Connect with us

Capital Market

BUA Foods Crosses N1 Trillion Market Value in Four Days

Published

on

BUA Foods Plc

BUA Foods Plc, the newly listed arm of BUA Group, on Monday hits N1.053 trillion market capitalisation just four days after it was listed on the Nigerian Exchange Limited (NGX).

BUA Foods listed 18 billion ordinary shares at N40 a unit on the main board of NGX on Wednesday 5, 2022. At N40 per share, BUA Foods’ market capitalisation was N720 billion. However, because of its attractiveness to both local and foreign investors, the stock rose by over 20 percent in the first two trading days to N48.4 per unit.

Demand for BUA Foods continues as investors scooped 204,599,864.00 on Friday, bolstering the price to N53.2 a unit. On Monday, another 101,356,308 shares were traded at N58.5 to increase market capitalisation to N1.053 trillion from N720 billion it was listed just four trading days ago.

The company has now added N1.05 trillion to NGX liquidity in line with the Exchange projection. “It is expected that this listing will also increase the visibility of the food manufacturing, processing, and distribution company, BUA Foods, to investors on the African continent and across the globe.,” stated NGX.

BUA Foods Plc presently focuses on cultivating, processing, manufacturing, producing, mixing, packing, preserving, extracting, refining, importing, exporting, buying, selling, trading, and dealing in all kinds of foods, consumables, food materials or derivatives as well as raw materials for making all kinds of foods, food products and ingredients for making any kind of foods and consumables.

BUA Foods was created in November 2021 following a restructuring by way of a scheme under Section 711 of CAMA (the “Restructuring”) among BUA Sugar Refinery Limited (“BUA Sugar Refinery”), IRS Flour Mills Limited, IRS Pasta Limited, BUA Rice Limited, BUA Oil Mills Limited, and BUA Foods Limited (the “Entities”), further to which BUA Sugar Refinery (a private limited liability company, incorporated on 13 April 2005 and commenced business operations in September 2008) emerged as the surviving entity. As part of the Restructuring, the name of the enlarged entity was changed to BUA Foods with its operations reorganised into five business divisions: Sugar, Flour, Pasta, Rice and Edible Oils. In December 2021, the Company was converted into a public limited liability company. BUA Foods is affiliated with diverse group companies under the BUA brand that span the food and infrastructure sectors.

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.

Continue Reading
Comments

Capital Market

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

Published

on

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.

Continue Reading

Capital Market

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

Published

on

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.

Continue Reading

Capital Market

Fixed Income Market Turnover Sees 30.47% Decline Despite Bond Activity

Published

on

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.

Continue Reading

Trending