S&P Global Ratings said today that it has assigned its ‘B’ long-term issue ratings to the proposed U.S. dollar-denominated Diaspora bonds to be issued by the Federal Republic of Nigeria (B/Stable/B).
The amount and interest rate, among other details of the bond, will be determined during the placement.
Copies of the final prospectus relating to the Bonds, when available, may be obtained by contacting:
1. Bank of America Merrill Lynch, Attn: Prospectus Department, NC1-004-03-43, 200 2 North College Street, 3rd floor, Charlotte, NC 28255-0001; and for requests outside the United States, through
2. The Standard Bank of South Africa Limited; 3rd Floor, East Wing,30 Baker Street, Rosebank, Johannesburg 2196 South Africa;
3. ICBC Standard Bank Plc (the distribution agent of The Standard Bank of South Africa Limited in the United Kingdom) 20 Gresham Street, London EC2V 7JE, United Kingdom;
4. FBN Merchant Bank Limited, 10 Keffi Street, Ikoyi, Lagos, Nigeria; or
5. United Capital Plc, 12th Floor, UBA House 57 Marina, Lagos, Nigeria
DESPITE the marked improvement in Nigeria’s foreign exchange market, the external sector and the macro-economic fundamentals, Fitch Ratings, yesterday, assigned Nigeria’s upcoming dollar-denominated senior unsecured bonds an expected rating of ‘B+(EXP)’. This indicates that the relative stability in the foreign exchange market with reversal of the slide in gross domestic products, GDP, did not reflect in the expectations for the bond offer. Recall that on January 24, 2017, Fitch affirmed Nigeria’s long-term foreign-currency IDR at ‘B+’ and revised the outlook to negative from stable. The long-term local-currency IDR was also ‘B+’ with a negative outlook, all reflecting the trepid foreign exchange market and sustained recessionary pressures. The agency said the assignment of the final rating is contingent on the receipt of final documents materially conforming to information it already reviewed. It also noted that the expected rating is in line with Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B+’. “The Outlook on the IDR is Negative. The rating is sensitive to changes in Nigeria’s Long-Term Foreign-Currency IDR. On January 24, 2017, Fitch affirmed Nigeria’s Long-Term Foreign-Currency IDR at ‘B+’ and revised the Outlook to Negative. The Long-Term Local-Currency IDR was also affirmed at ‘B+’ with a Negative Outlook,” the agency stated. Recall that the Debt Management Office (DMO) last week said it will commence a ten-day roadshow in June in the United States, UK and Switzerland, for the country’s first diaspora bond of $300 million. Specifically, DMO said the roadshow kick-started on Tuesday with investment meetings in Britain while Switzerland and the United States follows. It also said that Bank of America, Merrill Lynch and Standard Bank of South Africa are joint lead managers for the sale. The debt office said it had filed a registration statement for the bonds with the U.S. Securities and Exchange Commission, adding that an application would be made for the bonds to be admitted to the official list of the UK Listing Authority and the London Stock Exchange to ensure that the bonds are traded on the London Stock Exchange’s regulated market. The debt office, however, said it expects pricing for the bonds to occur following the investor meetings and subject to market conditions.Customs revenue rises with N136bn seizures
By Adewale Sanyaolu
The Senate on Tuesday urged the Central Bank of Nigeria (CBN) to intervene to save the economy from rising borrowing costs that are not compatible with the Federal Government’s effort to enhance business transactions.
The advice comes as the CBN, the regulatory authority, has continued to insist it cannot reduce interest rate in the country, currently at between 25 and 30 per cent, to avoid worsening the inflationary pressure on the economy.
The banking sector regulator had reenforced its position at the last Monetary Policy Committee (MPC) meeting in Abuja where it left the benchmark lending rate, Monetary Policy Rate (MPR), unchanged for the 7th successive time at 14 per cent.
But at the round-table between the Senate and interest groups in the country’s financial and business sectors in Abuja on Tuesday, the Senate President, Bukola Saraki, frowned at the decision to keep lending rate unchanged, saying it was stifling businesses.
“The economy will not grow despite the current efforts by the Federal Government to revive it, if interest rates charged by banks remained high,” the Senate President said.
In attendance at the meeting held behind closed doors after the opening session were representatives of the CBN, Deposit Money Banks (DMBs), development finance institutions, Chartered Institute of Bankers of Nigeria (CIBN), Nigeria Deposit Insurance Corporation (NDIC), Manufacturers Association of Nigeria (MAN), Nigerian Association of Small and Medium Enterprises (NASME), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), among others.
During the opening of the forum, Saraki said despite government’s new initiatives to boost growth in the economy, Nigerians were still concerned about the impossible interest rate regime businesses were facing to survive.
Meanwhile, despite the recent injection of millions of intervention funds into the foreign exchange market by the Central Bank of Nigeria (CBN), manufacturers early this week raised the alarm over the increasing liquidity constraints in the financial system, saying the development was taking a toll on businesses.
Director General of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, in a communiqué of the council meeting of LCCI, lamented that some companies are not able to draw from facilities to fund their forex requirements.
‘‘This is taking a toll on the business of these companies as some of them cannot provide the cash backing for forex demands. The liquidity problem is a consequence of the mopping of liquidity in the financial system, the tight monetary policy stance and the increasing crowding-out effect on the private sector by government borrowing in the financial system,’’ he said.
On ease of doing business, he said the council commended the various policy measures put in place to improve the business environment while equally applauding the Executive Orders and the acts on the movable collateral and credit registry.
Yusuf noted that the initiatives would create the right environment for business and boost investors’ confidence.
‘‘The LCCI council also applauded the National Assembly on the efforts at providing enabling legislations to boost the inflow of private sector capital to complement the capital budget spending of the government, especially on infrastructure.
“Council noted the recent Business Environment forum between the National Assembly and the private sector on legislations would boost private investment in the economy.”
The Code of Conduct Tribunal has dismissed the case of false asset declaration against Nigeria’s Senate President, Bukola Saraki.
Mr. Saraki made a no-case submission on May 4, after the prosecution closed its case.
In the ruling, the tribunal chairman, Danladi Umar, said the prosecution had failed to prove its allegations.
MARKET SUMMARY 13 JUNE, 2017.
Equities on the floor of Nigerian stocks Exchange yesterday closed trading on a negative note as the all share index dropped -0.28%.NSE All Share Index was 33,141.85 down -0.28%.While Market capitalization closed at N11.460 trillion. A total turnover of shares traded was 410,223,496. in 6,167 deals. exchanged hands.
Taming market infractions through expulsion
Stock markets all over the world are information driven. This is because investors do not see the physical products such as shares and stocks of companies they are buying but rather take investment decisions based on information about the companies that are issuing those shares and stocks.Read more https://
Skye Bank Promises to Release 2016 Audited Accounts Soon
Skye Bank Plc on Tuesday said its audited financial results for the year ended December 31, 2016, would be released soon. In a notification to the Nigerian Stock Exchange (NSE), Skye Bank said most of the challenges faced in the completion of the audit exercise have been surmounted.
According to the bank, the results are with the Central Bank of Nigeria, for approval.Read more http://www.thisdaylive.
FG to raise $600m from SWF, NSE for mining
he Federal Government has started the process of raising $600m for the development of the solid minerals sector, Acting President Yemi Osinbajo has said. Osinbajo said this in a keynote address delivered at the opening of the National Mining Summit in Abuja on Tuesday.Read more http://punchng.com/fg-to-
Naira firms up as CBN resumes intervention with $418m
The exchange rate at the parallel market remained stable at N367 to the dollar yesterday, as the Central Bank of Nigeria (CBN) again injected $418m into foreign exchange market.
The intervention, which cut across various segments of the inter-bank forex market, was aimed at pushing for the convergence of various market rates and resumption of support for the Naira, after a week lull.Read more http://guardian.ng/news/
FSDH forecasts May inflation at 16.13%
DESPITE the significant increases in retail prices, a year-on-year (YoY) tracking of Nigeria’s inflation factors indicates that base effects would yield a huge drop in headline index to 16.3 per cent for the month of May 2017, a massive 94 basis point deceleration from 17.24 per cent recorded in the preceding month.Read more at: http://www.vanguardngr.com/
Oando concludes 396.8m shares debt-to-equity deal
Oando Plc yesterday concluded a debt-to-equity conversion with the listing of about 396.8 million ordinary shares that resulted from the transaction at the Nigerian Stock Exchange (NSE). The transaction was valued at N3.17 billion at the closing value of the integrated energy group.Read more http://thenationonlineng.
The pictures of the 12-year-old girl helping to deliver her baby brother were shared by a Facebook user Nikki Smith on June 8, and since then they have been breaking the Internet.
A lot goes inside a delivery room. While a baby is ushered into this world, there are people who assist the mother, and often her husband too accompanies her to help her through the process. But in the case of 12-year-old Jacee Dellapena, things took a rather dramatic turn when she ended up helping the doctor to deliver her baby brother at a hospital in Mississippi.
The pictures of the same were shared by a Facebook user Nikki Smith on June 8, and since then it they’ve been breaking the Internet. They had more than 1.2 million reactions on them and have been shared more than 190,000 times on Facebook, at the time of writing.
“Meet Jacee! This 12 year old helped deliver her baby brother and the emotions on her face is too amazing not to share! You’re a superstar jacee!” Smith wrote while sharing the images.
Speaking to MSN News Now, the little girl recounted what prompted the doctor to do what he did.
“I started crying because I thought I wasn’t going to get to see him be born, because I was too short.” She wanted to witness the moment and strangely the doctor, Walter Wolfe asked her to help him.
“Doctor Wolf said, ‘Why don’t you just let her suit up and deliver the baby?” And I said ‘What? No!’” Jacee’s mother, Speaking to MSN News Now, the little girl revealed what prompted the doctor to do what he did. “I started crying because I thought I wasn’t going to get to see him be born, because I was too short.” She wanted to witness the moment and, strangely, the doctor Walter Wolfe asked her to help him.
Dellapena’s wife also wrote about the unique experience on a Facebook page Love What Matters how Jacee wanted to attend her second sibling’s birth 18 months ago but was not allowed since she was too young. “So this pregnancy her dad and I discussed it and decided it might be a good learning experience for her!” she wrote.
Jacee’s mom came to the hospital with her husband, and as the process started, the hospital staff converted her bed to help her push. “They converted my bed and Jacee was so upset because she is so short… she thought she wasn’t going to be able to see the delivery over the bed. My doctor, Dr Walter Wolfe then suggested, ‘Jacee why don’t you suit up and come deliver the baby.’ I was in shock lol! I told her as long as zack doesn’t care go ahead and he said ‘go for it Jacee!’ She got suited up for delivery. Although the pain from the contractions and the pushing hurt me so bad… watching Jacee’s expressions on her face were like no other. Concentrating on her face while I pushed helped me so much! Dr Wolfe actually put her hands on the inside of his and allowed her to do the entire delivery. We were all very emotional and it was like no feeling I’ve ever felt. it’s not every day your eldest child at 12 years old gets to deliver your last child,” she wrote.
Though majority of people are loving this, there are also few who felt the experience could perhaps have been traumatic for young Jacee. Hitting out at the detractors, Smith wrote, “I am so glad jacee is being seen all over the world! Although some of you may not agree with her helping deliver her baby brother, this beautiful moment will always be remembered by both her mother and herself. If you don’t like the post just keep scrolling, no need to comment and speak negative. Birth is a natural process and there is absolutely nothing wrong with allowing her daughter to witness this beautiful moment. It’s not for everyone but jacee was a rockstar and helped deliver a newborn! I don’t know about you but I wouldn’t have when I was 12! Mother and baby are being discharged home today and jacee is ecstatic about the feedback she’s getting.”
As a sign of vulnerability in the (so far) high-flying technology sector, many of the biggest names tumbled towards earth on Friday. Among the so-called FAANG five, the declines for the day were: Facebook Inc. (FB
), 3.3%, Apple Inc. (AAPL
), 3.9%, Amazon.com Inc. (AMZN
), 3.2%, Netflix Inc. (NFLX
), 4.7%, and the parent of Google, Alphabet Inc. (GOOGL
), 3.4%, per Investopedia data. The tech-heavy Nasdaq 100 Index shed 2.4% of its value on Friday, per data from Nasdaq, while the tech stocks in the Nasdaq 100 were off by 3.6%, also per Nasdaq. As a point of comparison, the S&P 500 Index (SPX) dipped by less than 0.1%. (For more, see also: The Tech Bubble Will Burst: The Question Is When.)
Eggs in One Basket
On Thursday, Bank of America Merrill Lynch, a division of Bank of America Corp. (BAC
), released a report indicating that the tech sector offers both risks and opportunities for investors. In May, tech was both the best-performing S&P 500 sector and the one whose price-earnings (P/E) ratio increased the most, according to Merrill Lynch. At approximately 19x as of the report’s issuance, Merrill notes that this is the tech sector’s highest valuation since the financial crisis.Moreover, tech is more overweight than it ever has been, among large cap actively-managed funds surveyed by Merrill since 2008. In their May 30 Active Managers’ Holdings Update, Merrill notes that survey respondents are 24% overweight in tech, almost two standard deviations above average. Yet more striking is the fact that fund managers are 71% overweight in FANG stocks (Merrill excludes Apple), though this weight has been flat for a year. The bigger picture is that funds have made a record shift from value to growth sectors over the past 12 months, leading Merrill to prefer value to growth right now. (For more, see also: The Gold Rush into Tech Is Still on.)
Conflicting Valuation Signals
Nonetheless, Merrill says, “But although Tech’s 8% premium to the S&P 500 P/E is the biggest premium we have paid since 2010, it is still low relative to history, even excluding the Tech Bubble.” Moreover, Merrill finds that all industries within the tech sector are sporting P/E ratios that are lower than or in line with their “historical average relative P/E multiples.” Closing out the positives, Merrill says that tech screens as most attractive according to their quant models.
On the other hand, based on its enterprise value (EV) to sales ratio, tech is trading at its highest relative multiple since the tech bubble. Exclude the bubble period, and tech currently is still valued well above the average for this metric, Merrill says. Additionally, Merrill finds that inconsistent accounting treatment of stock-based compensation, which is a large expense for most tech companies, might cause tech’s P/E to be understated by as much as 10%. Bottom line: Merrill is marketweight in tech, based on these conflicting valuation signals.
INVESTINGFund managers may be taking big risks by doubling down on winning stocks and sectors
INVESTINGEquity strategists at Bank of America Merrill Lynch have identified key investment themes for 2017.
INVESTINGThe five FAANG stocks – Facebook, Apple, Amazon, Netflix, Google – may be creating a $2.4 trillion tech bubble
INVESTINGTech companies with billion dollar valuations are mushrooming and the NASDAQ index passed 5,000. Is there an app to tell us if we are in a tech bubble?
INVESTINGTech stocks’ 13% gain in the first quarter highlights the strength of the mega tech companies
INSIGHTSIn the wake of the fiduciary rule, Merrill Lynch is dropping commission-based transactions from all of its retirement accounts, with possible exceptions.
INVESTINGThe technology sector is set to receive the most capital in 15 years.
INVESTINGTech Bubble 2.0 is far off as long as companies maintain their strong growth rates
FINANCIAL ADVISORMerrill Lynch and Edward Jones have both been around for decades, but they approach business very differently. Here’s the lowdown on how they compare.
TRADINGTechnology stocks have taken a drubbing in recent days. Is it time to sell them?
Read more: Tech Stocks May Be Both Cheap—and Risky (AAPL, FB, GOOGL) | Investopedia http://www.investopedia.com/news/tech-stocks-may-be-both-cheapand-risky-aapl-fb-googl/#ixzz4jmzpnDsp
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