NGX lists N1.7trn, $4bn Eurobond issuance in Q1 2022

The Nigerian Exchange Limited (NGX) has announced the listing of new issuances worth N1.701 trillion and Eurobonds of $4 billion on its platform in the first quarter of 2022.

These issuances listed across both the bonds and equities markets are integral in deepening the market and improving liquidity, as well as increasing access to capital to fund growth initiatives.

Under the NGX’s bond market, the Federal Government of Nigeria dominated issuances, raising about N589.05 Billion locally and listing $4billion in Eurobonds. Corporates also 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 N353.675billion.

It is no 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.

It will be 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. The Chief Executive Officer, NGX, Mr. Temi Popoola, said The Exchange would drive its growth in 2022 by focusing on five strategic areas including building on digital transformation, listings and delistings, technology, partnerships and sustainability. He noted that 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 the overall quality of listed companies and ease of the capital-raising process.

According to him, The Exchange would deploy strategic initiatives to attract financial technology (Fintech) firms to the stock market, including the launching of a Nasdaq-style board for the listing of tech companies.

“Today, there is a lot of capital raising from tech companies globally. Our market can be a source to raise this capital. SEC has already taken the lead. It will help to drive economic growth and mobilise capital from sectors of surplus to deficit,” Popoola said.