For the first time in the history of its operation, Julius Berger Nigeria Plc recorded loss in the financial year ended December 31, 2016, posting a loss before tax of N1.239 billion, compared to a profit before tax of N6.500 billion in the 2015 financial year.
Even though it recorded an increase in turnover of N119.813 billion in 2016, compared to N119.243 billion in 2015, the chairman of the company, Mr. Mutui Summonu, said the achievement was not enough to “offset the tremendous and critical challenges” the group continued to face in the light of dwindling economic performance and greater uncertainty in the country.
Presenting the Annual Reports 2016 and Financial Statement of the company to the shareholders at its annual general meeting (AGM) in Abuja on Thursday, Summonu attributed the poor outing of the company to the persistent and increased severity of the economic hardships, specifically the large premium paid for the acquisition of foreign exchange at exorbitant rates, which resulted in the unbearable losses that absorbed the operating profit completely.
“This, coupled with the federal and state government’s continued inability to honour contractual obligations on the majority of their projects, had drastic negative effect on the company liquidity and profitability’’, the chairman of Julius Berger added.
“Consequently and regretfully with respect to the unbroken trend of dividend payment of your company, your director will not be recommending the payment of dividend for the financial year ended December 31, 2016.
“Your board and management is more focussed on ensuring the survival of Julius Berger in this harsh economic and operational environment.’’
The chairman added that the company would continue to implement its long-term strategy of diversification with regards to business segments and client mix, saying emphasis will continue to be placed on further increasing the share of private sector clients within its portfolio. According to him, “The company will continue to strengthen its presence in the power sector by enhancing its position as an engineering, procurement and construction contractor of choice. “Opportunities in other new business areas will continue to be identified and explored diligently, with negotiation already proceeding on a number of promising projects, and debt recovery measures, including extraordinary actions already initiated with the federal government, will continue to be pursued to find amicable solution.’’
He said although Nigeria currently faces tough economic times, it retains enormous potential and looks forward to expected development related to the federal government’s Economic Recovery and Growth Plan together with implementation of the 2017 budget, which are expected to serve as catalysts to pull the economy out of recession and place it on the path of sustainable growth. Summonu said the company remains hopeful for the much anticipated positive momentum of economic recovery.
The country’s equities market appreciated by 1.38 per cent at the close of trading on the floor of the Nigerian Stock Exchange on Wednesday, as 37 stocks recorded gains.
This development overturned the losses recorded in the week so far, and consequently settled the year-to-date return at 25.02 per cent. There were 22 losers.
A total of 759.046 million shares valued at N6.295bn exchanged hands in 7,357 deals.
The NSE capitalisation soared to N11.618tn from N11.46tn, while the All-Share Index settled at 33,598.20 basis points from 33,141.85 basis points.
May & Baker Nigeria Plc topped the gainers’ list for the second day in a row, advancing by 10.20 per cent, to close at a year high of N3.78, and settle the year-to-date return at 302.13 per cent.
Ashaka Cement Plc, Unilever Nigeria Plc, Unity Bank Plc and Skye Bank Plc followed, appreciating by 10.18 per cent, 10 per cent, 8.86 per cent and 8.62 per cent, accordingly.
However, International Breweries Plc slid by 4.80 per cent, thus topping the losers’ chart, to close at N28.56. This was trailed by Cutix Plc, 7UP Bottling Company Plc, PZ Cussons Nigeria Plc and Sterling Bank Plc, which depreciated by 4.62 per cent, 4.44 per cent, four per cent and 3.60 per cent, respectively.
All the NSE Indices recorded appreciations in the order of banking, insurance, oil/gas, food/beverage and industrial goods, which appreciated by 2.92 per cent, 1.55 per cent, 1.28 per cent, 1.03 per cent and 0.83 per cent, accordingly.
Commenting on Wednesday trading results, analysts at Meristem Securities Limited, in an email post, said, “After a slight hiccup in the first two trading days of the week, the Nigerian equities market recorded a positive performance as bullish activities were witnessed on most large-cap tickers.
“We however note that there were still profit taking activities on some counters that had gained in the market’s recent rally.”
Foreign currency speculators, who launched an unprecedented attack against the naira in the last two weeks, got their fingers burnt on Tuesday when the nation’s currency staged a major recovery, rising to N310 to a dollar at the close of business, compared to N375 at which it sold on Monday.
The naira fell to an all-time low of about N400 to a dollar on the parallel market last week fuelling concerns that it would plummet further to N450-N500/$ this week.
But findings from THISDAY showed that the naira defied expectations, climbing to as high as N305 to the dollar at some parallel market points in Lagos on Tuesday afternoon, before settling at N310.
Forex dealers and currency analysts attributed the significant gain on the parallel market to excess supply of the greenback in the market, even as it looked like a lot of speculators lost the shirts on their back.
THISDAY gathered from a reliable source that speculators who thought that by attacking the currency last week, coupled with misplaced concerns that the Central Bank of Nigeria (CBN) was going to stop the allocation of forex for school fees and medical bills abroad, this would compel the central bank and President Muhammadu Buhari to alter their stance against the devaluation of the currency.
But they were disappointed when Buhari, in Egypt at the weekend, adamantly ruled out the devaluation of the naira on the grounds that Nigeria does not have the competitive advantage to benefit from an official currency adjustment.
Reacting to the president’s stance, speculators who had been betting that the naira would depreciate further, started dumping the dollars with reckless abandon, effectively creating excess supply of the greenback in the parallel market.
Commenting on the situation in the secondary forex market, the chairman, Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said: “The market is moving from perception to reality.”
Similarly, an analyst at Ecobank Nigeria, Mr. Kunle Ezun, predicted that the naira would edge higher in the coming days. “We expect that the naira would appreciate further. We have always said that what happened last week was purely a speculative attack.
Some people felt that if they pushed the naira down to that level, they could force the CBN to devalue, so that when the naira is devalued and the gap widens further, they would now bring out the dollar cash to make a kill,” Ezun said. He however urged the fiscal authorities to introduce policies that would help stimulate economic activities, saying that the fundamentals of the economy were still weak.
ABCON also aligned with the federal government’s decision not to further devalue the naira. Gwadabe said this at a media briefing, pointing out that devaluing the naira would create more problems than it would solve. He said that as a way of enhancing transparency in the BDC sub-sector, his association had decided to introduce a forex rate band weekly.
This rate band is expected to serve as a guide for all BDCs and the public on the prevailing exchange rate across the country, he added. In addition, it will be operated in line with the regulated forex rate in the economy.
“This is to forestall exploitation of forex end users, and also to ensure that end users are informed to avoid falling victims of exploitation. “The band will be announced via weekly press releases that will be circulated to the media for publication.
“ABCON will introduce a series of measures aimed at transforming the operations of BDCs in Nigeria to align with global best practices. These include: review and updating of BDC operational manual; introduction of live trading platforms; automation of all transactions and documentation requirements; and increased partnership with the CBN and other relevant agencies.
“Further, as part of its responsibility as a self regulatory organisation (SRO), and also in continuation of its aim to transform its members to compete within the global regulatory currency market, ABCON will seek the approval of relevant monetary and fiscal authorities as well as partnership for effective use of the nation’s external reserves to enhance domestic trade and foreign exchange management. “To this end, our website and internet platforms will be developed to position BDCs to serve as agents of Western Union and currency auctioneers.
“We would also develop platforms that will allow our members to access sources of autonomous foreign exchange like govt agencies, embassies, IOCs and export proceeds, etc,” he explained. He also urged the federal government to introduce policies that would diversify the economy to increase non-oil export earnings, and reduce imports.
This, according to him, would lead to increased foreign exchange inflow and a reduction in demand for foreign exchange. In addition to policies that would diversify the economy, ABCON suggested that the CBN should review the policy of dollar importation into the economy for the purpose of defending the naira.
According to the association, the central bank should introduce a policy whereby the naira is used to intervene in the real sectors of the economy to boost productivity.
Furthermore, Gwadabe said as a way of reducing demand for dollars, the CBN should explore the option of promoting the use and acceptability of naira for transactions within the West African sub-region.
He added: “We observe that this is already happening at the level of informal trading activities within the sub-region, and it is our belief that this can be replicated at the level of formal economic activities.”
Meanwhile, the Chairman of Stanbic IBTC Holdings Plc, Mr. Atedo Peterside, has expressed concern over the uncertainty arising from the federal government’s foreign exchange policy, warning that it is threatening macroeconomic stability in the country and is unsustainable.
He stated this yesterday at the 2016 Standard Bank West Africa Investors’ Conference tagged, “Unlocking Nigeria’s Potential…Growth through Diversification”.
He said the federal government’s foreign exchange policy is the biggest uncertainty facing the country today following the lack of economic policy direction and the likely composition of Buhari’s economic team for much of the third and fourth quarters of last year. According to him, “The argument at stake is not whether to devalue or not because there has already been an effective devaluation.
“The naira prices of various capital goods are now being ‘correctly’ priced purely on the basis of realistic expected replacement costs and so the economy is sliding towards an unpalatable scenario where the consumer suffers the ‘pains’ of devaluation (rising prices) without witnessing any of the expected ‘gains’ such as enhanced fiscal viability (in local currency terms at least) of the three tiers of government and increased competitiveness of Nigerian businesses.”
Peterside stressed that the much-craved economic diversification could only take place meaningfully if new capital investment activity takes place to take maximum advantage of increased domestic competitiveness.
“Sadly, most investors here – local and foreign – are currently caught up in a frenzied pursuit of the cheapest available dollars and the difference between losing this game and winning it can be as high as a mind-boggling 50 per cent on new transactions.
“The pursuit of scarce forex for today’s needs has understandably become the main game in town and this has exacerbated the pressures on Nigeria’s foreign exchange reserves and the naira via the one-way bet that is currently on against the naira, that is, everybody wants to take foreign exchange out and nobody really wants to bring it in,” he added.
He further stated that the excitement caused by the important development in Nigeria’s political landscape last year, where a change in government occurred at the federal level after a keenly contested election, has given way to some apprehension surrounding whether a populist government can take the necessary tough economic policy actions that are necessary to restore confidence and stimulate badly needed new investment activity.
FINANCIAL Market Derivative Quote (FMDQ) Over the Counter, OTC, has returned to its bullish volume in the month of May 2017, recording a total transaction value of N9.49 trillion, representing a growth of 7.32 per cent from N8.79 trillion in April.
FMDQ had, from the beginning of the year recorded continuous growth, until April, 2017 when it fell to N8.79 trillion from N13.42 trillion in March, 2017. The growth pattern in the first quarter shows January declining by 13.1 per cent, but February grew by 14 per cent and March by 10.5 per cent. The return to the bullish trend in May, however, may not bring second quarter position up to N34.22 trillion recorded in the first quarter as the cumulative so far is less than half of the Q1’17.
Data from the FMDQ shows that the Treasury Bills (T.bills) segment continued to dominate, accounting for 40.73 per cent of the turnover in May as against 40.24 per cent in April, while FGN2 bonds recorded 5.23 per cent as in May against 7.19 per cent in April 2017. Activities in the Foreign Exchange (FX) market accounted for 24.88 per cent in May’s turnover as against 27.71 per cent in April while Money Market (Repurchase Agreements (Repos)/Buy-Backs & Unsecured Placements/Takings) accounted for 29.13 per cent of total turnover for the reporting period FX Market as against 22.85 per cent in April.
Transactions in the FX market settled at $6.56billion in May, a decrease of 15.03 per cent or $1.16bilion when compared with the value recorded in April at $7.72billion. The Central Bank of Nigeria, CBN sold $0.985billon through various interventions conducted during the period under review, a 49.50 per cent from the previous month worth $1.07billion.
United Bank for Africa Plc (UBA) successfully raised $500 million, though a debut Eurobond, which was 240 per cent over-subscribed. The significant investor demand reflects the strong global investor appetite for UBA’s credit and support for the Group’s pan-African financial services strategy. The Global Offering is a five-year senior unsecured benchmark bond (144A/Reg S) listed on the Irish Stock Exchange and will further support the Group’s strategic vision, as it continues to grow its franchise across the continent and client segments.
The bond, which is rated by both Fitch (B, stable outlook) and S&P (B, stable outlook), matures in June 2022 and was issued with a coupon rate of 7.75%, priced at an effective yield of 7.875%. This pricing is seen by the global investor community as the best possible pricing for a debut issue from a financial institution of Nigerian origin in current markets. The pricing was at par to the recent bond issue by the Federal Republic of Nigeria, which issued USD1 billion in March 2017.
Investor interest was global, including the United Kingdom, Europe, Asia, the Middle East and the US. Speaking on the offering, the Group Managing Director/CEO of UBA Plc, Mr. Kennedy Uzoka stated: “This successful dollar-denominated offering further illustrates global investor confidence in the strong fundamentals of our Group. The USD500 million bond will complement our stable funding base and support the growth of our balance sheet and the overall business. More importantly, this medium-term funding will further enhance our strength in financing profitable, impactful projects on the African continent.” Also commenting on the Eurobond, the Group CFO, Mr. Ugo Nwaghodoh said: “UBA’s debut global offering is another milestone for us. It is timely in the Group’s growth phase and aligns with our strategic plan to profitably grow the balance sheet, as we maintain our prudent risk management and benchmark asset quality ratios.”
The Nigerian Stock Exchange market capitalisation gained N87bn at the close of trading on the floor of the bourse as 46 stocks recorded appreciations.
The market continued its bullish trend, advancing further by 0.77 per cent, to settle the year-to-date return at 22.56 per cent. Aside of the 46 gainers, 14 losers emerged.
Similarly, the volume and market value of transactions advanced by 5.82 per cent and 18.8 per cent, accordingly.
A total of 528.692 million shares worth N4.84bn exchanged hands in 5,603 deals. The NSE capitalisation appreciated to N11.386tn from N11.299tn, as the All-Share Index closed at 32,937.98 basis points from 32,686.72 basis points.
Forte Oil Plc topped the gainers’ list, advancing by 10.22 per cent, to close at N58.33, while International Breweries Plc sustained its gains and appreciated by 10.21 per cent owing to the announcement of its merger plans.
On the top gainers’ list also were Cadbury Nigeria Plc, Seplat Petroleum Development Company Plc and Dangote Flour Plc, which appreciated by 10.15 per cent, 10.14 per cent and 10.13 per cent, accordingly.
However, Jaiz Bank Plc topped the losers’ table, depreciating by 4.71 per cent to close at N0.81. In the same vein, Golden Guinea Breweries Plc, Julius Berger Nigeria Plc, Neimeth International Pharmaceuticals Plc and Wapic Insurance Plc recorded declines of 4.71 per cent, 4.67 per cent, 4.05 per cent and 3.64 per cent, respectively.
At the close of trading, all the NSE sector indices closed positive, save for the NSE Industry and NSE Insurance indices, which declined by one per cent and 0.23 per cent, respectively.
“Although there was profit taking on large-cap counters (Dangote Cement Plc and Guaranty Trust Bank Plc), positive investor sentiments ruled the day. We expect the market to close positive week on week,” analysts at Meristem Securities Limited said in a post.
The Debt Management Office (DMO) has announced the commencement of a global offering of Nigeria’s first Diaspora Bond.
According to the News Agency of Nigeria (NAN), the DMO made this known in a statement. It said that the nation had filed a registration statement for the bonds with the U. S. Securities and Exchange Commission.
It said that application would be made for the bonds to be admitted to the official list of the UK Listing Authority and the London Stock Exchange Plc.
The office said this was to ensure that the bonds were admitted to trading on the London Stock Exchange’s regulated market.
“The bonds will be direct general obligations of Nigeria and will be denominated in U.S. dollars. “The international Joint Lead Managers are Bank of America Merrill Lynch and The Standard Bank of South Africa Limited.
“The Nigerian Joint Lead Managers are First Bank of Nigeria Limited and United Bank for Africa Plc,’’ it said.
It said there would be a series of investor meetings in the UK, the U. S. and Switzerland from June 13.
The office said that pricing was expected to occur following the investor meetings and subject to market conditions. It said that Diaspora bond was used to raise funds from Nigerians in the Diaspora to finance capital projects and provide an opportunity for them to participate in the development of the country.
As part of measures to fund capital expenditures, the Federal Government had in February announced its offering of one billion dollars euro bond under its newly-established one billion dollars Global Medium Term Note programme.
The office said that the one billion dollars euro bond, which would mature on Feb. 16, 2032, was eight times oversubscribed in the international market at an interest rate of 7.8 per cent with orders in excess of 7.8 billion dollars.
Nigeria’s total trade in the first quarter of 2017 stood at N5.30 trillion, the National Bureau of Statistics (NBS) has said.
The nation’s exports in the period under review stood at N3.01 trillion compared to imports of N2.29 trillion, with a trade balance of N719.38 billion.
The NBS stated that imports fell by 0.9 per cent, adding that the country recorded an increase of 6.5 per cent in external trade According to the NBS, the value of the total trade at the end of 2016 was N17. 35 billion, stressing that the figure was 6.5 per cent higher than the value recorded in 2015. The report, however, stated that Nigeria’s external trade in the fourth quarter of 2016 was valued at N5.28 billion.
“The export component stood at N2.98 billion while the import component stood at N2.31 billion leading to a trade surplus of N671 billion. “Trade by sector showed that crude oil exports had the largest share of the total trade, accounting for N2.43 billion or 45.9 per cent trade in fourth quarter. “The second major contributor to total trade by sector was manufactured goods with N1.17 billion or 22.1 per cent of total trade,’’ it stated.
The report stated that manufactured goods were followed by the non-crude oil products, which was also a major contributor to total trade in the quarter under review. “The non-crude oil products stood at N1.15 billion or 21.8 per cent while Agricultural goods accounted for N212.7 billion or 4 per cent.
“Raw material goods accounted for N309 billion or 5.9 per cent and Solid mineral goods stood at N13.1billion or 0.3 per cent of total trade in the quarter.’’ The report stated that Nigeria’s export intensity in the months of October, November and December 2016 was the highest for South Africa with export intensities of 8.9, 7.3 and 4.1, respectively.
Export intensity in the fourth quarter was also intense with India recording export intensities of 5.8, 5.8 and 1.7 for the last three months of 2016. “ Spain and Netherlands also had high export intensities with export intensities of 4.8, 2.9 and 2.0 for Spain and 2.2, 1.5 and 2.2 for the Netherlands.
“Although United States was one of Nigeria’s major trading partners, its export intensity was low with 0.6, 0.6 and 0.2 for the last three months of 2016.’’ Meanwhile, the report stated that Nigeria imported mainly from China with total imports of N404.1billion or 17.5 per cent of total imports.
It stated that China was followed by Belgium with N356.46 billion or 15 per cent while import trade with Netherlands which was the third highest was valued at N230 billion or 10 per cent.
“ The remaining trading partners contributed relatively lower proportion of the total import trade.
“United States accounted for N205.6 billion or 8.9 per cent while India accounted for N113.9 billion or 4.9 per cent,’’ the report stated.
The Nigerian stock market, which has been described by analysts in recent days as one that is on steroids, sustained its rally Monday, gaining N417 billion, its highest daily gain in two years, to cross the N11 trillion psychological barrier.
This is just as the Central Bank of Nigeria (CBN) paved the way for authorised dealers in the foreign exchange (FX) market to offset their excess foreign currency trading positions to other authorised dealers in the market without seeking the prior approval of the regulator.
On the Nigerian bourse, market capitalisation rose from N10.845 trillion to close at N11.262 trillion, while the All-Share Index (ASI) recorded the daily highest gain in 23 months of 3.9 per cent to close at 32,578.38.
At the close of trading, year-to-date growth rose to 21.2 per cent. Monday’s rally was bolstered by Dangote Cement Plc, which added N290 billion to its value to close at N3.578 trillion, accounting for about 69 per cent of the gains recorded in the market.
In all, Dangote Cement, which accounts for over 30 per cent of market capitalisation, has amassed N596 billion ($1.76 billion) in the first three trading days of June.
The company’s shares, which galloped from N175 at the close of business on May 31 to N210 Monday, have effectively made Africa’s richest man, Aliko Dangote, who owns 91 per cent of the shares in the cement giant, N518 billion ($1.6 billion) in just three trading days.
A stockbroker, Mr. David Andori, expressed confidence that the rally being witnessed in the market would be sustained, given the positive economic indicators.
“When an economy is in recession, investors move from equities to fixed income securities and when the economy begins to recover, investors move back to the equities market. That is what we’re seeing now. “Apart from occasional profit taking that we may see, the positive trend would remain for a significant period of time,” Andori said.
The market had surged N1.285 trillion, improving from N8.913 trillion at the end of April to N10.198 trillion at the end of May.
The rally was triggered by the introduction of the new foreign exchange window for investors and exporters (I&E) by the CBN. Apart from the new FX window, analysts said investors were also responding to favourable economic conditions.
“Looking at the strong growth in the unaudited results that quoted companies released for the period January-March 2017 and the improvement in the macroeconomic environment, we believe the equity market is ready for a recovery in 2017,” analysts at FSDH Research had said.
According to them, the increase in dollar supply to meet the input requirements of manufacturing companies should increase output and revenue in the current financial year.
Meanwhile, as part of efforts to further deepen the FX market, CBN Monday paved the way for authorised dealers in the FX market to offset their excess foreign currency trading positions to other authorised dealers in the market without seeking the prior approval of the regulator.
The central bank, in a circular, said all authorised dealers shall be subject to a maximum spread of N1, adding that funds purchased by an authorised dealer from another dealer on the interbank market shall not be held in position overnight by the buying authorised dealer or sold to another authorised dealer.
The CBN, in the two-page document signed by its Director, Financial Markets Department, Dr. Alvan Ikoku, added: “Such interbank purchases shall only be sold by the buying authorised dealer to its customers for Permitted/Eligible Transactions as outlined in the above-referenced circular. All documentation requirements for Permitted Transactions shall apply.
“Authorised dealers shall not exceed their respective foreign currency trading position (FCTPL) without approval of the CBN. Compliance with the FCTPL shall strictly be monitored by the CBN.
“All interbank trades – spot, forwards, futures, option and swaps – that have an impact on an authorised dealer’s FCTPL are expected to comply with the rate reasonability standards.” In addition, the CBN pointed out that it reserves the right to intervene, as a buyer or sellers as it deems it fit in the interbank market.
It advised the dealers to encourage their corporate clients to on-board the FMDQ-advised forex trading system immediately, in order to avoid sanctions and to deepen the market.
CBN also injected another $190 million into the interbank market Monday. A breakdown of the dollar sales showed the bank offered $100 million as wholesale interventions and allocated $50 million to the Small and Medium Enterprises (SMEs) FX window. Also, customers requiring forex for business/personal travel allowances, tuition and medical fees, among others, got $40 million.
Confirming the latest injection Monday, CBN spokesman Isaac Okorafor said the bank was pleased with the performance of the naira, which has made tremendous gains against the dollar in recent days. According to him, the FX rates at both the inter-bank and BDC segments, had almost converged, prompting even greater optimism that the value of the naira will continue to spike.
The naira rose further against the dollar on the parallel market Monday, where it traded at N365, up from N369 to the dollar last Friday. Also reacting to market developments, Dangote at the weekend commended the performance of the CBN under Mr. Godwin Emefiele as its governor.
Dangote said this when he spoke on Sunday night during the presentation of the 2017 Zik Prize Award for Leadership to Emefiele by the Public Policy Research and Analysis Centre (PPRAC), organisers of the award. Dangote highlighted the central bank’s intervention in the agriculture and real sectors of the economy, noting that they had been impactful.
“The policies of the central bank contributed in saving the economy,” Dangote said. According to PPRAC, the CBN governor exhibited dexterity and resilience in managing the economy despite the recession.
It pointed out that Emefiele’s singular courage, commitment and nationalist passion led to the conception and implementation of the CBN Anchor Borrowers’ Programme (ABP), which in just one full year added over two million tonnes of rice to the national output, created more than half a million direct jobs and was transforming rural lives in many states of the federation. Furthermore, the organisers of the awards pointed out that the CBN’s management of the FX market under Emefiele was worthy of mention.
“At a time when other countries, notably Venezuela, Egypt and Angola, were reeling under the vagaries of galloping inflation and social strife due to severe exchange rate depreciation, occasioned by global commodity price collapse, Emefiele in a most humble, courageous, yet ingenious manner led the CBN to adopt creative and innovative strategies through which Nigeria has been saved from a certain disaster of currency failure and potentially debilitating hyperinflation that would have decimated the little income of Nigeria’s poor.
“Under Emefiele’s watch at the CBN, Nigeria’s import substitution policy has acquired a new and irrepressible impetus with the slogan, ‘Produce what you eat and eat what you produce’. “Apart from food, this has found expression in different sectors of the Nigerian economy such as fashion, drinks, agricultural inputs, textile, leather products, etc,” PPRAC added.
STANBIC IBTC Bank Plc, has received approval from the FMDQ OTC PLC for the renewal of its shelf registration of N100 billion Multicurrency Commercial Paper (MCP) Programme. Chief Executive, Stanbic IBTC Bank Plc, Dr. Demola Sogunle, said that the renewal of the N100 Billion MCP is in line with the bank’s strategic drive to promote alternative capital sources including debt financing. Pursuant to the approvals, both programmes shall be included on the quotations list of the FMDQ, and all relevant information on the commercial paper (CP) programme uploaded to the FMDQ website.
Stanbic IBTC Bank intends to resume regular issuance under its CP Programme, as part of the bank’s overall assets and liabilities management strategy. Notes issued under the programme shall also be updated to the quotations page of the FMDQ website after which they will be admitted to, and eligible for trading on, the platform. In contrast, Stanbic IBTC Holdings is not immediately contemplating a transaction.
