Economy
Emerging Market Governments Raise $129b Eurobond in H1 2018
By Dipo Olowookere
About $129 billion was raised from bond launches in the first half of 2018 by emerging market governments, Business Post has learnt.
Quoting UK-based Financial Times, analysts at FBNQuest Research, in their daily Good Morning Nigeria report of July 31, 2018 titled Eurobond market in good health, disclosed that more would still be likely raised before the end of this year.
Curiously, the average life of the new debt has increased by about seven years from last year while the rating has fallen.
The boost to the average life can be explained in part by the maiden 30-year Eurobonds issued by a number of African countries including Nigeria and Egypt.
In general, market conditions for issuance from Africa have been supported by the sanctions imposed on Russia, which is normally a prominent issuer in the sovereign and the corporate space.
According to FBNQuest Research, ratings downgrades notwithstanding, investors are in the hunt for yield, above all it would appear on longer dated issues.
Angola raised $1.25 billion from the sale of 30-year paper in April at 9.375 percent and reopened the issue earlier this month by selling a further $1.75 billion on more favourable terms.
More often, the terms for the borrower worsen on account of normalization and the downgrades. The question then becomes whether foreign currency issuance is still preferable to local. In this context it is significant that many EM central banks (such as Indonesia) have recently raised their policy rates.
Investors will generally expect a higher yield in this market environment, and will generally get it.
One way to sustain investor interest in a challenging market is to offer a new narrative. The reforms pledged by Abiy Ahmed, the Ethiopian prime minister appointed in April, amount to one such. The door is to be opened to foreign investment in telecoms, retail and perhaps financial services. Minority stakes in Ethiopian Airlines, one of the few profitable state-owned carriers, and Ethio Telecom would be marketable. For the latter, there is an obvious sub-regional buyer.
At the other end of the credit spectrum, we note reports from the wires that an unnamed Turkish company may refinance Zambia’s $750 million Eurobond maturing in 2022. The Zambian government is also looking to refinance some of its outstanding Chinese loans. Last week Moody’s downgraded Zambia to Caa1 (sub-speculative).
The report also noted that the normalization of US monetary policy has a lot further to run by all accounts. The latest increase in the Fed funds rate in June to a range of between 1.75 percent and 2 percent has brought real rates close to zero.
Consensus within the FOMC currently points to another two hikes this year, and three more in 2019. It has since been underpinned by a very strong GDP report for Q2 2018 (first estimate) as well as some gung-ho talk from the US Treasury secretary, Steve Mnuchin, about growth prospects in the two to three years ahead.
By Aduragbemi Omiyale
The founder and chief executive of Austin Laz and Company Plc, Mr Asimonye Austin Lazarus Azubuike, has sold off about 52.24 million shares of the organisation.
The stocks were offloaded in 11 tranches at an average price of N4.36 per unit, amounting to about N227.8 million.
The transactions occurred between December 2025 and January 2026, according to a notice filed by the company to the Nigerian Exchange (NGX) Limited on Friday.
Business Post reports that Austin Laz is known for producing ice block machines, aluminium roofing, thermoplastics coolers, PVC windows and doors, ice cream machines, and disposable plates.
The firm evolved from refrigeration sales to diverse manufacturing since its incorporation in 1982 in Benin City, Edo State, though facing recent operational halts.
According to the statement signed by company secretary, Ifeanyi Offor & Associates, Mr Azubuike first sold 1.5 million units of the equities at N2.42, and then offloaded 2.4 million units at N2.65, and 2.0 million units at N2.65.
In another tranche, he sold another 2.0 million units at a unit price of N2.91, and then 5.0 million units at N3.52, as well as about 4.5 million at N3.87 per share.
It was further disclosed that the owner of the company also sold 9.0 million shares at N4.25, and offloaded another 368,411 units at N4.66, then in another transaction sold about 6.9 million units at N4.67.
In the last two transactions he carried out, Mr Azubuike first traded 10.0 million units equities at N5.13, with the last being 8.5 million stocks sold at N5.64 per unit.
By Dipo Olowookere
ASO Savings and Loans Plc has been delisted from the daily official list of the Nigerian Exchange (NGX) Limited.
This action followed the revocation of the operating licence of the company by the Central Bank of Nigeria (CBN) in December 2025.
In a circular on behalf of the NGX Regulation (NGX RegCo) by Ugochi Eke, it was disclosed that the effective date of the delisting is today, Friday, January 16, 2026.
Already, the company has been notified of this development, according to the notice obtained by Business Post.
Before ASO Savings lost its operating licence, it had failed to meet some post-listing requirements, a part of the disclosure from the NGX RegCo stated.
“The board of NGX Regulation Limited via its decision dated January 1, 2026, approved that the step below should be taken pursuant to the process for regulatory delisting of issuers.
“The board has approved the delisting of ASO Savings and Loans Plc from the Nigerian Exchange Limited’s daily official list effective January 16, 2026.
“ASO Savings is hereby notified of this enforcement action and is advised to direct any communication in respect of the foregoing to [email protected].
“NGX RegCo was engaging the listed entity, concerning its outstanding post-listing obligations. However, due to the revocation of the operating license of ASO Savings by its primary regulator, the Central Bank of Nigeria (CBN) effective December 16, 2025; NGX RegCo will delist the entity from the daily official list effective January 16, 2026.
“In view of the foregoing, NGX RegCo has proceeded with publishing the name of the Company in the national dailies.
“The company has been duly notified of this enforcement action, and this publication serves as notification to the investing public, particularly shareholders of the company and investors in the Nigerian capital market,” the statement read.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has issued a stern warning to oil and gas investors that petroleum licences in Nigeria are strictly for active development, not asset hoarding or speculative holding, declaring that operators must drill or risk losing their rights.
He made this admonition while delivering his message at the 2025 Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Licensing Bid Round Conference in Lagos, where he outlined the government’s hardline stance on asset utilisation and investor accountability.
“The oil assets in portfolio are not mere symbols or souvenirs,” Mr Lokpobiri said, adding that, “Holders of licences are obligated to drill, drill and drill for a shared benefit for the Government, Nigerians and the operators.”
He stressed that the administration is determined to ensure petroleum assets are translated into tangible economic value, noting that licences are time-bound rights granted solely for productive use.
“These assets belong to the Federal Government, and licences are granted strictly for a defined period for productive use, not passive ownership,” the minister said. “Our licensing framework is designed to eliminate speculation and ensure that only serious, capable investors participate.”
Mr Lokpobiri also issued a strong caution to bidders seeking to participate in the 2025 licensing round, urging them to fully understand the process and obligations before submitting bids.
“As prospects take part in this bid round, a clear understanding of the modus operandi guiding the process is essential,” he said, recalling previous bid rounds where some winners attempted to reverse their commitments.
“Past experiences have shown instances where some winning bidders sought refunds based on unmet expectations or perceived asset limitations,” Lokpobiri stated. “Such actions are untenable, as there is no provision in law for the refund of a bid already won.”
According to him, the conference was convened to remove ambiguity and protect the integrity of the licensing system, stressing that the government would strictly enforce all contractual obligations arising from the process.
“This conference serves to provide clarity upfront,” he said. “Participants must be fully informed, deliberate and committed, as the Government will uphold the sanctity of the process and enforce all obligations.”
The minister’s remarks reinforce the Federal Government’s broader push to accelerate upstream development, boost production and attract only technically and financially capable investors into Nigeria’s oil and gas sector, amid renewed licensing activity under the Petroleum Industry Act (PIA).
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