NGX Lists N1.7trn New Issuance, $4bn Eurobond In Q1
BY CHINYERE OBIORA, LAGOS – Nigerian Exchange Limited (NGX) has listed new issuance worth N1.701 trillion and Eurobonds of $4 billion on its platform in the first quarter of 2022.
Listed across both the bonds and equities markets, these insurances are integral in deepening the market, improving liquidity and tradability, as well as increasing access to capital to fund growth initiatives.
Under the NGX’s bond market, the Federal Government of Nigeria (FGN) dominated issuances, raising about N589.05 billion locally and listing $4 Billion in Eurobonds.
Also, corporates leveraged the low yield environment to fund expansion objectives and pursue debt refinancing, raising a total of N35.3 billion.
In the equities market, NGX started the year with the landmark listing of BUA Foods’ 18 billion shares listed at N40 per share, adding N720 billion to the NGX market capitalisation. Abbey Mortgage Bank also listed its right issue of about N3.028 billion, while Access Holdings, following its merger and acquisition listed new shares of 35.545 billion shares valued at N353.675 billion.
It is not secret that capital is critical for business growth either in form of debt through bonds, or equity through shares. The Exchange, as an important component of the capital market, therefore plays a significant role in the capital formation process because of the tremendous opportunities that ensue from its activities.
It is expected that a thriving Exchange will continue to mobilize long-term savings to finance long-term investment by providing risk capital in the form of equity or quasi-equity to entrepreneurs, a role NGX continues to prioritize.
Recalled that NGX highlighted five major focus areas in 2022 in its efforts to deepen access and attract new generation of investors to the market with its Chief Executive Officer, Mr. Temi Popoola, saying The Exchange would drive growth in 2022 by focusing on five strategic areas, including building on digital transformation, listings and delistings, technology, partnerships and sustainability.
According to him, 2021 was a historic year for The Exchange as the former Nigerian Stock Exchange (NSE) completed its demutualisation process, following statutory approvals from the Securities and Exchange Commission and Corporate Affairs Commission (CAC).
Popoola said NGX would seek to consolidate its historic status with a new verve of digitisation by creating innovative and automated access to the market while ensuring overall quality of listed companies and ease of capital raising process.
He further said The Exchange would deploy strategic initiatives to attract financial technology (Fintech) firms to the stock market, including launching of a Nasdaq-style board for the listing of tech companies.
The NGX boss said; “Today, there are lots of capital raising from tech companies globally. Our market can be a source to raise this capital. SEC has already taken the leadership. It will help to drive economic growth and mobilise capital from sectors of surplus to deficit.”
For him, the NGX would also accelerate the digitisation of its processes and operations to attract more investors, especially the millennial and youths, who are increasingly turning to alternative investment options.
Similarly, Popoola said NGX would work on integrating the market to digital banks and other transactional channels in order to make the market a viable and accessible investment option to all investors.
