The Nigerian foreign exchange reserves increased by $595 million to $26.20 billion, according to the latest data from the Central Bank of Nigeria. This is its highest in a month.
This was after the Naira traded at a record low of 414 against the US dollar on Sunday at the parallel market before retreating to 412 on Monday.
According to Mr. Sewa Wusu, the Head of Research and Investment Advisory at SCM Capital Limited, a lot factors could lead to the increase in the external reserves.
He explained “The increase in international crude oil prices penultimate week on the heels of production freeze expectations from OPEC may have raised the external reserves position. Although we are currently witnessing production cut due to the militants’ vandalism, the lag effect of this crude price increases may have raised the reserves.”
External reserves which stood at $26.21 billion as of July 28, declined to $25.6 billion by August 24, the CBN data showed.
The decline was largely due to the efforts of the CBN to boost liquidity at the interbank market and support the ailing naira by selling dollar to ease the economic gridlock created by the forex scarcity.
However, the reserves had plunged by over 10 percent from a year ago when it was $29.7 billion.
Wema Bank To Rewards ALAT Users for Referrals
According to the statement released by the Wema Bank, titled “Wema Bank Rewards ALAT Users for Referrals throughout 2021”. The Bank said that ALAT users nationwide with active accounts who have done at least three transactions in the last six months and also referred other users will be rewarded with cash prizes.
The statement reads; “At the beginning of this year, ALAT launched its earn on the go campaign, allowing members of its Trybe to not only earn money on the app but also stand a chance to win one of the three grand prizes at the end of the year.
“For the duration of this campaign, all ALAT users with an active account, who have carried out at least 3 transactions in the last 6 months will be given a unique referral code.
“This code is used to track the number of referrals made from a single account, whereby a customer receives one thousand Naira for every successful invitation to join the ALAT Trybe.
“While referrals are ongoing, we will be tracking all our users’ progress and by December reward the top three referrers with prizes worth over seven hundred thousand Naira.
“The first-place winner will receive the grand prize worth N350,000, while the second place and first runner up, will get a prize worth N200,000.00, and finally in the user that makes it to third place will be giving a prize worth N150,000.00.
“To reward the efforts of all participating users, a quarterly raffle draw will be held twice in the year, where twenty people from the list of top hundred referrers will stand a chance to win Ten thousand Naira each”.
Alat by Wema was founded in 2018 and is the first fully Digital Bank in Nigeria, providing banking services through our Andriod, iOS, and Web apps to over a hundred thousand users in Nigeria.
Unity Bank Forecasts N380.815 Million Profit for Q3 2021
Unity Bank Plc on Friday predicted profit after tax of N380.815 million for the third quarter (Q3) ending September 30, 2021.
This represents a decrease of N162.3 million year-on-year when compared to the N543.14 million recorded in the same quarter of 2020.
The lender projected gross earnings of N10.890 billion for the quarter while interest income was expected to hit N7.204 billion.
Interest expense was estimated at N5.351 billion for the period. Unity Bank puts net revenue from funds at N1.853 billion in Q3 2021.
Other incomes were expected at N3.686 billion and impairment for credit loss was projected at N885.663 million in the quarter under review.
The bank forecasts net operating income at N4.653 billion and puts operating expenses at N4.237 billion.
Profit before tax was projected to hit N416.191 million in the quarter, below the N590.4 million achieved in the same quarter of 2020.
Unity Bank’s Cashflow Projections for the Third Quarter Ending September 30, 2021 (₦)
Net cash provided by operating activities 1,720,815,055
Net cash flow provided by/(used) in investing activities (260,034,996,531)
Net cash flow from operating and investing activities (258,314,181,476)
Net cash used in financing activities 258,694,996,531
Net increase/(decrease) in cash and cash equivalents 380,815,055
Cash and cash equivalents, beginning of period 107,494,314,017
Cash and cash equivalents, end of period 107,875,129,072
Ecobank Raises US$350 Million Tier 2 Sustainability Notes
Ecobank Transnational Incorporated (“ETI”), a Lomé based parent company of the Ecobank Group listed on Nigerian Exchange Limited, announced it has successful raised US$350 million Tier 2 Sustainability Notes.
This represents the first ever Tier 2 Sustainability Notes by any financial institution in Africa.
The lender disclosed in a statement signed by Adenike Laoye, Group Head Corporate Communications/Chief of Staff to the Group Chief Executive Officer, Ecobank.
According to the bank, the Tier 2 issuance is the first to have a Basel III-compliant 10NCS structure outside of South Africa in 144A/RegS format and will be listed on the main market of the London Stock Exchange. The bond, which matures in June 2031, has a call option in June 2026 and was issued with a coupon of 8.75 percent with interest payable semi-annually in arrears.
The lender said an equivalent amount of the net proceeds from the notes will be used by ETI to finance or re-finance, new or existing eligible assets as described in ETI’s Sustainable Finance Framework, available at https://ecobank.com/group/sustainability-financeframework on which DNV has issued a Second Party Opinion.
Speaking on the issuance, Ade Ayeyemi, Group Chief Executive Officer of ETI, stated: “This is a landmark issue for Ecobank, and indeed the success of this first Sustainable Tier 2 issuance is testament to our clear strategy, solid positioning across the pan-African banking space as well as our deliberate and long term focus on sustainable initiatives. We are particularly pleased with the diverse orderbook which reflects the confidence investors have in Ecobank to deliver on our commitment to sustainable financing.”
Investor interest for this Sophomore Eurobond issue was global, including United Kingdom, United States, Europe, the Middle East, Asia and Africa, achieving a 3.6x oversubscribed orderbook, of over US$1.3 billion at its peak.
The transaction was anchored at the start by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), a Dutch development bank, with a committed US$50 million order. The notes saw significant demand from asset managers from Europe on opening (including the UK) demonstrated by a number of large tickets.
Overall, investor interest was global including accounts from the United States, the Middle East, Africa and Asia.
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