Capital Market

Oxford Business Group and African Securities Exchanges Association to team up for new Covid-19 Response Report

Published

3 years ago

June 3, 2021

A landmark Covid-19 Response Report (CRR), produced by Oxford Business Group (OBG) in partnership with the African Securities Exchanges Association (ASEA), will explore the impact of the pandemic on efforts to attract inflows to the region’s capital markets and the investment opportunities emerging ahead of the global economic recovery.

Titled “Financial Markets in Africa“, the CRR will provide in-depth analysis of the industry’s performance during the pandemic and potential for growth in an easy-to-navigate and accessible format, focusing on key data and infographics relating to the region’s socio-economic landscape.

Marking OBG’s latest Pan-African CRR, the report will examine the contribution that Africa’s exchanges are expected to make towards the region’s economic development in the near term.

Other topics set for analysis include the collective push under way across the continent to strengthen financial integration, which is seen as key to boosting investor interest in the region’s capital markets.

The report will include an in-depth interview with Edoh Kossi Amenounve, ASEA President, together with case studies looking at how key industry players-maintained business continuity during the pandemic and are now preparing for post-Covid expansion.

“Although the Covid-19 pandemic crisis will continue in 2021, the vaccination rollout is giving new confidence to African capital markets, and we expect to have a significant better year than 2020 in terms of transaction values,” Amenounve said.

Commenting ahead of the signing of a Memorandum of Understanding for the report, Karine Loehman, OBG’s Managing Director for Africa, said Africa’s capital markets were poised to play a pivotal role in attracting investment for the next phase of the region’s social and economic development, which is expected to focus on making future economic growth both sustainable and more inclusive.

“While the pandemic has inevitably taken its toll on the region, Africa had already carved a niche as a popular investment destination before Covid-19 arrived and is today home to some of the world’s fastest-growing economies,” she said. “Our report with the African Securities Exchanges Association will look at the many opportunities awaiting investors who are keen to help drive the region’s transformation and, at the same time, unlock the potential of Africa’s capital markets.”

The CRR will form part of a series of tailored reports which OBG is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Covid-19 Economic Impact Assessment articles and interviews.

Click here to subscribe to Oxford Business Group’s latest content: http://www.oxfordbusinessgroup.com/country-reports

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Capital Market

Stanbic IBTC Holdings to Raise N550bn Through Debt Issuance, Rights Issue

Published

1 week ago

April 25, 2024

Samed Olukoya

Stanbic IBTC Holdings, one of Nigeria’s leading financial institutions, is set to raise a total of N550 billion through a combination of debt issuance and a rights issue.

This ambitious move comes amidst the backdrop of regulatory changes and the need for financial institutions to bolster their capital bases to meet new requirements set by the Central Bank of Nigeria (CBN).

The announcement was made in a notice of the company’s annual general meeting filed with the Nigerian Exchange Limited.

According to the disclosure, Stanbic IBTC Holdings plans to establish a debt issuance program with a capacity of up to N400 billion.

This program will enable the company to issue various forms of debt securities, including senior unsecured or secured, subordinated, convertible, preferred, equity-linked, or other forms of debt obligations.

Also, the board of Stanbic IBTC Holdings is seeking shareholder approval to raise additional equity capital of up to N150 billion through a rights issue or offer for subscription.

Shareholders will also vote on increasing the company’s issued and paid-up share capital to accommodate the proposed capital raise.

Stanbic IBTC Holdings has been a key player in Nigeria’s financial landscape, with a strong track record of performance and a diverse range of financial services.

The proposed capital raise is expected to provide the company with the necessary resources to pursue growth opportunities, enhance its market position, and continue delivering value to shareholders and stakeholders alike.

Capital Market

Nigerian Breweries to Raise N600 Billion to Tackle Foreign Exchange Debt

Published

2 weeks ago

April 22, 2024

Samed Olukoya

Nigerian Breweries Plc, the largest brewery in Nigeria, has announced plans to N600 billion through a rights issue, with the primary objective of clearing its N500 billion foreign exchange debt burden.

This initiative was unveiled by Uaboi Agbebaku, the company’s secretary and legal director, during a pre-annual general meeting press conference held in Lagos.

Agbebaku stated that Nigerian Breweries is committed to implementing a comprehensive company-wide reorganization strategy to ensure a resilient and sustainable future for all stakeholders.

“The additional capital raised via rights issue will be utilized to settle all overdue foreign exchange debts and payables, effectively eliminating foreign exchange exposure,” Agbebaku explained.

He further highlighted the importance of strengthening the company’s balance sheet and liquidity position to restore profitability in the shortest possible time frame.

Hans Essaadi, the managing director and CEO of Nigerian Breweries, echoed Agbebaku’s sentiments, acknowledging the challenging operating environment characterized by factors such as double-digit inflation rates, currency devaluation, and foreign exchange challenges.

Essaadi emphasized the urgency of addressing these issues to mitigate their adverse impact on the company’s financial performance.

To achieve its objectives, Nigerian Breweries intends to leverage the support of its majority shareholder, Heineken Plc, which has committed to contributing over 50 percent of the N600 billion fundraising target.

This partnership underscores the strategic importance of the rights issue in revitalizing Nigerian Breweries’ financial health and positioning it for sustainable growth.

As part of its broader business restructuring efforts, Nigerian Breweries had previously announced plans to temporarily suspend operations at two of its nine breweries.

Sade Morgan, the director of corporate affairs at Nigerian Breweries, explained that the company is committed to executing its 2024 business recovery plan, which comprises cost management, operational optimization, and portfolio innovation.

“Our strategy for success in 2024 revolves around strong cost management, operational efficiency, and the introduction of exciting innovations to delight our customers,” Morgan stated.

“We remain dedicated to our employees, communities, and stakeholders as we navigate through these challenging times.”

With the proposed rights issue, Nigerian Breweries aims to not only alleviate its foreign exchange debt burden but also to fortify its financial resilience and drive sustainable growth in the dynamic Nigerian market.

Capital Market

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

Published

3 weeks ago

April 15, 2024

Samed Olukoya

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.