone accounted for 46.27 per cent of the total bonds issued by the seven states in 2015.”

Five corporate organisations, on the other hand, raised a total of N81.55bn from the bond market in the same year, the report said.

The corporate organisations are Fidelity Bank Plc, N30bn; Nigerian Mortgage Refinancing Company, N8bn; Transcorp Hotels Plc, N19.76bn; FCMB Financing SPV Plc, N23.19bn; and C&I Leasing Plc, N600m.

The report said, “The corporate bonds segment of the domestic bonds market was relatively active in 2015, compared to 2014 in terms of new issuances.

“The total face value of issuances by five corporates stood at N81.55bn, compared to the total face value of N48.04bn issued by four corporates in 2014.

“The debt issue by Fidelity Bank Plc accounted for 36.79 per cent of the total corporate bonds issuances in 2015.”

The report also indicated that the level of trading activities in the FGN Bonds market increased in 2015, compared to 2014, adding that the total face value increased from N7.39tn in 2014 to N9.49tn in 2015, an increase of 28.48 per cent.

It said, “The consideration also increased from N8.07tn to N9.58tn or by 18.75 per cent. Number of deals grew from 45,890 to 46,864 in the same period.

“In 2015, trading activities were boosted as most of the challenges that had arisen from adopting the CBN’s Scripless Securities Settlement System as the new settlement vehicle for the FGN Bonds were addressed and most dealers had become conversant with the system.”

The report added that the use of the FMDQ OTC E-Bond Platform, which became fully operational in March 2014 enabled dealers to trade in a more professional manner, with enhanced price discovery and transparency in the FGN Bond market.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Merger and Acquisition

Oppenheimer Acquires Full Control of Nigeria’s GZ Industries in Bet on Economic Revival

Published

19 hours ago

on

December 1, 2023

By

GZ Industries Limited

Jonathan Oppenheimer, scion of South African billionaire Nicky Oppenheimer, has secured full ownership of Nigeria’s largest beverage can manufacturer, GZ Industries Ltd.

Oppenheimer Partners Ltd. concluded the acquisition of the remaining shares from Affirma Capital, formerly known as Standard Chartered Private Equity.

While financial details were not disclosed, the private equity firm previously held a 37.5% stake in GZ Industries, a major supplier of cans to global brands such as Coca-Cola.

The move positions Jonathan Oppenheimer to play a pivotal role in shaping GZI’s growth trajectory in sub-Saharan Africa.

With urban, educated adults in the region leading global sugary drink consumption with 12.4 servings per week, GZI’s strategic importance in meeting this demand is underscored.

Oppenheimer Partners initially invested in GZI in 2018, coinciding with the establishment of a factory in South Africa, where the company now commands a 20% market share.

GZI, a producer of 3 billion aluminum cans annually in Africa, competes with Nampak Ltd., which is currently undergoing restructuring efforts.

Affirma Capital’s exit from GZI aligns with its broader investment strategy in Africa, having invested in 11 companies since 2008, with eight successful exits returning over $800 million to investors.

Jonathan Oppenheimer, part of the wealthy Oppenheimer family, inherits a substantial role in GZ Industries, further diversifying the family’s portfolio, which amassed significant wealth through the 2012 sale of their stake in De Beers for about $5 billion.

The family’s combined net worth is estimated at $9.4 billion, according to the Bloomberg Billionaires Index.

As Nigeria’s President Bola Tinubu outlines ambitious spending plans for 2024, the acquisition positions GZI strategically in a potentially thriving economic landscape.

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Merger and Acquisition

Equinor Concludes Sale of Stake in Chevron’s Agbami Oil Field to Chappal Energies

Published

2 days ago

on

November 30, 2023

By

Chevron

Norwegian energy company Equinor has successfully finalized the sale of its 20.21 per cent stake in Chevron’s Agbami oil field.

The transaction, including Equinor’s 53.85 per cent ownership in Oil Mining License 128, was completed with Nigerian-owned Chappal Energies. The financial details of the deal have not been disclosed.

Equinor, a longstanding player in Nigeria’s energy sector since 1992, views this divestment as a strategic move in line with its broader international oil and gas portfolio optimization strategy.

Nina Koch, Equinor’s Senior Vice President for Africa Operations, commented on the transaction, stating, “This transaction realizes value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas.”

Chappal Energies, the acquiring entity, is a committed Nigerian-owned energy company with ambitions to further develop the assets, contributing significantly to the Nigerian economy.

The completion of the transaction remains contingent on various conditions, including regulatory and contractual approvals.

Equinor’s exit from the Agbami oil field signifies a shift in its global asset portfolio management, enabling the company to concentrate on its core operational areas.

The deal aligns with the broader industry dynamics and demonstrates Equinor’s commitment to strategic alignment and operational efficiency.

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Company News

Dangote Petroleum Refinery Set to Make History with Public Listing on NGX

Published

4 days ago

on

November 28, 2023

By

Dangote refinery

Aliko Dangote, the president and chief executive of Dangote Industries Limited, has announced plans to publicly list the subsidiary, Dangote Petroleum Refinery, on the Nigerian Exchange Limited (NGX).

Dangote expressed confidence in overcoming previous challenges related to crude oil supply, stating, “We have resolved all the issues with crude oil supply. We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”

The refinery, poised to commence operations in December, holds the promise of significant contributions to the Nigerian economy.

At full capacity, it is expected to produce 650,000 barrels of oil per day, with an initial rollout of 540,000 barrels daily.

The facility will produce 27 million liters of diesel, 11 million liters of kerosene, and nine million liters of jet fuel, sourcing crude from various Nigerian producers, including the state oil company.

A finalized deal for the delivery of the first cargo of approximately six million barrels next month signals the imminent realization of this ambitious project.

The refinery’s impact is anticipated to extend beyond the oil and gas sector, with projections suggesting significant cost savings for Nigeria by eliminating the need to import petrol.

Industry operators and government officials are optimistic about the transformative potential of the Dangote Refinery.

Akinwumi Adesina, President of the African Development Bank (AfDB), lauded the project as the best-industrialized initiative for Africa, projecting substantial savings for Nigeria and the continent as a whole.

As Nigeria’s largest refinery project, the facility has garnered praise from the Lagos Chamber of Commerce and Industry (LCCI).

Dr. Chinyere Almona, the LCCI Director-General, commended the visionary efforts of Aliko Dangote and the supportive federal government, emphasizing the refinery’s capacity to meet Nigeria’s refined petroleum product needs.

The impending listing on the NGX positions Dangote Petroleum Refinery as a catalyst for economic growth, energy security, and self-sufficiency in Nigeria and beyond.

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