Business
Nigerian Banks To Issue $1.2bn Euro Bonds
Some Nigerian banks have indicated interest in the insuance of Eurobonds worth $1.2 billion in the international financial market during the second half of the current financial year.
The banks putting up this offers, according to reports, are the First Bank of Nigeria Plc (FBN), United Bank for Africa Plc (UBA) and Diamond Bank Plc.
The offers, billed to be complete this financial year would have FBN and UBA raising debt capital to the tune of $500 million each while Diamond would issue $200 million Eurobonds.
Market analysts have attributed the move to the high interest rate regime in the domestic market which is not ideal for financing infrastructure and long term projects, and opportunities for expansion on the continent.
There are also plans by the federal government to raise between N210 billion and N290 billion ($1.33 billion-$1.84 billion) in Sovereign bonds ranging between three and 10 years in the second quarter of this year according to the Debt Management Office (DMO).
DMO also disclosed that it is to auction between N30 and N40 billion worth in five-year and 10-year bonds and in June, would raise between N25 to N35 billion in five-year, seven-year and 10-year paper.
Also, the federal government plans to issue N140.61 billion in treasury bills ranging from three months to one year maturities at its monthly debt auction this week while, the DMO plans to raise N90 billion from debt auction.
Last week, the secured Open Buy Back (OBB) dropped by 14 per cent as against 14.50 per cent stood at. Market analysts attributed the drop to the impact of repaid matured treasury bill. The OBB was 200 basis points up from the Central Bank of Nigeria (CBN) benchmark rate and 400 percentage points above the Standing Deposit Facility (SDF) rate.
Overnight placement nose-dived to 14.50 per cent from 15.25 per cent while call money stood at 16 per cent lower than 15.50 per cent.
Meanwhile the Over-The-Counter Bond market, last week saw investors staking N159.47 billion on 183.34 million units of Federal Government bonds in 1,347 transactions up from N51.93 billion staked on 62.32 million units exchanged in 472 deals during the week ended April 13, 2012.
In volume terms, at the close of market on the last trading day of the week ended April 20, 2012, the most active bond was the 16.39 per cent FGN January 2022, (ninth FGN Bond 2012 Series 1) which recorded 36.33 million units valued at N39.54 billion in 288 trades.
It was followed by the 10 per cent FGN July 2030 (Seventh FGN Bond 2030 Series 3) with a traded volume of 35.39 million units worth N26.69 billion in 292 deals.
A total of 14 out of the 26 available FGN bonds were traded during the review week as against the six traded during the preceding week according to the Nigerian Stock Exchange (NSE) weekly report.
In the Equities Market, the bulls were in charge as most stocks were on the upside thus soaring the aggregate market capitalisation by N323 billion to finish at N6.938 trillion compared to the week’s opening value which stood at N6.615 trillion.
The All Share Index (ASI) also surged by 4.89 per cent to close at 21,756.50 basis points as against its index on board of 20,743.16 basis points.
The NSE-30 Index which tracks the 30 most capitalised companies on the Exchange was also on the upside having risen by 5.08 per cent to close at 995.93 points even as the NSE-Consumer Good Index appreciated by 4.52 per cent to close at 1764.26 points. The NSE Banking Index rose by 9.77 per cent to end at 313.95 points.
Vivian-Peace Nwinaene
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.