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Chief Kolawole Babalola Jamodu, Heineken Brouwerijen B.V and Uaboi G. Agbebaku Elect to Receive N1.9 Billion Final Dividend in Nigerian Breweries Shares

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Nigerian Breweries - Investors King

Chief Kolawole Babalola Jamodu, the non-executive Chairman of Nigerian Breweries Plc, Heineken Brouwerijen B.V, a substantial shareholder in Nigerian Breweries and Mr. Uaboi G. Agbebaku, Company Secretary/Legal Director, Nigerian Breweries Plc, have elected to receive their final dividends of a combined value of N1.937 billion in Nigerian Breweries shares.

The company stated in its disclosure statements filed with the Nigerian Exchange Limited.

Breaking down the statements, Chief Kolawole Babalola Jamodu elected to receive 10,361 shares of Nigerian Breweries worth N494.737.75 as his final dividend.

The non-executive chairman then bought an additional 17,000 shares of the company at an average price of N58.99 a unit on June 7th, 2021.

Mr. Uaboi G. Agbebaku received 527 shares of the company, while Heineken Brouwerijen B.V elected to receive 40,555,281 shares as its final dividend.

The option, referred to as ‘Scrip Dividend Election Scheme’, was announced in April to give qualified shareholders the opportunity to choose how to receive their final dividends in a form of new ordinary shares of Nigerian Breweries instead of cash.

The Scrip Dividend Election Scheme allows qualified shareholders to increase their stake in the company by acquiring new ordinary shares without paying transaction fees.

Shares under the Scrip Dividend Election Scheme are acquired at N47.75 a unit, “being the 10-day average closing share price of the Company’s traded shares starting on the 11th of March, 2021”

Therefore, the three qualified shareholders elected to receive 40,566,169 shares of Nigerian Breweries worth N1.94 billion as final dividends.

Chief Kolawole Babalola Jamodu is a businessperson who has been at the helm of 9 different companies and presently occupies the position of Chairman for Nutricima Ltd. and Chairman at Nigerian Breweries Plc.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Capital Market

Africa Finance Corporation Returns to Global Debt Capital Markets with Oversubscribed Five-Year US$500m Eurobond

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Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, today announced an outstanding return to the global debt capital markets, successfully issuing a US$500 million 144A/Reg S Eurobond.

The benchmark five-year Note, issued at par with a coupon of 5.55%, had a negative concession with pricing inside the Corporation’s outstanding yield curve, resulting in the tightest T-spread ever achieved by AFC on a 5-year US dollar benchmark and enabling AFC to broadly reset its yield curve in the secondary market.

The issuance generated significant interest across Europe, Asia, United States, and the Middle East, resulting in a peak book that was over two and a half times oversubscribed.

“After about three years of absence from the Eurobond market, we are proud of the overwhelmingly positive reception for this bond issuance, which underscores the global capital market’s continued confidence in AFC’s credit story, our holistic investor engagement strategy and support for our mandate to develop and finance infrastructure projects that will enable Africa’s sustainable industrialization and prosperity,” said Samaila Zubairu, President & CEO of AFC. “The significant oversubscription and success of this bond issue is an endorsement of our impressive financial performance, business strategy, conservative financial policies and our impact in leading transformative change in Africa.”

With an order book exceeding US$1.2 billion, the bond drew high-quality investors seeking exposure to investment-grade issuers like AFC.

The Corporation’s consistent A3 credit rating, upheld since 2014 and recently reaffirmed by Moody’s, with a rating outlook change from Negative to Stable, further boosted the bond’s appeal among institutional investors.

The breakdown of the order book reflected AFC’s very strong capital market access, with final allocation of Europe: 57%; North America: 23%; Middle East: 15%; and Asia: 5%.

The Eurobond was issued under AFC’s $5 billion Global Medium-Term Note (GMTN) programme. The proceeds from the bond, listed on the Euronext Dublin and the London Stock Exchange, will support AFC’s mission to drive rapid industrialisation and accelerate development impact across Africa.

Banji Fehintola, Executive Board Member and Head of Financial Services, commented: “The success of this bond signals more than just strong market access for AFC; it represents a gateway for other African issuers to follow suit. Despite market volatility, our ability to secure this level of demand affirms the resilience of AFC’s credit profile and opens new doors for Africa’s infrastructure financing.”

The issuance was coordinated by a consortium of global financial institutions, including BofA Securities, Citigroup, First Abu Dhabi Bank, and Goldman Sachs International as Global Coordinators and Joint Bookrunners, alongside Rand Merchant Bank and SMBC Nikko as Joint Bookrunners.

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Ecobank Set to Raise Capital with US Dollar-Denominated Senior Unsecured Notes Offering

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Ecobank - Investors King

Ecobank Transnational Incorporated, a leading pan-African banking group with presence in 35 African countries has announced plans to raise funds through issuance of 5-year US dollar-denominated senior unsecured notes.

In the regulatory filing obtained by Investors King, Ecobank said it has mandated Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners.

The group also appointed Renaissance Capital Africa as Financial Adviser to organise a Global Investor Call as well as a series of fixed investor calls and meetings commencing on Monday 30 September 2024.

According to the lender, this will be followed by a 144A/RegS US$-denominated benchmark 5-year senior unsecured notes offering.

The notes are expected to be rated B- by S&P and B3 by Moody’s, said Ecobank.

Ecobank Transnational Inc. is a leading independent regional banking group in West Africa and Central Africa, serving wholesale and retail customers.

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Fixed Income Market Turnover Sees 30.47% Decline Despite Bond Activity

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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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