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Fed Govt Eyeing Fresh Eurobond Funds

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bonds
  • Fed Govt Eyeing Fresh Eurobond Funds

After raising $1.5 billion from the Eurobond market this year, the Federal Government is expected to access more dollars from the Global Capital Market (GCM) before December.

Report from FBN Capital, the investment arm of FBN Holdings, says the Federal Government may return to the Eurobond market, adding that the heavily-oversubscribed Iraqi sovereign issue last week without United States guarantees was a reminder of the strength of the market.

Two commercial banks – Zenith Bank and United Bank for Africa – had also raised a combined $1 billion through Eurobond in the last six months. The Federal Government raised $1 billion in February and $500 million the following month, while Zenith Bank Plc and United Bank for Africa (UBA) Plc raised $500 million each during the periods.

The Federal Government’s $1 billion Eurobond offer, the fourth since 2011, was oversubscribed by almost 800 per cent. The over-subscription surprised many pundits. The offer, which comes at $200,000 denominations and multiples of $1,000, will mature on February 15, 2032. Citigroup Global Markets Limited and Standard Chartered Bank. Stanbic IBTC Capital are the Financial Advisers.

FBN Capital said the Central Bank of Nigeria (CBN) will also be encouraged by the early signals from the investors’ and exporters’ window (NAFEX). “Turnover from its launch in late April to July 21 totals $4.9 billion. If this market was to take off as a result, for example, of GEM funds taking the plunge, we would be approaching the required critical mass and would have to revise our expectations of MCP,” it said.

The window has impacted positively on the naira. The window, where buyers and sellers are free to agree an exchange rate, was introduced to attract foreign investors and boost the supply of dollars.

The investment and research firm said Nigeria’s gross official foreign exchange reserves increased by $550 million in July to $30.8 billion, quoting data from the CBN.

Its analysis of reserves movement showed that since the recent low at end-October, there has been an accumulation of $6.9billion. Further statistics showed there was an increase of $0.5billion since end of March, when the CBN stepped up its foreign exchange interventions under its multiple currency practices (MCP).

The investment and research firm warned that with the sharp fall in imports, the forexbuffer is comfortable. “By way of warning, we should stress that the figures provided by the CBN are gross and mask the swap transactions it has entered into with banks.The pick-up in oil production has been an obvious positive for accumulation. Officials are encouraging the view that it is back at, or close to the two million barrels per day level,” it said.

FBN Capital explained that given this cushion of reserves and the evidence that core sectors, such as manufacturing, are benefiting from the regular forex interventions, we no longer think that the CBN will be revising its forex policy this year.

The CBN has since January, spent over $8.5 billion to stablise the forex market. The Investors’ & Exporters’ FX Window records about $100 million daily turnover, with the CBN contributing about 15 per cent of the transactions.

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

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Banking Sector

Access Holdings Plc Plans $1.8 Billion Capital Raise

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Access bank

Access Holdings Plc, the parent company of Nigeria’s leading bank, Access Bank Plc, has unveiled ambitious plans for a $1.8 billion capital raise aimed at fueling its expansion efforts over the next four years.

The strategic move comes as Access sets its sights on becoming one of the largest lenders on the African continent.

During a conference call with investors in Lagos, executives outlined the company’s intention to raise $1.5 billion, or the naira equivalent, through the issuance of shares, bonds, or other financial instruments.

Also, Access aims to generate up to 365 billion naira ($257 million) by selling shares to existing investors.

Bolaji Agbede, acting group chief executive officer, clarified that the current fundraising initiative primarily involves a rights issue.

The capital infusion is earmarked to support Access’s ambitious growth plan, which commenced last year.

The bank intends to expand its footprint into new markets, including Morocco, Egypt, and the United States, as part of a broader strategy to double the share of assets outside its home market by 2027.

With operations spanning 22 countries, including the United Arab Emirates and the UK, Access Bank is positioning itself for significant international growth.

The recent appointment of Bolaji Agbede as acting group CEO follows the passing of co-founder and former CEO, Herbert Wigwe, adding a layer of significance to the bank’s future direction.

Access’s acquisition of National Bank of Kenya Ltd. underscores its commitment to expanding its presence in East Africa’s largest economy.

As Access Bank charts its course for expansion, the $1.8 billion capital raise signals its determination to seize opportunities in a rapidly evolving financial landscape, both domestically and across the African continent.

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Finance

OPEC+ Production Cuts and Geopolitical Tensions Propel Oil Price to Over $87

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Crude oil - Investors King

Oil price surged past the $87 price level on Thursday on the back of production cuts by OPEC+ nations and escalating geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, rose by $1.39 or 1.6% to $87.48 a barrel, its highest level since October 27.

OPEC+, the alliance of major oil-producing nations, has remained resolute in its commitment to curtail output, effectively tightening the supply of crude in the market.

Despite calls for increased production to alleviate soaring prices, the alliance has opted to maintain its course, further buoying the market sentiment.

Simultaneously, geopolitical tensions have added fuel to the fire. Attacks on Russia’s energy infrastructure, particularly by Ukraine, have sparked concerns over potential disruptions to the global oil supply chain.

Despite diplomatic efforts to deter such actions, the situation remains precarious, contributing to market anxieties.

Analysts suggest that these price surges may have long-term implications for global economies, particularly for oil-importing nations heavily reliant on stable energy prices.

Furthermore, the impact of rising oil prices on inflation and consumer spending patterns remains a point of contention among economists and policymakers.

As the world watches with bated breath, the trajectory of oil prices hinges on a delicate balance between geopolitical developments, OPEC+ policies, and the broader economic landscape.

For now, the $87 threshold serves as a stark reminder of the volatility and interconnectedness inherent in the global energy markets.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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