Exchange raises over N4.7 trillion through fixed income in H1

The Nigerian Exchange (NGX) Limited has said that with the listing of Coronation Merchant Bank (MB) Funding SPV Plc N25 billion on its platform, it has supported the Federal Government and corporate entities to raise over N4.7 trillion from the capital market through the fixed income segment in the first half (H1) of 2021.

The five-year 6.25 per cent Series 1 fixed rate subordinated unsecured bonds were listed on the NGX at the weekend.

According to the Divisional Head, Listings Business, NGX, Olumide Bolumole, issuers have continued to express excitement and satisfaction over their ability to access capital from the market and list the securities on NGX to provide liquidity for investors.

He said NGX has expressed and proven its commitment to providing issuers with a platform that allows them to raise capital to meet strategic business objectives even in the most difficult times.

“It is the exchange’s delight to see issuers take full advantage of our products and services to support their growth story,” he stated.

Some of the issuers that have listed on NGX in the first half of 2021 include NOVAMBL Investments SPV Plc, Federal Government of Nigeria, Mecure Industries Funding SPV Plc, CardinalStone Financing SPV Plc, Fidelity Bank Plc, FBNQuest Merchant Bank SPV Funding Plc, BUA Cement Plc, eTranzact International Plc, Kogi State Government, TSL SPV Plc, Lagos State Government and Flour Mills of Nigeria Plc.

Meanwhile, Coronation Asset Management in its 2021 report on Nigerian Banks titled ‘Nigerian Banks, Resilience Built In’ released recently, showed that the Nigerian banks’ earnings have been remarkably resilient over the interest rate cycle, even as their profitability has also improved over time.

The report also stated that the stock values of the banks are remarkably cheap compared to Ghanaian and Kenyan bank stocks.

The report, which was written by Ope Ani and Guy Czartoryski of Coronation Research examined what has happened within the Nigerian Banking industry in the last 10 years.

It stated that the return on average equity (RoAE) and return on average assets (RoAA) of the six banks studied have improved over 10 years.

According to the report, the trend appears to be under-appreciated by investors, even as the report showed the positive investment potential in the sector.”