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SEC Holds Second Capital Market Committee Meeting In 2021

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Nigeria SEC- Investors king

The Securities and Exchange Commission (SEC) is set to hold the Second Capital Market Committee (CMC) meeting for the year from Thursday, August 12 to Friday 13, 2021.

The meeting is scheduled to hold virtually through Zoom with key stakeholders in the capital market meeting on August 12, while the usual interface with the press, on the outcome of the CMC meeting, will take place on Friday, August 13.

According to the SEC, “Attendance to both events is strictly by invitation. Invited participants will be sent unique links with which to join the meeting”.

The CMC was primarily established to serve as a medium for the exchange of ideas among market stakeholders as well as an avenue for providing feedback to the SEC on how to continuously address challenges, improve market operations and enhance the regulatory framework. It is an industry-wide committee comprising members of the SEC, representatives of capital market operators and trade groups and other stakeholders. The CMC meets every quarter.

During the meeting, issues bordering on implementation of the Ten Year Capital Market Master Plan, implementation of the Fintech Roadmap, the commodities trading ecosystem roadmap as well as other salient matters relating to the capital market and the economy would be discussed.

Recall that the Commission had unveiled the ten-year Capital Market Master Plan (CMMP) in November 2014 and has continued to implement the initiatives, which are designed to reposition the Nigerian Capital Market as an attractive investment destination and a critical facilitator of capital formation for the accelerated growth and development of the Nigerian economy.

Some of the CMMP initiatives that have been implemented include; Direct Cash Settlement, regularisation of multiple subscriptions, dematerialization of share certificates, and the introduction of the e-Dividend Management System. The CMMP initiatives have helped in promoting transparency, protecting investors and enhancing market confidence.

The objectives of the CMMP are also in consonance with the Federal Government’s economic strategy, focused on encouraging a private sector-led economy to drive inclusive growth.

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Capital Market

Royal Exchange Plc Rights Issue Falls Short, Closes at 75.83%”

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Royal Exchange Plc

Royal Exchange Plc, a leading player in life assurance, health insurance, and credit financing, recently concluded its rights issue with a subscription rate of 75.83%, indicating a shortfall in investor uptake.

The rights issue aimed at raising capital through the issuance of additional ordinary shares saw only a portion of the offered shares subscribed by existing shareholders.

According to the weekly report of the Nigerian Exchange Limited, an additional 3,121,328,866 ordinary shares of 50 kobo each were listed on the market, resulting from the completion of Royal Exchange’s rights issue.

This falls short of the total intended issuance of 4,116,296,059 ordinary shares at a price of N0.50 per share.

Despite the lower-than-expected subscription rate, Royal Exchange remains optimistic about its future prospects.

The company’s unaudited 2023 report revealed significant growth in earned income, soaring by 253% to N882.32 million compared to the previous year.

This boost in earnings was attributed to increases in net interest income and profits from investments in associates, totaling N591.55 million.

Also, Royal Exchange reported a profit of N46.09 million for the year 2023, a stark turnaround from the loss of N150.47 million recorded in 2022.

The company’s restructuring efforts, with a focus on asset management, have contributed to its improved financial performance.

Despite the shortfall in its rights issue, Royal Exchange Plc remains committed to its growth trajectory, leveraging its strengthened financial position to capitalize on emerging opportunities in the insurance and financial services sectors.

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Capital Market

Fast Credit CEO Emeka Iloelunachi Proudly Announces Seamless Redemption of Series 2 Commercial Paper

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capital market - Investors King

Fast Credit Limited’s Chief Executive Officer, Emeka Iloelunachi, proudly announced the successful redemption of the Series 2 Commercial Paper Issuance in a statement released on Monday.

This achievement marks another significant milestone for the financial institution, reinforcing its reputation for fiscal resilience and adherence to sound financial practices.

The Series 2 Commercial Paper, a pivotal element in Fast Credit’s diversified financing strategy, was efficiently redeemed, underlining the company’s meticulous financial planning and disciplined execution.

The payout, executed seamlessly on November 30, reflects the company’s dedication to transparency and accountability.

Fast Credit has consistently demonstrated its commitment to meeting financial obligations punctually, fostering trust and confidence among investors and stakeholders alike.

Investors who participated in the Series 2 Commercial Paper Issuance on June 5, 2023, received their payout, further solidifying Fast Credit’s position as a reliable investment choice.

The timely redemption underscores the company’s ability to navigate the complexities of the financial landscape and strategically manage its debt instruments.

Emeka Iloelunachi expressed his enthusiasm, stating, “We are thrilled to announce the successful payout of our Series 2 Commercial Paper Issuance. This achievement reflects not only the strength of our business but also the dedication of our team and the trust our investors place in us. We remain committed to maintaining the highest standards of financial integrity and transparency.”

The redemption of the Series 2 Commercial Paper adds to the positive narrative surrounding Fast Credit’s financial performance, enhancing its reputation within the financial markets.

This triumph resonates not only within the company but also across the broader community of investors, analysts, and stakeholders closely monitoring Fast Credit’s financial trajectory.

Fast Credit’s ability to deliver on its financial commitments reinforces its position as a leading financial institution and sets a benchmark for excellence in the industry.

As the company continues its trajectory of success, investor confidence remains buoyant, signaling a positive outlook for Fast Credit in the competitive financial landscape.

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Capital Market

Nigeria’s Commercial Papers Surge to Over N1 Trillion

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ATM Withdrawal - Investors king

Commercial Papers (CPs) listed on the FMDQ Exchange in the first 10 months of the year now worth N1 trillion.

This represents a 279.38% increase compared to the same period in 2022, signaling a significant shift in corporate financing strategies.

The financial services sector takes the lead, contributing approximately 55% of the listed CPs while the manufacturing sector closely follows with 37 CPs and the real estate and agriculture record 24 and 19 CPs, respectively.

The trend aligns with the observation of David Adonri, Vice Chairman of Highcap Securities, who notes that the surge in high-interest rates prompts companies to seek more cost-effective funding sources, turning to CPs as a viable solution for short-term capital needs.

Adonri emphasizes the advantage of CPs, especially in financing working capital, as they offer a lower cost compared to traditional bank borrowing.

Echoing similar sentiments, Johnson Chukwu, CEO at Cowry Asset Management Limited, underscores the impact of the high-interest rate environment, driving companies to explore the money market for funding.

The ease of issuing commercial papers adds to their appeal.

Tajudeen Olayinka, CEO of Wyoming Capital and Partners, sheds light on the practicality of CPs for real sector businesses facing prohibitive capital costs.

The surge in CP listings in the fixed-income market reflects the strategic utilization of this short-term funding source.

This financial shift comes against the backdrop of Nigeria’s inflation figure at 27.33% and a Monetary Policy Rate of 18.75%.

The Central Bank of Nigeria’s recent approval of an explicit inflation-targeting framework further emphasizes the need for adaptive financial strategies in the face of evolving economic conditions.

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