The Securities and Exchange Commission is seeking to collaborate with the Ministry of Mines and Steel Development to address some of the challenges faced by the solid minerals sector through the Commodities Exchanges.
This was stated by Director General of the SEC, Mr. Lamido Yuguda during a meeting with the Minister of State for Solid Mineral, Dr. Uchechukwu Ogah, in Abuja weekend.
Yuguda disclosed that the core function of a Commodity Exchange is to create markets by providing a setting where multiple buyers and sellers can trade commodity-linked contracts thereby reducing the costs associated with finding a buyer or seller to whom to transact. Other benefits of a Commodity Exchange include, improved quality, standardization, traceability (tracking the source of every solid mineral), price discovery, price risk management, accepted dispute resolution procedures and facilitating provision of commodity financing.
He said in the last couple of years however, Nigeria has been confronted by significant threats which include, structural fiscal challenges underlined by heavy reliance on crude oil for revenue, youth unemployment and increasing insecurity. This worrisome situation he said, has been exacerbated by the Covid-19 pandemic.
According to the SEC Boss, “In a bid to address these challenges, the Federal Government is aggressively growing its agricultural and solid minerals sectors as a catalyst for economic growth and diversification. To complement government efforts and deepen the capital market, the Commission set up a market-wide technical committee to undertake a holistic assessment of the existing framework of the Nigeria Commodity Ecosystem.
“The Committee grouped its recommendations in phases: In the first phase, the objective is to ensure food sufficiency and security, price discovery and market development while in the second phase, the focus would include developing strong trades in export commodities. The third phase should see the introduction of solid minerals, energy and derivatives while the last phase should be geared towards ensuring a strong international presence in the local exchanges.
“In furtherance of this objective, the Commission is actively promoting the development of the commodities market especially in areas of Nigeria’s comparative advantage such as solid minerals and agriculture”.
Yuguda stated that the Commission is currently implementing the 10-year Nigerian capital market master plan which was launched in 2015. It aims to: position the capital market to play a pivotal role in the emergence of Nigeria as a top 20 global economy; have a highly competitive market that engenders best practice, innovation and efficiency; and operate a capital market that combines all the elements needed to actualize Nigeria’s developmental aspirations.
In his remarks, the Minister of State in the Ministry, Dr. Uchechukwu Ogah, described solid minerals as a thing of the future and expressed the belief that in the near future it could assist greatly in the development of the economy of the country.
He said, “ We are moving away from oil because we believe that mineral is a thing of the future and the President has done a lot in initiating projects that are helping us to explore some of the few minerals that are of high value in the country.
“Apart from that, the President has equally initiated what we call Presidential Artisanal Gold Mining initiative which led to the presentation of the first locally mined artisanal miner’s gold bar to Mr. President. The proposal is that we are looking at a good policy where these golds would be explored, produced and if possible refined in Nigeria so that we can use it to shore up our reserve and to ensure that the depreciation on our Naira is controlled when we have a good number of raw resources to shore-up our reserve.
“So we believe that there is a lot we can do together that will be mutually beneficial to both parties and our country. I believe that both of us can work purposefully to grow the sector collectively for the interest of the nation”.
Ogah described the sector as a huge one that could help the country grow its, economy, as well as shore up its external reserve and commended the SEC on the collaborative offer.
Ecobank Transnational Incorporated Formally Opens the Market at the London Stock Exchange After Successfully Listing its US$350 Million Sustainability Bond on the LSE
Ecobank Transnational Incorporated (“ETI”), the Lomé based parent company of the Ecobank Group, was hosted today by the London Stock Exchange for a market opening virtual ceremony to celebrate the successful listing of the Tier 2 Sustainability Notes on the London Stock Exchange (LSE) main market. This represents the first ever Tier 2 Sustainability Notes by a financial institution in Sub-Saharan Africa.
This Tier 2 issuance is the first to have a Basel III-compliant 10NC5 structure outside of South Africa in 144A/RegS format and is now 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% with interest payable semi-annually in arrears.
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://bit.ly/3j4xrlb on which DNV issued a Second Party Opinion.
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.
Ade Ayeyemi, Group Chief Executive Officer of ETI, stated: “The strong global interest in our issuance reflects investors’ confidence in Ecobank’s strategy and our commitment to sustainable financing. We thank the LSE for hosting ETI today and look forward to value creation for all our stakeholders. ”.
The Joint Lead Managers & Bookrunners in the transaction were Citi, Mashreq, Renaissance Capital and Standard Chartered Bank.
Lafarge Africa Redeems N33.6 Billion Matured Bond Due on June 15, 2021
Lafarge Africa Plc (“the Company”) announces the redemption of its matured N33.6 Billion Bond due on June 15, 2021.
The Company registered a N100 Billion Bond issuance programme in June 2016, out of which the sum of N60 Billion was issued in Series 1 and 2 of the programme. The matured Series 1 Bond was issued on June 10, 2016 with a 3-year tenor and at a fixed coupon of 14.25%, which has been repaid, while the matured Series 2 Bond issued on June 15, 2016 with a 5-year tenor at a fixed tenor of 14.75% has now been repaid.
The Company leveraging on its performance and its recently concluded Management strategic plans to systematically deleverage the Company, has redeemed the Series 2 Bond from internally generated cashflow.
In view of this, the Company has no outstanding issued Bond under the N100 Billion Bond issuance Programme.
FMDQ Exchange Admits Mixta Real Estate Commercial Paper
The Nigerian commercial paper (CP) market continues to demonstrate resilience and consistency in providing succour to corporates across diverse sectors by offering a viable platform for these institutions to raise finance to fund their capital requirements.
As the leading organiser for the Nigerian debt capital market (DCM) and in its role as a catalyst for infrastructure development, FMDQ Securities Exchange Limited has approved the quotation of the Mixta Real Estate Plc N1.02 billion Series 36 Commercial Paper under its N20.00 billion Commercial Paper Issuance Programme.
Mixta Real Estate Plc, a subsidiary of Mixta Africa, is a leading real estate development company in Nigeria with a strong track record, diverse real estate portfolio, and operations spanning the residential, commercial, and retail sectors of the Nigerian real estate industry.
According to FMDQ, the admission of the CP, which was sponsored by FBNQuest Merchant Bank, serves to re-affirm FMDQ Exchange’s efforts in boosting investor confidence and reinventing the Nigerian CP market.
“As an exchange positioned to bring about revolutionary changes in the Nigerian capital market, FMDQ Exchange, through the collective efforts of its varied stakeholders shall continue to deliver value-adding initiatives, ranging from the continuous upgrade of its listings and quotations service, to product and market innovations, amongst others.
“With a vision to be “the most attractive Exchange in Africa by 2025”, and a mission to “collaborate to empower markets for economic progress towards delivering prosperity,” FMDQ Exchange is committed to articulating and pioneering, innovative ways to improve and make the Nigerian financial markets globally competitive, operationally excellent, liquid, and diverse,” it said.
FMDQ Group is Africa’s first vertically integrated financial market infrastructure group, strategically positioned to provide registration, listing & quotation services, seamless trading, clearing, settlement, risk management, and depository of financial market transactions, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited and FMDQ Depository Limited.
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