Naira Trades Flat Against Dollar at I&E as Bitcoin Falls
Published Adedapo Adesanya By Adedapo Adesanya The Naira was stable against the US Dollar at the Investors and Exporters (I&E) and the parallel market segments of the foreign exchange market on Wednesday, March 17.At the I&E window, the local currency was sold at the same rate it was traded against the greenback on Tuesday at N409.75/$1 despite a significant increase in the day’s turnover.According to data from the FMDQ Securities Exchange, transactions at the window increased yesterday by 359.4 per cent as trades valued at $148.54 million were executed in contrast to $32.33 million recorded at the preceding session.At the parallel market, the Naira equally retained its previous closing rate of N485/$1 and also traded flat against the Euro at N582/€1, but appreciated by N2 against the Pound Sterling to close at N678/£1 compared to N680/£1 it sold on Tuesday.At the interbank segment of the market, the Central Bank of Nigeria (CBN) maintained the FX auction rate to commercial banks at N379/$1.
Meanwhile, at the cryptocurrency market, the digital currencies tracked by Business Post moved in different directions yesterday.The Bitcoin (BTC) depreciated by 3.9 per cent to trade at N34,750,001; Ethereum (ETH) lost 0.5 per cent to sell at N1,140,099; Ripple (XRP) declined by 0.6 per cent to trade at N294.51; while Dash (DASH) depreciated by 0.7 per cent to sell at N145,500.
However, during the trading session, the US Dollar Tether (USDT) appreciated by 1.8 per cent to quote at N622.29; Litecoin (LTC) gained 1.6 per cent to trade at N127,000; while Tron (TRX) moved up by 0.2 per cent to sell at N33.75.
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Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art.When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine.He supports the greatest club in the world, Manchester United F.C.Continue Reading DMO Lists N162.6bn Sovereign Sukuk on Stock Exchange
Published Dipo Olowookere By Dipo Olowookere The N162.557 billion Ijarah Sovreign Sukuk with a 7-year maturity issued by the federal government of Nigeria on June 16, 2020, has been listed on the Nigerian Exchange (NGX) Limited.The debt instrument, with a rental rate of 11.20 per cent, was brought to the exchange for listing by the Debt Management Office (DMO) on Thursday, March 18, 2021.“We are excited that the trading of this Sukuk is now permissible having fulfilled the condition for listing stipulated by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN),” the Director-General of the DMO, Ms Patience Oniha, said about the listing of the bond, the third to be listed.She further said, “The FGN Sukuk may only be listed for trading on relevant exchanges after the commencement of works on the road project for the construction of the Sukuk assets .“This is in order to create a pool of assets consisting of non-financial and financial assets that could be freely traded while avoiding the prohibition of dealing in interest-based transactions arising out of the sale of debt and exchange of currency not at par.” Business Post reports that the Sukuk was sold to investors to finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.
With this listing today, members of the general public who invested in the 2020 Sukuk bonds can now sell their investments and those who wish to invest in Sukuk can now do so on the exchange.In a statement, the NGX expressed its excitement that its platform can be used to trade the debt instrument among investors.
It said the listing of the Sukuk would provide an exit opportunity for existing investors and further deepen the Nigerian capital market , particularly, the relatively nascent Sukuk market .The issuance and subsequent listing of the Sovereign Sukuk on the NGX underscore the federal government’s drive for the development of critical infrastructure needed to unlock economic growth , by leveraging innovative and cost-effective financing structures, the statement noted.
Share this: Airtel Eyes Mobile Money Business Listing After Sale of $200m Shares
Published Dipo Olowookere By Dipo Olowookere There are plans to list the mobile money business of Airtel Africa Plc, popularly known as Airtel Money, on the stock exchange, hopefully in the next four year, the telecommunications giant has disclosed.Presently, Airtel Africa, which operates in about 14 countries on the continent, trades its equities on the London Stock Exchange (LSE) and the Nigerian Exchange Regulation Limited (formerly the Nigerian Stock Exchange).Airtel Africa operates a mobile money business that provides financial services similar to banks like deposits and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual credit card and international money transfers.Airtel Mobile Money Business Valuation In a notice to the investment community on Thursday, the firm said the subsidiary, operating legally under the name Airtel Mobile Commerce BV (AMC BV) and is wholly owned by Airtel Africa, is worth about $2.65 billion on a cash and debt-free basis.
However, in order to expand the operations and bring in more hands to achieve this goal, Airtel Africa is willing to let go a 25 per cent stake in the company to minority investors.
In view of this, the global impact investing platform of a leading alternative investment firm, TPG, known as The Rise Fund, has agreed to invest $200 million in the business “through a secondary purchase of shares in AMC BV from Airtel Africa.” About the deal Business Post gathered from the notice that the transaction would be done in two tranches with $150 million supplied in the first “once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at second close upon further transfers.” According to the disclosure from Airtel Africa, “The transaction is expected to reach first close over the next three to four months.” “From the first close, The Rise Fund will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights,” it added.Airtel Africa, TPG Executives Speak A partner at TPG, who leads Africa investing for The Rise Fund, Mr Yemi Lalude, explained his firm decided to invest in Airtel Money because it plans “to enhance the mobile money services, broaden its use cases and grow into new markets.” The CEO of Airtel Africa, Mr Raghunath Mandava, explained that the telco agreed to have the fresh investor on board because it was “in line with our vision of enhancing financial inclusion” and that the firm has the capacity “to help us realise the full potential from the substantial opportunity to bank the unbanked across Africa.” Airtel Africa on the stock exchange In July 2019, Airtel Africa listed its shares on the Nigerian bourse .The listing came barely a month after its industry rival MTN Communications joined the exchange through a secondary listing.During the listing, the exchange admitted a total of 3.758 billion shares of Airtel Africa on its main board at an offer price of N363 each, boosting the market capitalisation of the NGX by N1.36 trillion at the point of listing.The then CEO of the exchange, Mr Oscar Onyema, had said, “This listing serves to deepen the telecoms and technology sector for investors and provides an opportunity for a wider group of Nigerians to be part of the African telecoms growth story.” Mr Onyema had further said, “Today’s listing is a promising development in Africa with Airtel Africa being the second company to have its ordinary shares listed on both the London Stock Exchange and The Nigerian Stock Exchange.” Value of the company’s shares now At the close of business on the exchange on Wednesday, the value of Airtel Africa stood at N930 per unit, indicating an increase of 156.2 per cent.Share this:.