Economy
Fidelity Bank to Issue N100bn Bond in Q4 2020
By Adedapo Adesanya
Fidelity Bank Plc has announced plans to issue bonds worth N100 billion in the fourth quarter of the year to boost its capital ratios and funding capacity.
This was made known by the bank’s Chief Operations and Information Officer, Mr Gbolahan Joshua, during an analysts’ call on Tuesday.
The Lagos-based lender will issue the debt in a series, starting with a N50 billion offer which will commence anytime from October.
The extra funds will help increase the bank’s capital adequacy ratio by 2 percentage points, from 18.8 per cent in June, he said.
The bank also plans to refinance a N30 billion, seven-year fixed-interest security with part of the proceeds by recalling it two years earlier.
This is coming at a time when the COVID-10 outbreak, a slump in oil prices and the devaluation of the Naira have affected businesses in the country.
Fidelity Bank is looking to raise funds at a cheaper rate than the 16.5 per cent it paid for a similar issuance in 2015, according to Mr Joshua.
Nigeria’s debt market yields have dropped since the Central Bank of Nigeria (CBN) last year barred individuals and non-bank institutions from buying short-term securities in its Open Market Operations (OMO).
In its forecast, the lender said it expects to see a 15 per cent drop in profit this year compared with 2019, citing the impact of the coronavirus pandemic.
Commenting on the half-year results released at the weekend, Fidelity Bank CEO, Mr Nnamdi Okonkwo said the performance for the period, reflects the resilience of the bank’s business model.
“Due to the global and domestic headwinds witnessed in H1 2020, we proactively increased our cost of risk as the impact of the pandemic slowed down economic activities whilst adapting our business model to the new risks and opportunities of the new normal,” he stated.
According to him, Fidelity Bank, re-stated its first half 2019 figures from N15.1 billion to N9.8 billion to reflect the impact of International Financial Reporting Interpretations Committee (IFRIC) 21- Levies, which was adopted for the first time on the first half 2020 financials.
“The key impact of IFRIC 21 was that our 2020 full year, the Asset Management Corporation of Nigeria (AMCON) cost was recognised 100 per cent in our first half 2020 accounts rather than been amortised over 12 months as was done previously on our financials,” the retiring senior banker said.
He further revealed that, without implementing IFRIC 21, profit for the period would have been N17.9 billion compared to the N15.1 billion reported in the comparable period in 2019.
Its savings deposits in first half 2020 increased by 32.2 per cent to N363.9 billion with the bank on course to achieving the seventh consecutive year of double-digit growth in savings. Its savings deposits accounted for 49.1 per cent of the total growth in customer deposits and now represents 25.9 per cent of total deposits, compared to 22.5 per cent in 2019 full year.
By Adedapo Adesanya
Proprietary Investment firm, VFD Group Plc, recorded a 1,202 per cent rise in its Profit Before Tax (PBT) in the 2024 financial year, closing December 31, 2024, at N11.2 billion.
This marked a turnaround after VFD Group reported a pre-tax loss of N1 billion in 2023 due to macroeconomic headwinds which affected a lot of businesses locally and globally.
Net investment income surged by 95 per cent to N59.0 billion despite a spike in investment expenses to N15.5 billion from N7.4 billion in 2023.
Other metrics showed that net revenue increased by 90 per cent to N71.0 billion, while operating profit grew by an impressive 104 per cent to N48.8 billion.
The firm, listed on the main board of the Nigerian Exchange (NGX) Limited, noted that the development showcased exceptional growth.
“The journey to this milestone was paved with strategic initiatives and a relentless pursuit of innovation,” it added in a statement on Friday.
The company holds investments in over 20 portfolio businesses spanning key sectors such as financial services, banking, market infrastructure, capital markets, technology, real estate, and hospitality.
As of April 22, 2025, VFD Group’s market capitalisation surged by 116 per cent to hit N121.6 billion from N56.2 billion year to date.
“These outstanding results reflect the success of our team’s efforts. As VFD Group looks to the future, it remains committed to delivering exceptional value to its customers and stakeholders,” the statement added.
By Modupe Gbadeyanka
About $90 billion is expected to be generated in economic value by 2035 from new strategies developed by the Nigerian government for agribusiness expansion and livestock transformation.
To achieve this, the National Economic Council (NEC) chaired by the Vice President, Mr Kashim Shettima, has approved the establishment of a Cotton, Textile and Garment Development Board.
At the NEC meeting on Thursday in Abuja, steps to reposition Nigeria’s economy and tackle insecurity at its roots were discussed by the participants, which included the governors of the 36 states of the federation.
The new regulatory body for the cotton, textile and garment sector of Nigeria will have governors representing the six geo-political zones, with Ministers of Agriculture and Food Security, Budget and Economic Planning, and Industry, Trade and Investment as members.
It would be domiciled in the presidency, with representation of the relevant public sector stakeholders, and funded from the Textile Import Levy being collected by the Nigeria Customs Service (NCS), though it would be private sector-driven.
“Nigeria is a nation where cotton can thrive in 34 states. Yet our production level remains a fraction of our potential.
“We currently produce only 13,000 metric tons, while we continue to import textiles worth hundreds of millions of dollars. This is not just an economic imbalance. It is an invitation to act,” he added.
“Our goal is not just regulation. It is a revival. This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production,” the VP stated.
Also at the meeting yesterday, the council approved the establishment of the Green Imperative Project (GIP), with a national office in Abuja and regional offices across the six geopolitical zones.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 0.55 per cent on Thursday, April 24 after the prices of three stocks on the platform ended in green.
This added N10.48 billion to the market capitalisation of the bourse, closing at N1.918 trillion compared with the N1.908 trillion it ended in the preceding session.
In the same vein, the NASD Unlisted Security Index (NSI) went up during the session by 17.90 points to 3,276.98 points from the previous session’s 3,259.08 points.
The market was dominated by bargain-hunting activities due to renewed investor confidence. None of the securities on the NASD ended in red yesterday.
However, Central Securities Clearing System (CSCS) Plc gained N1.97 to close at N21.71 per unit compared with Wednesday’s price of N19.74 per unit, FrieslandCampina Wamco Nigeria Plc appreciated by 15 Kobo to end at N37.95 per share, in contrast to midweek’s value of N37.80 per share, and Geo-Fluids Plc grew by 8 Kobo to settle at N1.70 per unit versus the preceding day’s price of N1.62 per unit.
During the trading day, the volume of securities transacted by the market participants increased by 19,558.9 per cent to 206.2 million units from 1.05 million units, the value of transactions jumped by 13,509.2 per cent to N354.1 million from N2.6 million, and the number of deals rose by 245.5 per cent to 38 deals from 11 deals.
When trading activities finished for the day, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units sold for N520.9 million, followed by Geo-Fluids Plc with 250.9 million units worth N441.0 million, and Okitipupa Plc with 153.6 million units valued at N4.9 billion.
Also, Okitipupa Plc remained the most active stock by value (year-to-date) with 153.6 million units valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 14.9 million units worth N573.2 million, and Impresit Bakolori Plc with 533.9 million units valued at N520.9 million.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN