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European Investment Bank, UBA sign 60m Euro deal

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  • European Investment Bank, UBA sign 60m Euro deal

The European Investment Bank and United Bank for Africa (UBA) have agreed to a new EUR 60 million lending programme to support private sector investment across Nigeria.

This represents the EIB’s largest ever loan to UBA and will allow UBA to provide longer term loans than currently available to private companies in Nigeria.

The new private sector lending programme was formally agreed on the side-lines of the World Bank Annual Meetings in Washington DC by Ambroise Fayolle, Vice President of the European Investment Bank and Kennedy Uzoka, Group Managing Director and Sola Yomi-Ajayi. Head of Global Financial Institutions at UBA.

“Private sector investment is crucial for creating jobs and ensuring sustainable economic growth. The European Investment Bank is committed to unlocking investment across Africa and we are pleased to build on past success to strengthen our partnership with UBA that will benefit projects across Nigeria.” said Ambroise Fayolle, Vice President of the European Investment Bank.

Speaking at the signing ceremony, Kennedy Uzoka, Group Managing Director, UBA, said “Our growing partnership with the European Investment Bank underlines our long term objective of facilitating the development and growth of African businesses. This facility will enable UBA bridge critical financing gaps for Nigerian companies and deepen our capacity to support their growth aspirations in the local and international market place”

Ambassador Michel Arrion, Head of the European Union Delegation to Nigeria and ECOWAS, described the programme as an example of the catalytic role the EU and its institutions like the EIB are playing to support Nigeria’s economic development. “We look forward to more fruitful partnerships with Nigeria, and particularly with the private sector, which remains the engine of economic growth,” he said.

This represents the first Nigerian operation under the European Investment Bank’s new dedicated Nigeria Private Enterprise Investment Facility, a wider million lending scheme intended to support private sector investment in the country. Under the new initiative private sector entrepreneurs and companies will be able to use loans with a longer tenor than traditionally available to invest and expand activities across a range of sectors.

The new loan will also fund capital expenditure by UBA to strengthen their support for private investment, through expansion of their branch network and improving information technology.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial market.

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Investment

DMO Says N150bn FGN Bonds to Open for Subscription on August 19

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FGN’s N150 Billion Bonds to Open for Subscription Next Week

The Debt Manage Office (DMO) on Tuesday announced that the Federal Government of Nigeria will offer N150 billion bonds for subscription on August 19, 2020.

According to the statement issued by the DMO, the Federal Government will offer N25,000,000,000 at 12.50 percent for bonds maturing in Jan 2026.

For bonds maturing in March 2035, the Federal Government will offer N40,000,000,000 bond at 12.50 percent.

Similarly, a total of N45,000,000,000 bond with July 2045 maturity will be on offer at 9.80 percent interest rate while another N40,000,000,000 bond with 12.98 percent interest and March 2050 maturity will also be on offer.

On interest rate, the DMO said “For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.”

On the unit of sales “N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.”

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Pension Funds Invest N55.25bn as Total Assets Hit N10.7trn

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Pension Funds Administrators Invest N55.25bn

The Pension Funds Administrators said a total sum of N55.25 billion has been invested under the Contributory Pension Scheme in infrastructure as of the end of May.

This was stated in the commission report titled ‘Summary of pension fund assets as at 31 May, 2020’ obtained on Monday.

According to the report, the total assets under the Pension Funds Administrators stood at N10.79 trillion during the period under review.

In the commission amended investment regulation, it had stated that it would invest the funds in line with the provisions of Pension Reform Act, 2014.

This was also stated by the PenCom. The PenCom said the Pension Funds Administrators must maintain a multi-fund structure in line with the regulation.

It stated, “In addition to the requirements of other guidelines issued by the commission on corporate governance, ethics and business practices, each PFA shall establish an investment strategy committee as well as a risk management committee, in compliance with section 78 of the Pension Reform Act, 2014.

“The investment strategy committee, in addition to other functions specified in the Act, shall formulate internal investment strategies to enable compliance with this regulation, taking into cognisance the macro-economic environment as well as the investment objectives and risk profile of the respective PFA Funds.”

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Investment Commitment Drops By 67% to $5.06bn in H1, 2020

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Nigeria’s Investment Commitment Depreciates to $5.06 Billion in H1, 2020

The Nigerian Investment Promotion Commission (NIPC) disclosed that the nation’s total investment commitment by investors declined to $5.06 billion between January and June 2020.

This represents a decline of 67 percent or $10.9 billion from the $15.15 billion reported in the first half of 2019.

The commission disclosed this in a report obtained in Abuja on Sunday and stated that the drop was in line with the projected downward pressure in investment inflows given the negative impact of COVID-19 pandemic on the economy as a whole.

The report also revealed that investors from Nigeria and three other countries announced 34 projects in 16 states and the Federal Capital Territory during the first quarter of the year.

Top destinations for investors in the first quarter were $2.61 billion; Lagos, $221 million; Nasarawa, $56 million; Ekiti, $50 million; and Cross River, $15 million.

Accordingly, the transport and storage sector attracted 40 percent of the total investment commitment while information and communication received 32 percent with mining and quarrying attracting 22 percent.

The United States of America emerged as the most active source of investment during the first quarter, committing 43 percent of the announcements.

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