Govt, Private Firms Raise N3.44trn In Bonds, Commercial Papers

Government and private companies raised N3.44 trillion funding through Corporate Bonds and Commercial Paper(CP) issuance in two years.

The outgoing president of  the Association of Issuing Houses of Nigeria (AIHN), Ike Chioke, disclosed this at the group’s annual general meeting (AGM) and presentation of the 2022 annual report in Lagos. This is even as AIHN has appointed Kemi Awodein as the new president, after Chioke’s two year tenure elapsed.

He said: “capital raising activities in the local environment consolidated on the successes recorded in 2021. Notably, 333 deals valued at about N3.44 trillion have been recorded over the last two years in the local debt market. This largely reflects the activities of corporations in the bonds and commercial paper issuance space while also considering states’ sponsored instruments.”

In August 2022, he added that, Dangote Industries Limited successfully closed its Series 1, dual tranche, bond issue N187.59 billion under its N300 billion bond issuance programme, which was followed in December 2022 by the issuance of the Series 2 bond issuance of up to N112.42 billion, the largest corporate bond in the Nigerian capital market.

“Also, MTN Nigeria Communications Plc established a N200 billion issuance programme under which it issued its N115 billion Series 1 Bond in September 2022. The transaction is the first bond issuance by a Nigerian telecommunications company,” he pointed out.

He also said: “recently, the Lagos State government established a N1 trillion Debt and Hybrid Instruments Issuance Programme in May 2023. These transactions among many others further substantiate the increased confidence of companies and investors in our local capital market.”

To support future growth, he advised investment banks to be innovative and consider increasing participation in the technology revolution that is shaping sectors around the globe.

Chioke said, the growth underscores its commitment to fiscal responsibility and efficient management of resources.

He said, the investment banking segment of the market achieved this milestones in 2022, despite global and domestic macroeconomic headwinds, saying that the sector sustained the momentum seen in 2021 as many economies continue to recover from the impact of COVID-19.

Presenting the Group’s financial position as at December 31, 2022, he said, AIHN revenue increased by 31 per cent over the past three years.  The group’s total assets stood at N416.14 million in 2022, higher than N361.05 million it recorded in the 2021 financial year.

It also recorded a total income of N85.41 million in 2022, higher than N64.78 million it achieved in 2021. Also, the group achieved an income surplus of N53.98 million in 2022, higher than N36.33 million it posted in the 2021 financial year.

In her acceptance speech, Awodein said: “we will continue from where Ike Chioke dropped the barton. We will continue to make giant strides in the development of the market. I ask for your collective support for us to achieve our collective goal of lifting the market.”