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FG Reappoints Consortium of Banks to Handle $2.5bn Eurobond

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  • FG Reappoints Consortium of Banks to Handle $2.5bn Eurobond

The Federal Executive Council on Wednesday reappointed a consortium of banks to handle the nation’s $2.5bn Eurobond issuance.

The Minister of Finance, Mrs. Kemi Adeosun, disclosed this to State House correspondents at the end of the weekly FEC meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

Adeosun listed the banks as Citi Group, Standard Chartered, Stanbic IBTC, Whitten-Case and African Practice.

She said the proceeds of the $500m bond issued in November 2017, which she put at about N162.50bn, were used to redeem Nigerian Treasury Bills, which matured in December 2017.

“The immediate impact was a significant drop in the bid rates at the auctions of both the NTBs and FGN Bonds in December 2017 and January 2018,” she stated.

According to the minister, the NTBs dropped from about 16 per cent to 13 per cent, while the bonds dropped from about 16 to 16.50 per cent to 13.50 per cent.

The Minister of State for Aviation, Hadi Sirika, said the council approved the substitution of Lufthansa Consulting with the Airline Management Group and Avia Solutions GE to join the other members of the consortium that would provide transaction advisory services for the establishment of a national carrier at the same cost of N341.2m.

He stated, “Today, the council considered a memo from transportation regarding aviation. It was a memo that was brought to substitute a member of the consortium that will provide transaction advisory services for the establishment of the national carrier. That member of the consortium is Messers Lufthansa Consulting.

“Council considered and approved that substitution with another company called AMG (Airline Management Group) with Avia Solutions GE to join the other members of the consortium to continue providing that at the same cost of N341.2m.”

Sirika attributed the substitution to two reasons, “One, that particular member of the consortium, Lufthansa Consulting, in the wisdom of the council, we felt that Lufthansa Consulting is an appendage of the airline group and that might bring conflict of interests because Lufthansa themselves may want to join, partner or help in the process during the procurement phase of this transaction.

“Of course, they are members of Star Alliance, members of One World and members of Sky Team, others may feel short-changed that the person advising us to set up this airline, which is going to be private sector-driven, is a member of an alliance, which they are not part of.

“Secondly, since we appointed the transaction advisers in various aviation projects in May 2017, about six of them; five of them have gone ahead, the one for construction of airport, the one for aerotropolis and the one for MRO and so on and so forth. Most of them have produced the outline business cases and we are on our way to doing the full business case.

“However, Lufthansa Consulting did not accept the offer, neither have they signed any contract. They countered the offer instead.

“One of the conditions is that we should pay them 75 per cent of the total cost, which is against our procurement law; they also wanted us to change the contract from naira to euro; they also wanted us to open an escrow account in an internationally recognised bank outside the country where the money will be domiciled.”

Sirika added, “So, we found that that was against our procurement law and we have been going back and forth for seven months to see whether they can accept the terms of conditions and even if they had done at a time and they didn’t up till today; we couldn’t continue with them because it will compromise the system, which we thought should be transparent.

“So, that is why we sought the approval of council to substitute them why a neutral person and someone who will accept the terms and conditions given – to accept payment in naira, to accept 15 per cent payment of the entire cost as against 75 per cent etc.”

On his part, the Minister of Interior, Abdulrahman Dambazau, said FEC approved the purchase of 35 operational vehicles for the Nigeria Immigration Service at a cost of N483.21m, including the cost of painting the vehicles in NIS colours for N4.09m.

He said the present administration had approved 17 memos for various procurement and others.

The Minister of Communications, Adebayo Shittu, said the council also approved the purchase of equipment to detect illegal radio signals with a view to blocking them.

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 long experience in the global financial market.

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Access Bank Enters Into Definitive Agreement With Cavmont Capital

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Access Bank Signs Definitive Agreement With Cavmont Bank Ltd

Following July 8, 2020 announcement, the Board of Access Bank Plc on Thursday said its subsidiary, Access Bank Limited (Zambia) has entered into a definitive agreement with Cavmont Capital Holdings Zambia regarding the acquisition of Cavemont Bank Ltd.

In the statement released through the Nigerian Stock Exchange, the bank said the proposed acquisition will position Access Bank as one of the top 10 banks in Zambia and improve the bank’s momentum to advance its strategic objectives.

The bank said “This is a highly complementary transaction, combining ABZ’s wholesale and trade finance capabilities with Cavmonth Bank’s retail and commercial banking operations. Customers of the enlarged bank will benefit from greater security offered by what will be one of the most capitalised banks in Zambia with a more diversified product and service offering and a broader geographical footprint and infrastructure. The enlarged bank will be well-placed to participate in the long-term economic growth of Zambia, predicated on the country’s vast reserves of natural resources and fast-growing young population.

The transaction agreement showed Access Bank Zambia will acquire the entire issued share capital, assets and liabilities of Cavmonth Bank while Capricorn Group Limited, majority shareholder of Cavmonth Capital Holdings, will invest around $16.5 million or ZMW300 million of preference shares into Access Bank Zambia.

According to the bank, the transaction is expected to be completed in the fourth quarter of 2020.

Speaking on the transaction, Herbert Wigwe, the Group Managing Director, Access Bank Plc, said “Access Bank is focused on building the scale needed to become a leading bank in its key operating markets through leveraging the right partnerships. This transaction underscores our approach and is another stepping stone towards delivering on our strategic aspirations of becoming the World’s Most Respected African Bank and Africa’s Gateway to the World. It will strengthen our presence in Zambia, while furthering our footprint for growth in the COMESA region, Africa’s largest free trade area.

“Over the years, we have worked hard to build a sustainable international bank of African origin that can expand the potential of businesses, support economic prosperity, facilitate trade and investment and extend the power of banking to millions of people who do not yet have the financial tools to achieve their dreams. This proposed transaction aligns with that strategy”.

Thinus Prinsloo, Managing Director of Capricorn Group, also said: “Access Bank is an African banking group with an impressive growth trajectory and geographic reach across Africa and internationally. This transaction is an excellent strategic fit with Cavmont Bank’s presence in Zambia and will strengthen the capital base from which to achieve long-term sustainable growth. Zambia is an economy with th potential that is poised for a robust recovery, and this combination best positions the combined bank to harness these opportunities“.

Peet van der Walt, the Managing Director of Cavmont Bank, explained that: “Cavmont Bank’s vision is to be a world-class bank, rated amongst the best in Zambia. This proposed merger with Access Bank Zambia accelerates our strategy and positions us as a top ten bank in the country. As a subsidiary of one of the largest banking groups in Africa, Access Bank Zambia has the scale, capabilities and ambition to enable the combined bank to pursue exciting strategic opportunities in Zambia.

“Our customers will benefit from greater security offered by one of the most capitalised banks in the country, increased scale in Zambia, access to a broader digital and retail offering, and a geographic network across the continent. We look forward to working closely with Access Bank to deliver the benefits of the merger to all the stakeholders.” Shareholders should note that the cautionary announcement dated July 8, 2020 is hereby withdrawn and shareholders are no longer required to exercise caution when dealing in the group’s shares in relation to the potential transaction.”

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FIRS Says All Illegal Stamp Duty Fees Collected By NIPOST Will Be Recovered

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‘All Illegal Stamp Duty Fees Collected By NIPOST Will Be Recovered’ Says FIRS

The Federal Inland Revenue Service (FIRS) has responded to the allegation levied against its body by the Nigerian Postal Service (NIPOST) over the printing and sales of Stamp Duty to the public.

FIRS Nigeria, in a tweet titled ‘‘That Vexed NIPOST Tweet by Mrs. Maimuna Abubakar’’ responded to an earlier tweet by Maimuna Abubakar, the chairperson, NIPOST.

FIRS stated that normally it would not have responded to the tweet but given the sensitivity of the situation, it must, therefore, respond in order not to mislead the public.

Part of the Tweets read “NIPOST is a government parastatal established by Decree 41 of 1992 with the function to *develop, promote, and provide adequate and efficiently co-ordinated postal services at reasonable rates*.”

“This function is clearly contrary to the claim by NIPOST over the administration of stamp duties in Nigeria. On the other hand, the FIRS is the sole agency of government charged with the responsibility of *assessing, collecting, and accounting for all tax types including Stamp Duties*.”

FIRS, therefore, said all illegal funds collected by NIPOST for stamp duty will be recovered to the last kobo in line with President Muhammadu Buhari’s inaugurated Inter-ministerial committee, on the recovery of stamp duties from 2016 till date.

The tweet also noted that “In addition, anyone found culpable of misappropriating the funds in the said illegal NIPOST Stamp Duties Account would be made to face the law as provisioned by the country’s statute books.’’

‘‘The public is hereby reminded that we at the FIRS are resolute in our resolve to safeguard national interests and not any personal ego or interest as NIPOST officials appear to carry on lately.’’

A recap to what Mrs. Maimuna Abubarka tweeted on Sunday August 2, 2020 on her twitter handle at @reg_ng. says that “I am worried for NIPOST, having sleepless night because of NIPOST, we need the general public to come to our aid, FIRS stole our mandate FIRS are now selling stamps instead of buying from us.’’

“What is happening, are we expected to keep quiet and let FIRS kill and bury NIPOST? We need to get our mandate back.”

“NIPOST are the sole custodians of national stamps, another agency printing and selling stamps is against the law/ of the land.”

Abubakar also added that “FIRS did not only steal our stamps but also our ideas, what NIPOST had worked for since 2016, our documents, patent and sneaked everything into finance bill and tactically removed the name of NIPOST.’’

“I like to make this clear, NIPOST is the only agency charged with the responsibility of producing adhesive stamps and revenue for the for the purchase of such stamp accrues to NIPOST.”

“There is no where in FIRS act or stamp duty act where it’s so stated that FIRS can produce stamp or sale stamp.”

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FCMB Grows Profit by 29 Percent to N9.7bn in H1 2020

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FCMB Posts 29 Percent Increase in PAT to N9.7bn in H1 2020

FCMB Group Plc has said its profit before tax expanded by 26 percent in the first half of the year ended June 30, 2020.

The lender grew profit before tax from N8.8 billion reported in the same period of 2019 to N11.1 billion in the period under review.

The lender disclosed this in a statement on “FCMB Group records impressive half year results as profit before tax rose by 26 per cent to N11.1bn,” released on Tuesday.

Profit after tax grew by 29 percent year-on-year to N9.7 billion in the first half of the year despite the COVID-19 pandemic.

This, according to the lender, translated to a 9.4 percent return on average equity and 49 kobo earnings per share, an increase of 16 percent and 29 percent year-on-year, respectively.

It explained that FCMB Group comprises of commercial and retail banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited).

The statement noted that the Group has corporate & investment banking (the Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited).

Also, the Group owned the asset & wealth management arms (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

FCMB said, “The half year results also showed that the group recorded an increase in gross revenue by nine per cent to N98.2bn as against N89.8bn for the same period last year.

“Net interest income equally rose by 17 per cent for the first half of 2020 to N45.4bn from N38.7bn posted in the first half of 2019, while non-interest income stood at N17.5bn, an increase of 14 per cent compared to N15.3bn within the six months period last year.”

Lender’s loans and advances rose by 29 percent year-on-year during the period under review and four percent on a quarterly basis to N794.6 billion.
Accordingly, customer deposits jumped up by 28 percent year-on-year to N1.1 trillion in the first half of the year.

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