New Telegraph

NGX woos companies for cheap capital as Dangote, MTN, BUA, others raise N683bn

The Nigerian Exchange Limited (NGX) is making fresh moves to woo companies who are seeking to raise cheap and long-term capital to look in its direction as it cited the cases of Dangote Cement, MTN and BUA Cement which have taken the opportunity. A private circular obtained from the Listings Business Division of the NGX by Saturday Telegraph said the NGX is a veritable platform to raise cheap and long-term funds for business growth.

“We are in the forefront of creating opportunities and platform for businesses in raising cheap and long-term funds for strategic business growth and expansion through issuing of securities such as equities and REITs, development bonds, thematic bonds (Green, Sukuk) and Infrastructure bonds, Ethical funds etc,” the statement noted. Meanwhile the NGX disclosed that listed companies like Dangote Cement Plc, telco giant, MTN and BUA Cement Plc among many others have successfully raised about N683.21billion via Bond issue on the Exchange. The three leading companies according to the Head of the Listings Business Division, raised over 60 percent of the total bond raised in the market.

Dangote Cement Plc raised N300 billion while MTN Nigeria Plc, N100 billion and BUA Cement Plc, N115 billion. Other issuers include Fidelity Bank Plc which raised N41.213 billion; Flour Mills of Nigeria Plc raised N29.8 billion; Nova Merchant Bank raised N10 billion; Emzor Pharmaceuticals raised N13.7 billion; while Mecure Industries accessed the market for N3 billion. Others are CardinalStone Financing SPV Plc which raised N5 billion; C& I Leasing Plc (N10 billion); CERPAC (N15 billion), Coronation Merchant Bank, N30 billion and Lagos Free Zone Company, issued N10.5 billion 20-Year Series 1 Senior Guaranteed Fixed Rate Corporate Infrastructure Bond.

“As the post-Covid era approaches, where Governments at all levels are expected to wind-down palliative interventions and stimulus packages, the economy is expected to react with new opportunities and varied risks. More importantly, as economic stakeholders and operators continue to strategize towards scaling up of operations in 2022 and reinvigorating their critical success factors, the impact of appropriate financing cannot be over emphasized. Hence, we need to move forward in terms of understanding how institutions like Nigerian Exchange Limited can assist in accessing the required capital,” the statement read in part.

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