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Rwanda: African Development Bank Extends $84 Million in Financing to Boost Electricity Access



African Development Bank - Investors King

The Board of Directors of the African Development Bank Group has approved  $84.22 million in loans and grants to electrify nearly 80,000 rural households in south Rwanda. The project will advance the country’s goal of universal electrification and benefit small businesses and youth.

The funds comprise a loan of $36.77 million from the Bank Group’s African Development Fund and a $47.45 million ADF grant. The approval was made on 26 May.

The Transmission System Reinforcement and Last Mile Connectivity project will provide first-time electricity connection to 77,470 households to the grid, entailing the construction of 595 km of medium voltage distribution lines and 1,620 km of low voltage distribution networks in six southern Rwanda districts. The project will also see the upgrade, rehabilitation and extension of 1,720 km of low voltage network, and distribution of transformers in secondary cities with high load.

The project is expected to improve power supply reliability and stability across the country, expand electricity access and contribute to reducing greenhouse gas emissions by enabling access to clean energy. The project is also expected to bolster education by extending students access to light for study, and benefit small and medium enterprises while enhancing job creation for youth.

The project is part of the Rwanda Universal Energy Access Program (RUEAP), which seeks among other goals, to achieve universal access to electricity by 2024. It is also aligned with the country’s long-term development framework, Vision 2050.

The project also draws from two of the Bank’s High-5 strategic priorities:  Light Up and Power Africa and Improve the Quality of Life for the People of Africa.

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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Cornerstone Insurance PLC Announces Delay in Filing Q2 2024 Financial Statements




Cornerstone Insurance PLC, a prominent player in Nigeria’s insurance sector, has informed shareholders and stakeholders about a delay in filing its Unaudited Financial Statements for the second quarter (Q2) of 2024.

This delay, as disclosed by the company, stems from unforeseen challenges related to the implementation of the International Financial Reporting Standards (IFRS) 17.

The company, in a statement released today, cited that the introduction of IFRS 17 Accounting Standards necessitated significant changes in reporting methods.

These changes, in turn, disrupted the audit process and consequently delayed the preparation of the Q2 Unaudited Accounts.

Cornerstone Insurance PLC’s Audited Accounts and Financial Statements for the year ended December 31st, 2023, have already been filed and approved by the regulatory bodies.

However, the transition to IFRS 17 has posed unexpected hurdles, causing setbacks in the timely preparation of subsequent financial reports.

In response to the delay, Cornerstone Insurance PLC has sought and obtained approval from the Nigerian Exchange Limited (NGX) to extend the deadline for filing its Q2 Unaudited Financial Statements.

The company expressed regret over the inconvenience caused by this delay but assured stakeholders of its commitment to ensuring the submission and publication of the Q2 Financial Statements by August 31st, 2024.

The delay announcement comes amid efforts by regulatory authorities to enhance financial reporting standards across Nigeria’s corporate landscape.

Cornerstone Insurance PLC remains dedicated to meeting regulatory obligations while maintaining transparency and accountability in its financial disclosures.

Investors and stakeholders are advised to monitor further updates from Cornerstone Insurance PLC as the company works diligently to finalize its Q2 2024 financial reporting process.

For more information and updates, shareholders can visit Cornerstone Insurance PLC’s official website or contact the company’s investor relations department directly.

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Banking Sector

Guaranty Trust Holding Company Plc Offers 9 Billion New Ordinary Shares



GTBank -Investors King

Guaranty Trust Holding Company Plc (GTCO) has announced a new offering of 9,000,000,000 ordinary shares of 50 kobo each.

This strategic move aims to recapitalize its Nigerian banking subsidiary and expand the group’s footprint in the pension fund administration and asset management sectors.

Details of the Offering:

Issuer: Guaranty Trust Holding Company Plc
Lead Issuing House: Stanbic IBTC Capital Limited
Joint Issuing Houses: Absa Capital Markets Nigeria Limited, FCMB Capital Markets Limited, and Vetiva Advisory Services Limited
Offer Price: ₦44.50 per Offer Share
Total Share Capital: ₦14,715,589,612, divided into 29,431,179,224 ordinary shares of 50 kobo each

Purpose of the Offering:

After deducting the costs and expenses of the offer, estimated at ₦8,010,000,000 (2% of gross proceeds), the net proceeds of ₦392,490,000,000 will be allocated as follows:

  1. Recapitalisation of GTBank Nigeria: ₦370 billion (94.3% of net proceeds) with an estimated completion period of six months.
  2. Growth and Expansion of the Group: ₦22.49 billion (5.7% of net proceeds) for acquisitions in pension fund administration and asset management businesses, with an estimated completion period of 24 months.

Offer Structure and Allocation:

The offer, structured as an Offer for Subscription, will be split equally between institutional investors and retail investors, with each group allocated 4,500,000,000 shares. The issuer retains the right to adjust this allocation based on demand from each investor class.

Key Dates:

  • Opening Date: Monday, 15 July 2024
  • Closing Date: Monday, 12 August 2024

Subscription and Payment:

The minimum subscription is set at 100 Offer Shares, with multiples of 10 thereafter. Payment is required in full upon application.

Market Capitalisation:

  • Pre-Offer Market Capitalisation: ₦1,309,687,475,468
  • Post-Offer Market Capitalisation (assuming full subscription): ₦1,710,187,475,468

Listing and Quotation:

GTCO’s entire issued and paid-up share capital is listed on the Nigerian Exchange (NGX). An application has been submitted to the NGX Board for the listing of the new shares.

Allotment and Status:

The new ordinary shares will rank equally with the existing shares. The allotment will follow SEC rules, ensuring all investors receive the minimum application in full, with any remaining balance allotted according to the determined allocation split.

This offering represents a significant step for GTCO in strengthening its financial base and expanding its business operations, reflecting the company’s commitment to sustained growth and value creation for its shareholders.

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Nigerian Banks Boost Private Sector Support by 74.98% in Early 2024



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Nigerian banks have significantly increased their support for the private sector with loans and other forms of credit to the tune of N375.78 trillion in the first five months of 2024.

This represents a 74.98% rise from the N214.76 trillion recorded in the same period last year, according to the Central Bank of Nigeria (CBN).

The data from the CBN highlights a consistent growth in credit to the private sector, underscoring the banking sector’s critical role in driving economic stability and expansion.

This surge in private sector support includes loans, trade credits, and other account receivables, illustrating a robust and dynamic banking sector committed to bolstering the national economic agenda.

A closer examination of the figures reveals that credit to the private sector climbed by 65.9%, or N29.52 trillion, to reach N74.31 trillion in May 2024, compared to N44.79 trillion in the corresponding period of 2023.

The monthly breakdown showed that April’s credit stood at N72.92 trillion, while March and February recorded N71.21 trillion and N80.86 trillion, respectively.

February’s figures marked the highest contribution within this period, followed closely by January’s N76.48 trillion.

This significant increase in private sector credit comes on the heels of a recent report on capital importation, indicating that Nigerian banks are attracting substantial foreign investment.

According to the National Bureau of Statistics, capital importation into Nigeria rose by 2.62% to $1.09 billion in the fourth quarter of 2023, up from $1.06 billion in the previous year.

Leading this charge were Stanbic IBTC Bank, Citibank Nigeria, and Rand Merchant Bank, which facilitated the highest levels of capital importation.

The production and manufacturing sector emerged as the largest beneficiary of capital inflow, receiving $450.11 million, or 41.35% of total capital imported in Q4 2023.

The banking sector followed with $283.30 million (26.03%), and the financing sector with $135.59 million (12.46%).

Financial experts at Cordros Capital have attributed this upward trend to the CBN’s reinforcement of the loans-to-deposits macro-prudential ratio for Deposit Money Banks.

This regulation encourages banks to maintain a healthy balance between deposits and loans, fostering a stable financial environment conducive to lending.

An International Monetary Fund (IMF) study on bank balance sheet strength during financial crises found that banks with robust balance sheets were better positioned to maintain lending during economic downturns.

This finding underscores the importance of strong capital buffers, which the CBN Governor, Dr. Olayemi Cardoso, has emphasized in the ongoing recapitalization efforts aimed at strengthening Nigerian banks to support the country’s ambitious $1 trillion economic target.

Dr. Cardoso stated, “Additional capital not only provides a substantial buffer for banks against potential economic challenges but also enhances their capability to support massive economic growth and compete globally. The ongoing recapitalization will empower our banks to drive sustainable growth and achieve our national economic goals.”

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