Titan Trust Bank Sets To Acquire Majority Stake In Union Bank

Titan Trust Bank logo
Titan Trust Bank Sets To Acquire Majority Stake In Unoin Bank
The Board of Union Bank of Nigeria Plc (Union Bank) has notified the
NGX and Securities Exchange Commission that its investors Union Global Partners Limited, Atlas Mara Limited and other shareholders have reached an agreement with Titan Trust Bank Limited (TTB) to divest their shareholding in Union Bank to TTB.
The agreement, which is subject to regulatory approvals and other financial conditions, will upon completion transfer 89.39% of Union Bank’s issued share capital to TTB.

Commenting on the transaction:
Chairman of Union Bank, Mrs. Beatrice Hamza Bassey said: “On behalf of the Board, we congratulate all the parties involved in reaching this phase of the transaction and the Board looks forward to supporting the next steps to ensure
a seamless completion of the process following regulatory approvals.
We are grateful to our current investors whose significant and consequential
investments over the past nine years facilitated the transformation of Union Bank, one of Nigeria’s oldest and storied institutions. Today, the Bank is well-positioned with an innovative product offering, a growing customer base of over six million and consistent
year on year profitability. This is a solid foundation for our incoming investors to build on as we move into a new era for the Bank.”
Chair, Titan Trust Bank, Mr. Tunde Lemo, OFR said: “The Board of Titan Trust Bank and our key stakeholders are delighted as this transaction marks a key step for Titan Trust in its strategic growth journey and propels the institution to the next level in the Nigerian banking sector.
The deal represents a unique opportunity to combine Union Bank’s longstanding and
leading banking franchise with TTB’s innovation-led model which promises to enhance the product and service offering for our combined valued customers.”
Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo said: “This transaction marks a significant milestone in the journey of our 104-year old Bank. Whilst thanking our current investors for their unwavering commitment to the Bank
over the years, we welcome our new core investor, TTB. We recognize the strategic fit between the two institutions and expect that this deal will deliver the best outcome
for our employees, customers and stakeholders. We look forward to collectively writing the next exciting chapter for Union Bank.”
Chief Executive Officer, Titan Trust Bank, Mr. Mudassir Amray said: “After completing over two years of operations with aggressive organic growth, we are
excited to have an opportunity for a significant leap forward in market share. UBN’s widespread presence, state of the art technology platform, quality staff and strong brand loyalty fits well with our synchronized modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
Rothschild & Cie acted as financial adviser and White & Case LLP and Banwo & Ighodalo acted as legal advisers respectively, to the selling shareholders of Union Bank, while Citigroup Global Markets Limited acted as financial adviser, Pricewaterhouse Coopers as due
diligence partner, Norton Rose Fulbright LLP, Drew Law Practise and G. Elias & Co. acted as
legal advisers respectively to TTB.

First Central Counterparty (CCP) Emerges In The Nigerian Capital Market

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L-R: Ayokunle Adaralegbe (COO, NG Clearing Limited), Tapas Das ( MD/CEO, NG clearing Limited), Paul Kanu(Representative of the Secretary to the Government of the Federation), Oscar N. Onyema OON (Chairman, NG Clearing Limited),   Haruna Jalo-Waziri (Non-Executive Director, NG Clearing Limited), Franca Egwuekwe (General Counsel and Company Secretary, NG Clearing Limited), Mobolaji Adeoye (Non-Executive Director, NG Clearing Limited) during the launch of NG Clearing as West Africa’s Premier CCP.  
L-R: Ayokunle Adaralegbe (COO, NG Clearing Limited), Tapas Das ( MD/CEO, NG clearing Limited), Paul Kanu(Representative of the Secretary to the Government of the Federation), Oscar N. Onyema OON (Chairman, NG Clearing Limited),   Haruna Jalo-Waziri (Non-Executive Director, NG Clearing Limited), Franca Egwuekwe (General Counsel and Company Secretary, NG Clearing Limited), Mobolaji Adeoye (Non-Executive Director, NG Clearing Limited) during the launch of NG Clearing as West Africa’s Premier CCP.

The Nigerian Capital Market witnessed a monumental milestone as NG Clearing limited, the first Central Counterparty in West Africa, formally launched her operations.   

The launch of NG Clearing as a CCP means that exchange-traded derivatives are now a possibility in the Nigerian Capital market. As a Financial Market Infrastructure (FMI), NG Clearing facilitates the clearing and settlement of exchange-traded derivatives, management of counterparty risk, reduction of systemic risk, and promotion of the safety and integrity of Nigeria’s capital market. This opens new and clear opportunities for investors, stakeholders, and other players in Nigeria’s capital market.

The event was hybrid, and it had a mix of high-profile physical and virtual participants. The Secretary to the Government of the Federation, Mr. Boss Mustapha was represented by Mr. Paul Kanu. The Governor of Lagos State was also represented by Mrs. Alake Sanusi. The legislative arm of the Nigerian Government was represented by Honorable Babangida Ibrahim, The Chairman, House Committee on Capital Markets.

The Governor of Edo State, Mr. Godwin Obaseki, The Honourable Minister of Finance, Mrs. Zainab Ahmed, The Honorable Minister of Trade, Industry and Investment Otunba Adebayo Adeniyi, The Director-General of the SEC, Dr. Lamido Yuguda, The Deputy Governor, Financial Systems Stability Directorate, Mrs. Aisha Ahmad and Mr. Tony Elumelu CON, the Chairman of Heirs Holdings all participated virtually with speeches and special remarks.

In his opening speech, the Managing Director and Chief Executive Officer of NG Clearing Limited, Mr. Tapas Das expressed delight as he stressed the monumental significance of NG Clearing’s launch for the Nigerian Capital Market. He linked the emergence of NG Clearing to the maturity of the Nigerian financial ecosystem stating that “With Nigeria’s capital market maturing into offering advanced capital market products such as futures derivatives, it is only ideal to establish a CCP, in line with global best practices. The emergence of NG Clearing is not only an indication of our collective growth as a market but also a marker of the forward-looking intent of the Nigerian capital market”.

He went on to describe the company’s vision as well as the depth of capacity in place to ensure NG Clearing delivers on its vision. He explained that “Our vision is to become Africa’s most trusted CCP. With this vision in mind, we have left no stone unturned in ensuring that we offer world-class infrastructure, transparent and resilient processes, with an experienced team of worthy professionals.”

Mr. Oscar N Onyema OON, the chairman of NG Clearing chronicled the origin of the NG Clearing dream in his address. He stated that “The NG Clearing dream was borne out of a firm commitment to position the Nigerian capital market as a stable and resilient market that offers local and foreign investors sound opportunities without compromising global standards. On this premise, we took steps to identify the gaps that inhibit our market from attaining this positioning. One of the gaps we identified was the absence of the financial market infrastructure known as a CCP.” He also noted that having a CCP is key to the realization of the Nigerian Capital Market master plan.

The Minister of Finance, Dr. (Mrs.) Zainab Shamsuna Ahmed noted that NG Clearing’s emergence will contribute to the post-covid-19 recovery of the Nigerian Economy. She also mentioned that “a door of new possibilities has been opened for growth and development of the Nigerian economy”. In a similar vein, the minister of Trade, Industry, and Investment, Otunba Adebayo Adeniyi opined that “NG Clearing emergence redefines Nigeria’s financial landscape, creating endless possibilities for products that can be developed and deployed”.

The Director-General of the Securities and Exchange Commission, Dr. Lamido Yuguda asserted that the launch of NG Clearing as a CCP is historic for the Nigerian Capital Market. In his words, “the services of NG Clearing will help in deepening the market while placing it on the right path to achieving the required sophistication, depth, and breadth in terms of products and service offerings.” He went on to note that the SEC will continue to deliver on its mandate of ensuring the Nigerian capital market is safe, orderly, and built on integrity. 

Mrs. Aisha Ahmad, the CBN Deputy Governor, Financial Systems Stability Directorate, gave special remarks. She extensively detailed the important roles of NG Clearing in driving stability in the ecosystem. She also stressed the need to adopt sustainable approaches that contribute to the combating of climate change.

The governor of Lagos State, H.E Babajide Sanwoolu as well as the Governor of Edo State, H.E Godwin Obaseki profusely congratulated the Board and Management of NG clearing on the laudable feat of establishing the first CCP in West Africa.

At the event, there was a virtual in-depth panel session on how NG Clearing as a CCP will contribute to the resilience of Nigeria’s Financial System. The session had Teo Floor, CEO of CCP12 (the Global Association of Central Counterparties), Alicia Greenwood, CEO of JSE Clear (South Africa), Narendra Ahlawat, CEO of Multi Commodity Exchange Clearing Corporation (MCXCCL, India), Uche Orji, CEO of the Nigeria Sovereign Investment Authority (NSIA), and Ayodeji Balogun, CEO of AFEX Commodities.

Having been incorporated in 2016 and having also gotten the Securities and Exchange Commission’s nod to begin operations in June 2021, the launch of NG clearing culminates a long journey towards the creation of a world-class- post-trade services provider with a focus on advanced capital market offerings.

The event was streamed live on zoom and YouTube, you can watch the replay with this link https://bit.ly/NG-ClearingLaunchReplay

 

SEC  Commemorate World Investor Week With NGX Digital Closing Gong Ceremony

 

Securities and Exchange Commission
Securities and Exchange Commission

The Securities and Exchange Commission (SEC) rang the bell for financial literacy on the Nigerian Exchange Group’s digital closing gong platform on 22 November 2021 in commemoration of World Investor Week (WIW) 2021.

In delivering the opening remarks, the Divisional Head, Listings Business, NGX, stated, “NGX is pleased to join the apex regulator of the Nigerian capital market, the SEC and all securities exchanges in Nigeria to “Ring the Bell for Financial Literacy” in honour of SEC’s commemoration of the 2021 World Investor Week. Financial literacy and inclusion remain a top priority for us at NGX and we continue to make it a priority to contribute our quota towards the achievement of key targets of Nigeria’s National Financial Inclusion Strategy through initiatives that encourage the wider investing public to develop investment habits. As the sustainable exchange championing Africa’s growth, we are, therefore, pleased to support the SEC on this laudable initiative.”

On his part the Director-General, SEC, Mr. Lamido Yuguda represented by the Executive Commissioner, Operations, SEC, Mr. Dayo Obisan, thanked NGX and the entire capital market community for providing the platform and supporting the SEC in its efforts to build a safe and vibrant capital market. He further stated, “The theme of this year’s World Investor Week is timely given the spate of fraudulent schemes being attempted in the market today. At SEC, we continue to collaborate with stakeholders to educate the public and raise the necessary awareness to ensure investors can indeed protect themselves.”

It would be recalled that NGX commemorated World Investor Week from 4 – 10 October 2021 by implementing a number of activities including hosting a free webinar and an Instagram Live session on how retail investors can take advantage of the opportunities in the capital market and make sustainable investing. Its activities culminated in a virtual Ring the Bell for Financial Literacy with Co-Founder and Chief Operating Officer, PiggyVest, Odunayo Eweniyi.

 

Ardova Announces Largest Local Currency Bond Issuance Of N25.3 billion Series 1 Fixed Rate Bonds under a N60 billion Debt Issuance Programme

 

L-R: Mrs. Aniola Durosinmi – Etti Independent Non-Executive Director, Ardova Plc; Mr. Chuka Eseka - CEO,, Vetiva Capital Management Limited; Mr. Olumide Adeosun - CEO, Ardova Plc; Mr. Moshood Olajide CFO, Ardova Plc; Mr. Eric Fajemisin - ED, Corporate And Transactional Banking Stanbic IBTC Bank and Mr. Olusola Adeeyo Independent Non-Executive Director, Ardova Plc at the signing ceremony for the Ardova Plc N25.3bn series 1 Bond issuance recently in Lagos
L-R: Mrs. Aniola Durosinmi – Etti Independent Non-Executive Director, Ardova Plc; Mr. Chuka Eseka – CEO,, Vetiva Capital Management Limited; Mr. Olumide Adeosun – CEO, Ardova Plc; Mr. Moshood Olajide CFO, Ardova Plc; Mr. Eric Fajemisin – ED, Corporate And Transactional Banking Stanbic IBTC Bank and Mr. Olusola Adeeyo Independent Non-Executive Director, Ardova Plc at the signing ceremony for the Ardova Plc N25.3bn series 1 Bond issuance recently in Lagos

Ardova Plc  has announced the successful completion of a N25.3 billion Series 1 (Tranche A and Tranche B) Fixed Rate Senior Unsecured Bond Issue (“the “Bond Issue”) under its N60 billion Debt Issuance Programme.

The Bond Issue is the largest local currency bond issuance by an indigenous oil and gas company in the history of the Nigerian debt capital markets.
The Bond Issue was 143% subscribed and comprised 7-year Tranche A and 10-year Tranche B bonds. The 7-year Tranche A bonds priced at 13.30% and the 10-year Tranche B bonds priced at 13.65%. The Bond Issue attracted participation from a diverse range of institutional investors including pension funds and asset managers, supported by an A rating from DataPro and an A- rating from GCR. The strong level of oversubscription demonstrated investor confidence in Ardova’s niche position as a leading indigenous integrated energy company, its strong management team, business strategy and credit profile.

Ardova will apply the proceeds of the Bond Issue to fund expansion projects and its working capital requirements.

Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as Lead Issuing House and Joint Issuing House respectively to the Bond Issue. Other professional parties include Banwo & Ighodalo and Aluko & Oyebode who acted as Solicitors to the Issue and Solicitors to the Trustees respectively, and PricewaterhouseCoopers who acted as Reporting Accountants.
Commenting on the landmark issuance, Mr. Olumide Adeosun, Chief Executive Officer of Ardova, expressed delight at the overwhelming success of the Bond Issue and thanked the Issuing Houses and other professional parties for working tirelessly to ensure the timely and successful completion of the Bond Issue.”
Mr. Adeosun also added: “We are humbled by the warm reception of our Series 1 (Tranche A and Tranche B) Bonds Issue by Nigeria’s ever growing institutional investor community. The 7-year and 10-year tranches provide Ardova with the much-needed flexibility to expand and diversify our operations as well as increase our footprint across the country. Our relationship with Nigeria’s debt capital markets commenced in December 2016 with the issuance of the Company’s debut bonds. This landmark transaction evidences our commitment to nurturing this relationship and adopting the debt capital markets as a fundamental part of our funding strategy on our journey towards being the largest supplier of energy in Nigeria.”

Chuka Eseka, Managing Director/Chief Executive Officer of Vetiva Capital Management Limited, speaking on the bond issuance said: “Vetiva is delighted to have provided Ardova with full-scope advisory and issuing house services on the Issue. The success of the transaction demonstrates investors’ confidence in the management, vision and purpose of the Ardova team and we thank the Board and management of Ardova for giving Vetiva the opportunity to lead on this landmark transaction. We are very proud to be associated with Ardova and look forward to extending our advisory capabilities to the Company on its other strategic initiatives.”

Also commenting, Funso Akere, Chief Executive of Stanbic IBTC Capital, said: “Stanbic IBTC Capital is delighted to have advised Ardova on its successful return to the Nigerian debt capital markets. We thank the institutional investor community for supporting the Bond Issue, as its success should encourage other similar companies to access the domestic debt capital markets for their strategic funding needs. We also thank the Board and management of Ardova for giving the Issuing Houses a free hand to guide the process and look forward to working closely with Ardova on subsequent issuances under its ₦60 billion Debt Issuance Programme.”

NGX Hosts 4th Retail Investor Workshop

Nigerian Exchange Group logo
Nigerian Exchange Group logo

Nigerian Exchange Limited (“NGX” or “The Exchange”) is set to host its 4th

Retail Investor Workshop this year on Tuesday, 16 November 2021. The webinar with the theme, Creating
an Investment Portfolio That Works in a Post-Covid Era is in line with The Exchange’s aim to drive development, deepen investor education and promote retail participation in the capital market.
To educate existing and potential investors on market opportunities, the event will feature presentations
from industry experts from the Broker community and the NGX team, a statement from the NGX added.

According to the statement, interested participants can register
at https://bit.ly/NGX_RICW.
Speaking about the event, the Divisional Head, Trading Business, NGX, Mr. Jude Chiemeka stated, “At NGX, we remain committed to creating awareness around the diverse investment instruments available on our platform and how these can help investors achieve their financial objectives under any condition.
This is particularly important given the unprecedented changes brought about by the COVID-19 pandemic
and how it has changed the way individuals, organisations and economies operate today. The Retail investor Workshop will, therefore, stimulate conversations around ethical investing, maximizing returns on
investors’ portfolios and minimizing risks through portfolio diversification.”
Through platforms such as the Retail Investor Workshop, The Exchange continues to respond to the growing need for increased retail participation. With its plethora of innovative products and services, it continues to build a vibrant capital market, deepen activity, improve liquidity and create long-term value
for all stakeholders.

FMDQ Group Launches Africa’s Prime Green Exchange

 

FMDQ Exchange
FMDQ Exchange

The FMDQ Goup on has launched Africa’s first greexn exchange known as the FMDQ Green Exchange to promote economic development through green and sustainable financing.
Chief Executive Officer of FMDQ Group, Bola Onadele, at the hybrid launch ceremony in Lagos, Monday, described the event as a milestone achievement.

Onadele while noting that the biggest risk facing the world was climate change insisted sustainable financing is vital for economic sustainability.

“With climate change becoming one of the biggest risk facing the world today, and in recognition of a great need to promote economic development in Nigeria through green and sustainable finance, FMDQ Group considers it pertinent to launch the green exchange initiative.

“The first in Africa to provide an information platform dedicated to promoting transparency, good governance and the growth of green and sustainable finance in the Nigerian financial market.

“The launch of the FMDQ Green Exchange is a milestone which will contribute to not just Nigeria but Africa’s achievement in our endeavours toward achieving the global climate goals defined in the Paris Climate Agreement and in the UN’s SDGs.

“FMDQ Group recognises the imperative role it plays in the Nigerian financial market and the opportunities its business represents in its ability to promote sustainable economic growth and development.

“As such, understands that the delivery of long-term business success, value creation and prosperity, is not only hinged on financial but also environmental and social performance.

“It is in accordance with this, that the FMDQ Group, through its subsidiaries has continued to take the lead in championing green and sustainable finances in the Nigerian financial markets,” he said.

Onadele appreciated the Lagos State Government for commitment to the green and sustainable finance drive in the state and Nigeria.

He also commended the Federal Government,  Access Bank Plc and North South Power Ltd  the pioneer issuers of green bond in Nigeria.

The Lagos State Governor, Mr Babajide Sanwo-Olu, in his address said that green, blue and sustainable financing would help to address climate change effects.

Sanwo-Olu represented by the Special Adviser on Sustainable Development Goals (SDGs) and Investments, Mrs Solape Hammond, said that the launch was a major step in the right direction for mainstreaming financing in Nigeria and Africa.

He said the world’s first green bond was issued by the World Bank in 2008 and has continued to grow, but the Green Exchange in Luxembourg was not created until 2016.

Sanwo-Olu added that Luxembourg Stock Exchange (LuxSE) had since become the world’s leading platform for sustainable securities issuing about 50 per cent of green securities.

“Nigeria is committed to the SDGs, to achieve this and other lofty goals, funding is required in excess of what the public sector can generate.

“Public funding alone cannot suffice and private capital needs to be mobilised to reach the objectives in the Paris Climate Agreement and the UN SDGs.

“The financial sector will, therefore, play a vital role in accelerating the local markets ability to provide the required support,” he said.

According to him, FMDQ is creating and embracing the opportunities inherent in expanding green, blue and other social sustainability funding options as alternative sources of finance for projects and assets not just in Lagos State but across Africa.

Sanwo-Olu said that Lagos generated in excess of 14 million metric tonnes of wastes annually estimated to be about 11 tonnes per day, comprising mostly of plastics, liquid and organic wastes out of which 65 per cent ends up in the biggest dump site at Olusosun, Ikeja.

The Director-General, the Debt Management Office (DMO), Ms Patience Oniha, in her goodwill message, said that the DMO had been associated with FMDQ from inception and was impressed with the progress achieved so far, in the areas of innovation and price discovery, among others.

Oniha commended FMDQ for initiatives aimed at developing the country’s capital market.

“It means we have to raise funds in our own case. Revenues will be there but we may also need to borrow to finance those projects and this means that we will be issuing securities that comply with those requirements. It means that our initial activity, the domestic green bond market, should increase.

While we have a total of N25.69 million outstanding, we still plan to be in the market sometime next year.

“Going forward, the Federal Government would be an active issuer in the FMDQ Green Exchange and what we need to do is to do a lot of sensitisation to make those projects approved and the funding arrangement,” Oniha said.

SEC’s Third CMC Meeting Holds Today 

 

SEC Nigeria
SEC Nigeria

The Securities and Exchange Commission (SEC) has concluded arrangement to hold the Third Capital Market Committee (CMC) meeting in 2021 from Thursday November 11 to Friday 12, 2021.

The virtual meeting is scheduled to hold through Zoom with key stakeholders in the capital market meeting on November 11, while the usual interface with the press, on the outcome of the CMC meeting, will take place on Friday November 12.

Expected participants at the CMC meeting include Chief Executive Officers (CEOs) of all registered capital market firms (i.e. Broker/Dealers, Investment Advisers, Custodians, Fund/Portfolio Managers, Receiving Banks, Issuing Houses, Rating Agencies, Registrars, Reporting Accountants, Trustees, and Capital Market Consultants, etc.); Chief Executive Officers of: Nigerian Exchange Group (NGX), National Association of Securities Dealers (NASD); FMDQ Group Plc; Africa Exchange Holdings (AFEX); Nigeria Commodity Exchange (NCX); Central Securities Clearing System (CSCS); as well as representatives of relevant financial sector  regulatory agencies, among others.

According to the SEC, “Attendance to both events is strictly by invitation. Invited participants will be sent unique links with which to join the meeting”.

During the meeting, issues bordering on implementation of the Ten Year Capital Market Master Plan, implementation of the Fintech Roadmap, the commodities trading ecosystem roadmap as well as other salient matters relating to the capital market and the economy would be discussed.

The CMC was primarily established to serve as a medium for exchange of ideas among market stakeholders as well as an avenue for providing feedback to the SEC on how to continuously address challenges, improve market operations and enhance the regulatory framework. It is an industry-wide committee comprising members of the SEC, representatives of capital market operators and trade groups and other stakeholders. The CMC meets every quarter.

the Commission had unveiled the ten-year Capital Market Master Plan (CMMP) in November 2014 and has continued to implement the initiatives, which are designed to reposition the Nigerian Capital Market as an attractive investment destination and a critical facilitator of capital formation for the accelerated growth and development of the Nigerian economy.

  • Some of the CMMP initiatives that have been implemented include; Direct Cash Settlement, regularisation of multiple subscriptions, dematerialization of share certificates, and the introduction of the e-Dividend Management System. The CMMP initiatives have helped in promoting transparency, protecting investors and enhancing market confidence. The objectives of the CMMP are also in consonance with the Federal Government’s economic strategy, focused on encouraging a private sector-led economy to drive inclusive growth.
Access Bank $500m Senior Unsecured Eurobond Launch Records 3X Oversubscription

 

Access Bank
Access Bank

Access Bank Plc says it has successfully launched a $500 million  Senior Unsecured Eurobond, as part of its Global Medium-Term Note Programme.
According to a notice signed by the Company’s Secretary, Sunday Ekwochi, and hosted on the Nigerian Exchange Limited (NGX) website, the transaction recorded a massive interest from investors globally, including the United States, Europe, Middle East, Asia and Africa, anchored by a number of large tickets.
The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed orderbook of over $1.6 billion, which represents the largest orderbook ever for a Nigerian bank Eurobond transaction.

The bond which will mature on the 21st of September, 2026, was issued with a yield and coupon of 6.125 per cent, with interest payable semi-annually in arrears.

The coupon of 6.125 per cent is another first in the corporate Eurobond issuance space.
Interestingly, the bond is already trading at a premium from issue levels with bids around 5.89 per cent levels whilst offers are around 5.78 per cent as the unmet demand from the auction filtered into the secondary market.

Access Bank revealed that the net proceeds of the Eurobond will be used to provide medium term funding in a bid to enhance its capacity and support its general banking purposes.
Commenting on the Eurobond Issuance, the Group Managing Director of Access Bank, Dr Herbert Wigwe said: ’’At Access Bank we remain committed to our vision to become the World’s Most Respected African Bank and Africa’s Gateway to the World. The success of our US$500 million Senior Unsecured Eurobond is yet another stride towards the realisation of that vision and underscores our investors’ confidence in the Access Bank story. We are pleased with the diversity of the order book and the success of this issuance further strengthens our resolve to deliver on our strategic objectives.’’
The Senior Eurobond is a 5-year unsecured note under the Bank’s $1.5billion Global Note programme
Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners on the transaction, and Chapel Hill Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.

NNPC Consolidates On Gains, Publishes 2020 Audited Financial Statements

NNPC logo
NNPC logo

Following up on President Muhammadu Buhari’s recent announcement of the
declaration of two hundred and eighty seven billion Naira (N287bn) Profit After Tax (PAT) in year 2020 by the Nigerian National Petroleum Corporation (NNPC), the Corporation has consolidated on the remarkable achievement, by publishing the Audited Financial Statements (AFS) on its official website.

It would be recalled that while announcing the outstanding feat a little over a fortnight ago,
President Muhammadu Buhari, who is also the Minister of Petroleum Resources,
had said: “I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial Statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.”

In compliance with the President’s directive, the NNPC has fulfilled this very important statutory requirement by publishing its Audited Financial Statements today.

Among the highlights of the 2020 AFS is the Corporation’s
group profit which rose from a loss position of N1.7billion in 2019 to a profit of
N287bn in 2020, for the first time in 44 years.

The Group Managing Director of the NNPC Mal. Mele Kyari, had at various times since the President’s declaration of profit, attributed the turnaround to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 per cent, among other tough measures.

Further highlights of the AFS revealed that while the Corporation’s group financial
position increased in total current assets by 18.7% compared to that of 2019, its
total current liabilities increased by 11.4% within the same period.

The group’s working capital remained below the line at N4.56trillion in 2020 as
against N4.44trillion in 2019, the AFS further revealed.

Similarly, the Corporation’s group revenue for the 2020 financial year stood at
N3.718trillion as against N4.634trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to the global impact of the
Covid-19 pandemic.

This is the third consecutive year that the NNPC is publishing its AFS, having done so for 2018 and 2019.

The full document of the NNPC 2020 AFS is available on the Corporation’s website.https://www.nnpcgroup.com/Pages/Home.aspx

Oil In Focus Ahead Of OPEC+ Meeting

FXTM Logo
FXTM Logo

By Lukman Otunuga,
Senior Research Analyst at FXTM

August was a turbulent month for oil prices as conflicting themes caused the commodity to appreciate and depreciate on alternate weeks.

Despite bulls dominating the scene last week, both Brent and WTI Crude have posted their first monthly loss since March. Persistent worries over the Delta variant may spell trouble for oil as September kicks off while widespread flooding from Hurricane Ida could keep bears in the vicinity. With these negative themes stacked against oil and clouding the demand outlook, all eyes will be on the highly anticipated OPEC+ meeting on Wednesday afternoon.

Will OPEC+ Stick to Planned Output Hike?

Markets widely expect the cartel to maintain its current plan to increase production by 400,000 barrels per day despite pressure from the United States to pump more.

The question is whether expectations match or differ from reality?

Given the ongoing developments revolving around Covid-19, the cartel may reiterate that the variant poses a particular risk and may tweak production hikes accordingly. This could be in the form of reducing or halting the 400,000 bpd increases if the demand outlook starts to look unfavourable.

On the flip side, the positive vaccine-related developments across the globe have boosted optimism over a pickup in fuel demand. Looking beyond the risk associated with the Delta menace, other factors could fuel the demand recovery – allowing OPEC+ to stick with its production revival plan until the end of December 2022.

Demand outlook set to improve?

It was only a few weeks ago that the International Energy Agency (IEA) cut its forecast for global oil demand for the rest of 2021 due to the Delta variant. Interestingly, OPEC stuck to its prediction of a strong recovery in world oil demand this year and further growth next year.

OPEC could be on the money, especially when factoring in the stalled prospects of renewed Iranian exports, ongoing government stimulus, and improvement in gasoline demand as road and airline travel rebound. It does not end here. Demand is reportedly improving in the world’s second-largest oil consumer with traffic on China’s busy streets recovering as lockdown restrictions ease.

Let’s not forget about the US jobs report

The NFP report is likely to be the biggest market-moving event of the week, especially after Federal Reserve Chair Jerome Powel offered no concrete taper signals at Jackson Hole last Friday.
Investors will closely scrutinize the jobs report for fresh clues to when the Federal Reserve will begin asset tapering. A strong jobs report may boost sentiment towards the US economy and fuel taper bets consequently propelling the dollar higher. As the value of the dollar rises, the prices of both Brent and WTI crude fall. Alternatively, a disappointing jobs report could cool taper talk bets, essentially weakening the dollar – pushing oil prices higher.

Brent & Crude remain in bearish channel

Taking a look at the technical picture, Brent crude remains in a bearish channel on the daily charts. Despite the sharp rebound witnessed last week, the commodity concluded August roughly 4% lower. The recent candlesticks on the daily charts suggest that bulls could be exhausted with sustained weakness below $73 triggering a decline back towards $70.30 – a level where the 100-day Simple Moving Average resides. A break below this point could see Brent sink towards $67.46, $67 and $64.60, respectively. Alternatively, a solid daily close above $73 may pave a path towards $75 and potentially higher.

We see a similar story on WTI Crude trading within a bearish channel on the daily charts. Resistance can be found at around $69.50 with the 50-day Simple Moving Average just above this level. A strong breakout and daily close beyond $69.50 could encourage a move towards $72 and $73.50, respectively. Should $69.50 prove to be reliable resistance, a decline towards $67, $65, and $61.50 could be on the cards.

Ultimately, where oil prices conclude this week is likely to be influenced by the OPEC+ meeting
and NFP report.

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