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Capital Market

Govts, Businesses Raise N4.6 Trillion from Capital Market in Five months



capital market - Investors King

Nigerian governments and companies have raised some N4.6 trillion in new capital from the capital market so far this year, already more than 100 per cent above the total capital raising recorded for the whole of 2020.

Preliminary report at the weekend at the Nigerian Exchange (NGX) Limited indicated that the Exchange has facilitated more than N4.6 trillion so far this year. The capital raising cut across several asset classes including debts and equities and from several issuers including the Federal Government, state governments and companies.

The Federal Government has sustained the monthly issuance of its Federal Government of Nigeria Savings Bonds (FGNSBs) in addition to other intermittent debt issuances. The government, at the weekend, listed two tranches of savings bonds worth N700.5 million on the NGX. The savings bonds were issued in May.

A breakdown of the fund-raising entities showed five broad categories – Federal Government, state governments, quoted companies, fund management finds and special purpose vehicles (SPVs).

Also, a breakdown of the capital raising by issuers showed that the Federal Government accounted for the largest part of the new issues.

Other public sector issuers included Lagos State and Kogi State governments. Corporate issuers included BUA Cement, Fidelity Bank, Flour Mills of Nigeria, Transcorp Hotel and Sunu Assurances Plc.

The report also showed many maiden issues by companies, including debt issuances by Me cure Industries and Emzor Pharmaceuticals.

The latest report further illustrated that the capital market has continued to provide critical funding in debts and equities to governments and companies, after the market braced the COVID-19 lockdowns and disruptions in 2020 to pool more than N2 trillion funding.

Last year, issuers or fund-raising entities had included sovereign issuances by the Federal Government, sub-national issuances by the Ondo State Government, debts and equities raising by several quoted companies, including Dangote Cement, Flour Mills of Nigeria, Consolidated Hallmark Insurance, Coronation Insurance, formerly Wapic Insurance, International Breweries and Golden Guinea Breweries.

Other corporate issuers in 2020 included Abbey Mortgage Bank, C & I Leasing, UACN Property Development Company (UPDC), United Capital, AIICO Insurance, Red Star Express and Interswitch Africa One. Investment management companies such as ARM Investment Managers and Meristem Wealth Management also launched new collective investment schemes.

The market had, particularly, provided innovative finance through SPVs to support key infrastructural development and corporate restructuring. These included issuances such as Axxela Funding 1, LAPO MFB SPV, FBNQ MB Funding SPV and Primero BRT Securitisation SPV.

Despite the pandemic, the market has seen many landmark transactions since 2020, including maiden bond issue by Nigeria’s largest quoted company and Sub-Saharan Africa’s largest cement company, which floated a N100 billion bond, the largest single corporate bond issue in the capital market.

Also, International Breweries, the Nigerian subsidiary of Anheuser-Busch InBev (AB InBev), had in 2020 raised N164.39 billion through a rights issue, reported to be the largest right issue and a major indirect capital injection by a foreign investor in a Nigerian company.

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

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Capital Market

Fixed Income Market Turnover Sees 30.47% Decline Despite Bond Activity



Bonds- Investors King

In June 2024, the FMDQ Securities Exchange reported a 30.47% decline in the fixed-income market turnover from the previous month.

Despite this downturn, bond trading showed resilience, particularly in the Other Bonds category, which saw a 60.51% increase.

The overall turnover for fixed income products, including FGN Bonds and T-Bills, fell to N7.72 trillion.

This decrease was attributed to lower trading volumes across all major categories, although bond activity remained a bright spot.

Trading intensity for FGN Bonds and T-Bills slightly decreased, reflecting reduced investor activity.

However, T-Bills with maturities between six months and a year, alongside FGN Bonds with terms between five and ten years, were the most traded, accounting for a significant portion of the market turnover.

The sovereign yield curve continued its inversion trend, with real yields staying negative due to inflation outpacing policy interest rates.

The money market also experienced a decline, with turnover dropping by 34.50% to N8.22 trillion. Repos and unsecured transactions were primarily responsible for this decrease.

Conversely, the FX derivatives market saw growth, rising by 43.20% due to increased FX swap activities, despite a downturn in FX forwards.

These fluctuations highlight the ongoing challenges in Nigeria’s financial markets, with inflation and currency depreciation posing significant hurdles.

The decline in turnover suggests cautious investor sentiment amidst an uncertain economic landscape.

Despite these challenges, certain segments like bond trading and FX derivatives continue to show potential, offering avenues for strategic investment and market stability.

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Capital Market

Nigeria Leads Africa in Private Equity Deals, Records $2.59 Billion in Q1 2024




Nigeria has emerged as the epicenter of private equity activity across Africa as $2.59 billion worth of deals were done in the first quarter of 2024.

This surge represents a 321.8% increase compared to the same period last year, indicating Nigeria’s robust potential amidst global economic shifts.

The data, analyzed by DealMakers Africa, a leading authority on mergers, acquisitions, and corporate finance in the continent, revealed Nigeria’s pivotal role in driving regional investment trends.

According to the report, this surge in private equity investments was predominantly fueled by strategic transactions in the energy sector and the burgeoning educational technology (edtech) industry.

Nigeria’s ascendancy in private equity deals marks a reversal from previous trends, where in Q1 2023, other African nations like Zimbabwe had momentarily surpassed it in mergers and acquisitions value.

This year, however, Nigeria not only reclaimed its leading position but also outpaced other significant economies in the region, with Zambia, Morocco, Kenya, and Egypt following with notable but comparatively lower investment figures.

Among the standout deals contributing to Nigeria’s stellar performance, Shell’s $2.4 billion divestment of its onshore oil and gas subsidiary to Renaissance Africa Energy stands as the largest transaction in the quarter.

This landmark deal not only bolstered Nigeria’s overall investment portfolio but also signaled continued interest and confidence from global investors in the country’s energy sector potential.

Commenting on the findings, analysts highlight Nigeria’s strategic advantages, including a sizable market, abundant natural resources, and a dynamic entrepreneurial ecosystem that continues to attract substantial foreign and domestic capital.

The report also emphasizes West Africa’s prominence in regional investments, with Nigeria at its core, recording a cumulative $2.6 billion in deal value across various sectors.

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Capital Market

Stanbic IBTC Holdings to Raise N550bn Through Debt Issuance, Rights Issue



Stanbic IBTC -

Stanbic IBTC Holdings, one of Nigeria’s leading financial institutions, is set to raise a total of N550 billion through a combination of debt issuance and a rights issue.

This ambitious move comes amidst the backdrop of regulatory changes and the need for financial institutions to bolster their capital bases to meet new requirements set by the Central Bank of Nigeria (CBN).

The announcement was made in a notice of the company’s annual general meeting filed with the Nigerian Exchange Limited.

According to the disclosure, Stanbic IBTC Holdings plans to establish a debt issuance program with a capacity of up to N400 billion.

This program will enable the company to issue various forms of debt securities, including senior unsecured or secured, subordinated, convertible, preferred, equity-linked, or other forms of debt obligations.

Also, the board of Stanbic IBTC Holdings is seeking shareholder approval to raise additional equity capital of up to N150 billion through a rights issue or offer for subscription.

Shareholders will also vote on increasing the company’s issued and paid-up share capital to accommodate the proposed capital raise.

Stanbic IBTC Holdings has been a key player in Nigeria’s financial landscape, with a strong track record of performance and a diverse range of financial services.

The proposed capital raise is expected to provide the company with the necessary resources to pursue growth opportunities, enhance its market position, and continue delivering value to shareholders and stakeholders alike.

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