capital market
Chapel Hill’s infrastructure debt fund raises N26.8bn
The newly listed Chapel Hill Denham Nigerian Infrastructure Debt Fund (NIDF) on Monday disclosed that it is raising N26.8billion series 9 offer a few days after listing on the Nigerian Exchange Limited (NGX).
The NIDF said the series 9 offer is for 246,182,408 units (nominal value of N100 each) issued at N108.89 per unit for an aggregating offer value of N26.8 billion.
In a regulatory filing, the NIDF said the fundraising is under the N200 billion Issuance Programme and is still open for subscription.
According to the NIDF, the offer was approved by the Securities & Exchange Commission and opened on September 19, 2023.
“The issuance represents the Fund’s ninth (9th) capital raise since inception in 2017 and the first since its Listing on NGX.
“The proceeds from the Offer will be applied towards infrastructure loans approved by the Fund Manager’s investment committee,” the NIDF said.
On October 5, NIDF’s 853,817,692 units were listed on the Main Board of NGX at N108.39 per share and will remit quarterly dividends to investors by paying out profits from investing in industries like power, transportation, healthcare and education.
With the listing, Chapel Hill’s NDIF became the first local currency-denominated infrastructure investment trust fund on its platform.
Through its listing on NGX, NIDF opens up the chance for investors to benefit from a diversified portfolio of asset backed loans across multiple sub-sectors and geographical spread, and listing on the NGX will further improve liquidity.
The NIDF is a N200 billion public infrastructure investment fund managed by Chapel Hill Denham.
The Chairman of NDIF, Phil Southwell during the fact behind the figures said the fund launched mid-2017 has generated 155 per cent returns.
“We have been fortunate enough not to have any non-performing loans (NPLs) and so it presents interesting risk returns for investors. In the UK market where I am originally from, 103 of the 350 stocks on the FTSE 350 are investment trusts and I look forward to being able to say the same thing about the NGX,” he said.
On his part, Chief Executive Officer, Chapel Hill Denham, Mr. Bolaji Balogun, said that NIDF has been Nigeria’s best performing fund over the last 5 years and has delivered significant impact and economic returns. He further stated that NIDF has achieved a market capitalization of N92.54 Billion, a freefloat of c.95%, and a remarkable record of zero non-performing loans from inception till date, a testament to an effective portfolio risk management strategy.
The Chief Executive Officer, NGX, Mr. Temi Popoola emphasised the commitment of the Exchange to infrastructural development and wealth creation in the country. He noted that the listing aligns with NGX’s mission to support financial market instruments that drive sustainable wealth creation and infrastructural advancement in Nigeria. According to Popoola, NGX will further enhance the visibility of NIDF, giving investors access to more investment options.
Investors in the Nigerian equities market lost N250 billion at the close of trading on Tuesday.
This followed the dip in the share value of Oando, UPL, Academy, and others on the trading floor today.
After five hours of trading at the capital market, the equity capitalisation crashed to N56.1 trillion from N56.3 trillion posted by the bourse on Monday.
The All-Share Index (ASI) decreased to 99,217.60 from 99,651.67 recorded the previous day.
The market breadth was negative as 26 stocks advanced, 23 declined, while 72 others remained unchanged in 8,511 deals.
Okomuoil, John Holt, and Conhall PLC led other gainers with 10 percent, 9.79 percent and 9.43 percent growth in share price to close at N291.50, N3.14, and N1.74 from the previous N265.00, N2.86, and N1.59 per share.
On the flip side, Oando, UPL, and Academy led other price decliners as they shed 9.75 percent, 9.09 percent, and 8.00 percent each to close at N12.50, N2.50, and N1.84 from the initial N13.85, N2.75, and N2.00 per share.
On the volume index, Transcorp led trading with 47.509 million shares valued at N581 million in 306 deals followed by GTCO which traded 37.853 million shares valued at N1.64 billion in 258 deals.
Veritaskap traded 34.950 million shares valued at N31 million in 173 deals.
On the value index, GTCO recorded the highest value for the day trading stocks worth N1.64 billion in 258 deals followed by MTNN which traded equities worth N598 million in 427 deals.
By Opeyemi Abdulsalam
Femi Otedola, a prominent billionaire businessman, has made a significant move by acquiring additional shares in FBN Holdings.
This development was made public through a corporate filing on the Nigerian Exchange Group (NGX) on Monday.
The acquisition adds 2.22 percent to Otedola’s existing stake in the company, solidifying his position as a major shareholder.
With this latest acquisition, Otedola’s total shareholding in FBN Holdings now stands at 11.63 percent, the highest among all shareholders.
This significant stake cements his influence and control in the company’s decision-making processes.
Overall, this development highlights Otedola’s status as a shrewd businessman and a key player in the Nigerian financial sector.
His significant stake in FBN Holdings is a clear indication of his dedication to the company’s success and his contribution to the growth of the Nigerian economy.
According to the NGX filing, Otedola spent N17.2 billion to 797,946,415 shares at 21.58k.
The latest acquisition comes just four days after the serial investor increased his stakes in the holding company to 9.41 percent after splashing a whooping N18.9 billion to buy a total of 863,180,810 shares.
With that and in addition to the latest purchase, Otedola’s shares (direct and indirect) in FBN Holdings has now leapt to 4,178,409,365 — from 2,517,282,140 shares.
This means the businessman is now the biggest shareholder in the company, displacing Barbican Capital Limited, owned by Oba Otudeko, which has 3,110,400,619 direct shares.
In January, FBN Holdings appointed Otedola as the chairman of its board of directors.
The appointment had come two years after the investor became the firm’s single largest shareholder in December 2021, when he increased his stake to 7.57 percent.
A month after the appointment, FBN Holdings named Barbican Capital Limited as its majority shareholder — making Otedola the second major shareholder at the time.
It was learnt that Otedola spent over N100 billion on FBN Holdings shares in three years.
By Opeyemi Abdulsalam
The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has called on investors and market intermediaries to embrace sustainable finance, a move that could unlock a potential $2.6 trillion market.
Dr. Agama made the call at the 2024 Business Luncheon of the Association of Corporate Trustee (ACT) in Lagos, themed “Sustainable Finance: The Role of Corporate Trustees.”
Represented by the Director, Market Development of SEC, Tunde Kamali, the DG emphasised the importance of sustainable finance principles in growing the market.
The SEC boss noted that the principles of sustainable finance offer a new vista for market intermediaries, including trustees, to take their businesses and client relationships to a higher level.
He urged businesses to move towards more sustainable and climate-friendly solutions, citing the daunting challenges facing the planet, including climate change, resource scarcity, social inequality, and economic instability.
Dr. Agama emphasised the critical role of corporate trustees in facilitating sustainable financing, acting as intermediaries between investors and issuers, and overseeing assets while ensuring compliance with legal and fiduciary obligations.
He encouraged trustees to align investors’ interests with sustainable objectives by incorporating Environmental, Social, and Governance (ESG) criteria into investment strategies, guiding capital towards projects and initiatives that promote sustainability.
According to Dr. Agama, the demand for sustainable investing is not yet fully met by investment advisors, presenting an opportunity for financial intermediaries to tap into this growing market.
He stressed the collective responsibility of addressing the demands of the sustainability market, positioning ourselves ahead of the green supply curve while adhering to global standards and frameworks.
The SEC DG assured stakeholders of the commission’s commitment to championing sustainable financing, urging them to move beyond traditional roles, especially in sustainable finance.
He pointed out that the potential market size for sustainable finance is staggering, with opportunities for wealth creation alongside environmental and social impact.
The event also featured speeches from the Director-General, Debt Management Office (DMO), Ms. Patience Oniha, and the President of ACT, Omolola Iyinolakan, who emphasised the importance of sustainability and the role of trustees in protecting investors’ interests.
The push for sustainable finance comes as the world grapples with the challenges of climate change, environmental degradation, and social inequality.
The SEC’s call is seen as a step in the right direction, as Nigeria seeks to align its financial sector with global best practices in sustainable finance.
In a related development, a 2023 report by Deloitte highlighted the growing demand for sustainable investing among investors, with many seeking more support from their advisors.
The report noted that investment advisors are not fully meeting this demand, presenting an opportunity for financial intermediaries to tap into this growing market.
The SEC’s commitment to sustainable finance is expected to have a positive impact on the Nigerian financial sector, as stakeholders embrace the opportunities and challenges of this growing market.
Tinubu not discriminating against North – Shettima
Senate resumes plenary Thursday
