FMDQ Exchange admits FG’sN162.6 billion Sukuk Bond.

The Federal Government of Nigeria has once again demonstrated its unrelenting commitment to the development of local infrastructure through the debt capital markets, by listing the N162.56 billion Ijarah Sukuk bond on the FMDQ Securities Exchange.

This is according to a notification by FMDQ which reads: ‘’FMDQ Exchange has successfully admitted the following Bond to its platform: The Federal Government of Nigeria Roads Sukuk Company 1 Plc N162.56 billion Ijarah Sukuk’’.

Sukuk bond are sharia-compliant, fixed-income capital markets instruments, structured in a way to generate returns in conformity with Islamic principles and laws. Some of these principles include; the prohibition of interest, scrutinizing and funding only permissible assets (halal) among others.

The proceeds from the bond will be used to fund earmarked capital projects most especially roads, across the states in the federation.

Recall that the Federal Government of Nigeria through the Debt Management Office had recently announced the listing of the aforementioned bond on the Nigerian Stock Exchange and the FMDQ Exchange, as captured by Nairametrics.

What you should know:

  • The bond is the third sovereign Sukuk, sequel to the successful issuance of the N100 billion Sukuk in 2017 and another of equivalent amount in 2018.
  • The recent Sukuk has a maturity period of 7 years and at the time of issuance was massively subscribed by 446%

MTN Nigeria set to hold Annual General Meeting on 7th of June.

The Board of MTN Nigeria Communications Plc has announced that it will host its Annual General Meeting on the 7th of June, 2021.

This is according to a notification signed by the company’s secretary, Uto Ukpanah and seen by Nairametrics. Sequel to this, the following issues will be discussed;

  • The audited financial statement for the year ended December 31, 2020, and the report of its Directors, auditor, and the audit committee.
  • The firm’s proposed dividend will be considered and officially declared.
  • Board appointments will also be considered and ratified.
  • To fix remuneration of managers and Directors in FY 2021.
  • To elect shareholders’ representatives of the statutory audit committee.

What you should know:

  • MTN Nigeria Plc had recently posted a profit after tax of N73.7 billion in Q1 2021, indicating a surge of about 43%.
  • In line with CAC guidelines, attendance at the AGM will be by proxy. Sequel to this, a list comprising of six (6) representatives authorized to represent shareholders, have been made available.

For more information about the AGM, click HERE.

C & I Leasing Plc proposes final dividend worth N39.1 million for shareholders.

The Board of C & I Leasing Plc has proposed a final dividend of N39.1 million to its shareholders for the period ended 31st of December, 2020.

This is according to a notification published on the website of the Nigerian Exchange Group Plc (NGX), stating that a dividend of 5 kobo per share will be paid on all the issued 781,646,167 ordinary shares of the company.

The proposed final dividends will be paid electronically to qualified shareholders on or before 30th of June, 2021. Qualified shareholders are those, whose names appear on the Register of Members as at close of business on 11th of June, 2021. Other qualifying conditions are;

  • Shareholders must have completed the e-dividend registration.
  • In addition, shareholders must have mandated the Registrar (Centurion Registrars Limited) to pay their dividend directly into their bank accounts.

What you should know:

  • C & I Leasing Plc earlier released its Q1 2021 results showing a profit after tax of N77.7 million.
  • In a bid to consider the proposed final dividend, an Annual General Meeting (AGM) will be held by the company on the 29th of June, 2021 by 11:00am

Unilever Nigeria Plc ratifies separation of tea business.

The Board of Directors of Unilever Nigeria Plc has approved the steps required to implement the separation of the Tea business in Nigeria.

Recall that on the 23rd of July 2020, Unilever Nigeria Plc had announced its intention to separate its global tea business, including the retail and food solutions businesses, plantations, T2 and Pukka (the ‘’Tea Business’’), after a strategic review between the firm and its group of companies. This was followed by a subsequent circular issued on the 25th of February, 2021, reminding key stakeholders of the earlier announcement.

Sequel to these notices, Unilever Nigeria Plc finally announced that it obtained approval from its Board of Directors on the 30th of April, 2021 to finalize the separation of the tea business into a distinct company.

According to a recent disclosure issued by the firm,  if ratified by the Company’s shareholders and other regulatory stakeholders, the Nigeria Tea Business will be transferred to a newly-incorporated tea company in Nigeria (“New TeaCo”), held under a newly incorporated tea holding company to create a dedicated tea group within the Unilever Group (“TeaCo Group”).

Some of the assets being transferred by Unilever Nigeria plc to New TeaCo include production assets and other tangible assets used exclusively in relation to the Tea Business; distribution rights to Tea products in Nigeria and export markets; and locally owned unregistered intellectual property rights. However, Unilever Nigeria plc will retain ownership of the site at Agbara and will also provide certain intercompany services to the New TeaCo and the TeaCo Group for a transitional period.

Nigeria Breweries Plc appoints Hans Essaadi as new MD/CEO.

The Board of the Nigerian Breweries Plc has announced the appointment of Mr Hans Essaadi as its new Managing Director/CEO effective from 31st of July, 2021.

This is according to a disclosure signed by the company’s secretary, Uaboi Agbebaku and seen by Nairametrics..

The appointment of Mr Essaadi is sequel to the resignation of the incumbent Managing Director/CEO, Mr Jordi Borrut Bel, who will be completing his assignment in the company on the 30th of July, 2021. Mr Bel resigned in a bid to enable him take up another assignment within the Heineken Group, his resignation has since been accepted by the Board effective by the close of business on the 30th of July, 2021.

On the other-hand, the CEO-Elect, Mr. Essaadi is currently the Managing Director of Al Haram Beverages, the Heineken Operating Company (‘’OpCo’’) in Egypt. He joined the Heineken Group as a Sales Representative in 1991. He rose through the echelons to the present position he is occupying, serving in various leadership capacities and countries en route.

Commenting on his recent appointment as MD/CEO elect, a statement from the company read: ‘’ The Board is pleased to have a person of Mr. Essaadi’s experience and knowledge to take up the position of Managing Director/CEO of the Company, and to continue the turnaround work started by Mr. Borrut Bel.’’

FMDQ admits Stanbic, MTN, Nigerian Breweries, Coronation Merchant Bank and 4 other CPs.

FMDQ Securities Exchange has announced the approval for the quotation of Stanbic IBTC, MTN, Nigeria Breweries Plc and 5 other Commercial Papers.

According to series of verified disclosures from the FMDQ  Exchange, the comprehensive list of Commercial Papers recently approved for quotation on its platform are;

  • Mixta Real Estate N1.09 billion Series 34 CP under its N20 billion CP programme.
  • Stanbic IBTC Bank $8.31 million Series 2 CP under its N100 billion Multi-Currency CP Issuance Programme.
  • Nigerian Breweries N1.05 billion Series 12, N0.94 billion Series 13 and N2.67 billion Series 14 CPs under its N100 billion CP Issuance Programme.
  • Parthian Partners Limited N10 billion Series 1 (Tranche A), N5.26 billion Series 1 (Tranche B) and N4.74billion Series 2 CPs under its N20 billion CP Issuance Programme.
  • TrustBanc Holdings Limited N10 billion Commercial Paper
  • Eunisell Limited N10 billion Commercial Paper
  • Coronation Merchant Bank Limited N0.71 billion Series 13, N14.13 billion Series 14, N1.41 billion Series 15 and N20.19 billion Series 16 CPs under its N100 billion CP Programme.
  • MTN Nigeria Communications Plc N19.77 billion Series 3 and N53.74 billion Series 4 CPs under its N200 billion CP Issuance Programme.

It is pertinent to note that the admission will afford the aforementioned firms the opportunity to not only raise short term capital to support their business operations, but to also enjoy value-added benefits like visibility, transparency and liquidity that comes with being quoted on the FMDQ Exchange.

Airtel Africa Plc reports profit after tax of $415million in FY 2020.

Airtel Africa Plc has released its results for the year ended 31st of March, 2021.

  • Revenue for the period was $3.9 billion. (+14.2% YoY)
  • Total expenses of $2.8 billion were incurred. (+10.3% YoY)
  • Operating profit of $1.12billion. (+24.2% YoY)
  • Profit after tax was $415 million. (+1.8% YoY)
  • Earnings per share of 9 cents. (-12.6% YoY)
  • A final dividend of 2.5 cents per ordinary share was proposed.

See link to results.

Seplat Petroleum Development Company postpones Q1 2021 dividend payment date.

Seplat Petroleum Development Company has announced the amendment in its Q1 2021 dividend payment timeline.

This is according to a disclosure signed by the firm’s Chief Financial Officer, Emeka Onwuka and seen by Nairametrics. Key changes in the timeline include;

  • A shift of the qualification date from 12th to 26th of May, 2021.
  • Register of members will hence be closed on the 27th of May, from an initial date of 13th of May, 2021.
  • The proposed Q1 2021 dividend of US 2.5cents will now be paid on the 10th of June, from an initial date of 6th of June, 2021.
  • However, currency elections can only be made on the 2nd of June, 2021.

Why the change?

According to the disclosure, the key dates for the dividend was amended to allow the registrar facilitate Shareholders’ currency selection for the two dividends (FY 2020 and Q1 2021) which is running concurrently.

What you should know:

  • Recall that Seplat Petroleum had earlier announced currency exchange rates for proposed final dividend in FY 2020.
  • The firm had reported a 2020 FY loss of $80.2 million.

For more information about the changes in the dividend timeline, click HERE.

FMDQ approves quotation of MTN’s Commercial Paper worth N73.5 billion.

FMDQ OTC Securities Exchange has approved the quotation of MTN Nigeria series III and series IV Commercial paper worth a combined total of N73.51 billion.

This is according to a notification by the Securities Exchange which reads: ‘FMDQ Exchange is pleased to announce the approval for the quotation of the MTN Nigeria Communications PLC ₦19.77bn Series 3 and ₦53.74bn Series 4 CPs under its ₦200.00bn CP Issuance Programme on its platform.’’

According to the notice, the recent disclosure is part of a N200 billion CP Issuance programme earlier announced by the firm. Recall that the telecommunications giants had disclosed that it got an approval from FMDQ to raise its initial CP offering from N100 billion to N200 billion, sequel to the success recorded in its N100 billion inaugural Series I and Series II CP Issuances in June 2020, which have been redeemed.

The proceeds from the CP will be used to meet working capital requirements and for general corporate purposes.

What you should know:

  • The series III and series IV CP cleared at a discount rate of 6.7652% and 7.5546% respectively.
  • The book build for the series III and series IV CP Issuances commenced on 11th of March, 2021 and closed on 19th of March, 2021.

MTN Nigeria issues a 7-Year Series 1 bond worth N110 billion.

MTN Nigeria has announced the successfully issuance of a N110 billion Series 1 7-Year 13.0% Fixed Rate Bonds due 2028, under its N20 billion Bond Issuance Programme.

This is according to a disclosure issued by the telecommunications giant and signed by its secretary, Uto Ukpanah.

According to the disclosure, the Series 1 bond is the first ever teleco bond in Nigeria and the largest corporate bond issued in the domestic capital markets so far, it is a debut listing for the telecommunications giant.

Reacting to the recent development, the Chief Executive Officer of MTN Nigeria, Karl Toriola said: ‘’ ’We are very proud of this landmark transaction, which is the first ever teleco bond issued in Nigeria and the largest corporate bond issuance this year. The domestic debt capital market has given us the opportunity to further diversify our funding sources and extend the maturity of our debt portfolio and profile to match investment in infrastructure. The strong support for this transaction, given the challenging environment, is a reflection of the depth of the market, and investor confidence in MTN Nigeria’s long-term strategy, our management team and the overall telecoms industry.’’

Accordingly, the net proceeds from the bond issuance will partly be used to refinance existing debt and support the roll out of critical network infrastructure.

What you should know:

  • Recall that MTN Nigeria had earlier announced raising the sum of N73.5 billion through its Series III and Series IV CP Issuance Programme.
  • As regards the recent bond issuance, Chapel Hill Denham Advisory Limited acted as the Lead Issuing House while Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant Bank and Vetiva Capital Management acted as Joint Issuing Houses.
  • The book build process in respect of the transaction launched on 9th of April and was completed on 16th of April, 2021.