Thread by @Nairametrics

Good evening and welcome again to @Nairametrics #CorporateNewsRoundup for the week ended January 16th, 2020. This thread is brought to you by @BluechipTechNG.   

The thread starts here.

1/We begin with some financial services news recap. Last week, Standard Chartered Bank Nigeria Plc crashed the interest rate for its ‘personal overdraft’ from 1.25% to 1% per month.

@Nairametrics reported that the review made Standard Chartered one of the banks with the lowest interest rates in Nigeria.

The development can also be seen as a strategic move by the bank, as it makes major inroads into Nigeria’s highly lucrative...

…but competitive retail lending space. The retail end, which includes divisions such as personal and payday loans, has recently witnessed increased competition with the entrants of #Fintechs who disrupted the space.

2/The Central Bank of Nigeria projected in its Q4 2020 Credit Conditions Survey Report that the supply of secured and unsecured credits to households would increase in Q1 2021.

According to the report which was seen by @Nairametrics , the availability of secured and unsecured credits to households had also increased in Q4 2020.

Note that some of the factors responsible for the increase in credit availability in Q4 2020 are expected to also drive the expected increase in Q1 2020. Some of these factors include: changing economic outlook, increased market share objectives, and improving economic outlook.

3/The CBN’s Deputy Governor in charge of Financial Systems Stability, Mrs. Aisha Ahmad, noted in her statement during the apex bank’s latest Monetary Policy Committee (MPC) meeting that last year, more than one million bank customers took bank loans with interest rates below 20%.

According to her, it was a positive improvement, especially when compared to what obtained in 2019. She said:

“The gradual decline reported in lending rates is a positive development that improves access to credit for more households and...

…businesses with a view to stimulating economic activity, creating jobs and driving a more sustainable and inclusive growth.”

4/The Central Bank of Nigeria issued the framework that would guide Quick Response (QR) Code Payments in Nigeria. @Nairametrics reported that it was a proactive move by the CBN towards ensuring the safety and stability of the Nigerian Financial System,...

...as well as promoting the use and adoption of electronic payments, and fostering innovation in the payments system.

Note that Quick Response (QR) Codes are matrix barcodes representing information presented as square grids, made up of black squares against a contrasting background that can be scanned by an imaging device, processed and transmitted by appropriate technology.

5/In the same vein, @Nairametrics reported that the CBN had unveiled the framework for regulatory sandbox operations in the country. The apex bank took this proactive step towards ensuring more flexible ways of engaging with operators in the payment solutions/fintech space.

The Regulatory Sandbox will serve as a formal process to regulate how fintech firms carry out live tests of new products/services, delivery channels, or business models in a controlled environment, with regulatory oversight, subject to appropriate conditions and safeguards.

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6/Last week, the Bank of Industry announced that it had successfully concluded a landmark $1 billion loan syndication transaction, in a bid to improve its capacity to support MSMEs.

@Nairametrics reported that the transaction was the third major international debt syndication deal successfully concluded by BOI within the last 3 years.

Prior to this deal, the bank had earlier in 2018 raised the sum of $750 million with the support of the African Export-Import Bank "@afreximbank" – a loan which has been fully repaid.

7/Stanbic IBTC Holdings Plc sent a corporate disclosure to the Nigerian Stock Exchange, informing stakeholders that its subsidiary, Stanbic IBTC Bureau De Change Limited (SIBDC), had relinquished its operating license for the...

…conduct of Bureau de Change business operations in the country.

According to the corporate filing, the need to discontinue its operations became imperative given changes in regulations,...

…which now affords customers the opportunity to purchase foreign exchange (PTA and BTA) directly from Stanbic IBTC Bank at any of its branches nationwide.

8/In fintech news, Nigeria’s @theflutterwave made Y Combinator’s list of top startups by valuation. @Nairametrics reported that the Nigerian fintech startup was valued at $150 million and ranked 115 out of all the startups featured on the list.

Y Combinator is an American startup accelerator that offers seed funding to a wide range of startups. It released the January 2021 edition of top companies by valuation with the aim of helping potential employees,...

…partners and late-stage investors get to know a wider set of YC companies.

9/In investment news, Meristem Securities claimed that interest rates would remain low until, at least, the end of H1 2021.

This is according to a statement that was made available by Meristem at the end of its recently held webinar on Global Economy and Outlook.

Meristem acknowledged that there was mounting pressure for upward movement in yields from several stakeholders, but concluded that there appeared nothing concrete in sight. To that end, Meristem advised investors to move away from Treasury instruments…for now.

10/Dangote Cement Plc announced the completion of the first tranche of its share buy-back programme, having bought back shares of the company worth N9.77 billion.

The announcement was disclosed by the management of the company,...

...in a recent statement issued and signed by the Deputy Company Secretary, Mr Edward Imoedemhe, on 11 January, 2021.

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11/Aliko Dangote, Africa’s richest man and the founder of Africa’s manufacturing conglomerate, Dangote Group Plc, saw his net worth fall by $840 million to $17.5 billion between January 7 and 8.

The decline was attributed to a drop in Dangote Cement Plc’s share price, following the completion of the first tranche of the Cement’s share buy-back programme.

@Nairametrics reported that Dangote Cement’s market capitalization lost N339 billion on the Nigerian Stock Exchange (NSE).

12/In deals news, Heirs Holdings expanded its Oil and Gas portfolio by acquiring a 45% stake in OML 17 from Shell Nigeria.

The company also acquired related assets, through TNOG Oil and Gas Limited (a related company of Heirs Holdings and Transcorp)...

…from the Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and ENI.

According to a statement that was seen by @Nairametrics , TNOG Oil and Gas Limited will have sole operatorship of the asset in a transaction...

…that is one of the largest oil and gas financings in Africa in over a decade.

13/@ardovaplc Petroleum Plc announced ongoing plans to acquire oil and gas retail outlet Enyo Retail and Supply Limited.

According to a corporate action issued by @ardovaplc, Enyo accepted the acquisition offer. However, the deal is still subject to the completion of a due diligence exercise and the receipt of all required regulatory approvals.

Note that @Nairametrics reported in September 2019 that @ardovaplc had obtained its board’s approval to acquire downstream assets in the country, in line with its expansion plans.

14/Lastly on this week’s Corporate News Roundup, Notore Chemical Industries Plc said it had shut down its fertiliser plant for maintenance purposes.

The maintenance procedure will help restore the 500,000MTPA capacity plant’s productivity and facilitate a sustainable bounce back in operations.

That's our thread for this week.

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Until we do this again.....do have a profitable week ahead.

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