Zambia Daily Mail’s Post

The Nigeria government has issued $2.2 billion bonds in 2 tranches, with a 6.5 year bonds coupon at 9.625% and a 10-year bonds coupon at 10.375%.  The bonds issue received more than $9 billion of orderbook.  Read - https://lnkd.in/gDt6w-Yc follow Caproasia | Driving the future of Asia The Nigeria government has issued $2.2 billion bonds in 2 tranches, with a 6.5 year bonds coupon at 9.625% and a 10-year bonds coupon at 10.375%.  The bonds issue received more than $9 billion of orderbook.  Announcement (2/12/24): “Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, Middle East and participation from Nigerian investors, which it views as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.  The transaction attracted a peak orderbook of more than US$9.0 billion. This underscores the strong support for the transaction across geography and investor class. With respect to investor class, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.”

The Benefit Of Investing In Hard Currency At the beginning of this year a client in Lagos, Nigeria wanted to add $20,000 to his investment portfolio which at the then exchange rate meant a contribution of 17,620,000 Naira. We discussed strategy and agreed that he should invest in an S&P500 tracker which suited his risk profile and fitted in with his current fund mix. So here we are in mid- December and the S&P has risen from 4742 to 6056 =27.7% return- Not a bad gain in less than 12 months.. Looking at the currency though the Naira has almost halved in value during the same period and his investment in Naira terms including gain is now worth 41,783,440 Naira. An exceptional gain. Will it happen next year? – maybe not there has been a monumental weakening of the Naira versus the USD in this last twelve months. Will the S&P produce 27%? Unlikely but who knows, with a combination of Trump, lower interest rates and a stronger dollar there are some positive signs. Do I advise my clients in Africa to invest some of their portfolio in hard currency – you bet I do. If you want to discuss your investment strategy for 2025 you can reach me at andrew.hosking@holbornassets.com

The Nigeria government has issued $2.2 billion bonds in 2 tranches, with a 6.5 year bonds coupon at 9.625% and a 10-year bonds coupon at 10.375%.  The bonds issue received more than $9 billion of orderbook.  Read - https://lnkd.in/gSfFbH9q follow Caproasia | Driving the future of Asia The Nigeria government has issued $2.2 billion bonds in 2 tranches, with a 6.5 year bonds coupon at 9.625% and a 10-year bonds coupon at 10.375%.  The bonds issue received more than $9 billion of orderbook.  Announcement (2/12/24): “Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, Middle East and participation from Nigerian investors, which it views as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.  The transaction attracted a peak orderbook of more than US$9.0 billion. This underscores the strong support for the transaction across geography and investor class. With respect to investor class, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions.”

From Investment IQ. Emerging market sovereigns that have restructured their debt present a new set of opportunities for fixed income investors. Countries like Zambia, Ghana, and Sri Lanka have posted strong returns following recent restructurings, with innovative bond features tied to economic performance. Vanguard 🔗 Read the full article on Investment IQ: https://incm.pub/4fMgPsY #investing #assetmanagement #wealthmanagement #finance

From Investment IQ. Emerging market sovereigns that have restructured their debt present a new set of opportunities for fixed income investors. Countries like Zambia, Ghana, and Sri Lanka have posted strong returns following recent restructurings, with innovative bond features tied to economic performance. Vanguard 🔗 Read the full article on Investment IQ: https://incm.pub/4fK4tkW #investing #assetmanagement #wealthmanagement #finance

Nigeria is becoming increasingly less attractive to investors as private capital flocks Kenyan and South African markets. The erstwhile largest economy accounted for a paltry 23% of private capital into Africa in the third quarter of 2024, highlighting a waning interest and reduced confidence in the business climate of a country that houses over 220 million people. How then can the naira and the economy, at large get a breather with a dwindling capital inflow? https://lnkd.in/dksPSBcs

🏦 VFE has made significant progress in addressing the gap in Zimbabwe's capital markets by introducing the Bond Market Association of Zimbabwe, which paves the way for fixed income securities that were previously missing. This development will pave the way for a more robust and comprehensive investment landscape.🏦 By incorporating fixed income securities into the market, VFE will create new opportunities for investors to diversify their portfolios and access stable income-generating instruments. This expansion not only enhances the overall stability and attractiveness of Zimbabwe's capital markets but also provides a valuable avenue for both local and international investors to participate in the country's economic growth🌏.

Why Nigeria is a Goldmine for Global PE Firms 🇳🇬 At Myrader Ltd, we're seeing a surge in global private equity (PE) interest in Nigerian companies. Here's our analysis of why Nigeria is such a hotbed for PE activity: Thriving Consumer Market: Nigeria's young & growing population, with rising disposable income, creates a massive consumer base – a goldmine for PE firms. Untapped Potential: Undervalued companies across exciting sectors like FinTech, agriculture, and healthcare present PE firms with high-growth opportunities. Government Support: Initiatives to attract foreign investment and streamline regulations are making Nigeria more PE-friendly. High ROI Potential: The chance for solid financial returns compared to developed markets is a significant draw for PE firms. Bridging the Gap: Many promising Nigerian companies need help with traditional bank loans. PE firms can be the fuel for their expansion. ⛽️ Exit Strategies: A developing stock exchange and M&A market offer PE firms ways to cash out on their investments. Challenges to Consider: Infrastructure, political uncertainty, and currency volatility require careful consideration. Overall, Nigeria presents a lucrative frontier for PE firms. As the market matures, these companies will become even more attractive, driving significant economic growth for Nigeria. 🇳🇬 #PrivateEquity #Nigeria #Africa #Investment #EmergingMarkets Myrader Ltd offers expert research and advisory services to PE firms navigating the African market. Let's connect in the comments to discuss how we can help you unlock Nigerian opportunities!

#Position Paper: Comparing Nigeria and South Africa's Stock Exchanges_ _Introduction_ The significant disparity between Nigeria and South Africa's stock exchanges warrants attention and analysis. This position paper explores the differences in market capitalization, challenges facing Nigeria's capital market, and recommendations for growth. _Key Findings_ 1. _Market Capitalization_: The Johannesburg Stock Exchange (JSE) is valued at $1.2 trillion, while the Nigerian Stock Exchange (NSE) is valued at $80 billion. 2. _Banking Sector_: One bank in South Africa can buy all the banks in Nigeria, and still have change. 3. _Corporate Dominance_: One company in South Africa can buy every company in the Nigerian stock exchange. _Challenges Facing Nigeria's Capital Market_ 1. _High Interest Rates_: The Central Bank of Nigeria (CBN) sets high interest rates, hindering economic growth. 2. _Retroactive Taxing_: Taxing Nigerian banks can negatively impact the economy. 3. _Foreign Dominance_: 99% of leading startups in Nigeria are Delaware (USA) companies, which may not list on the Nigerian stock exchange. _Recommendations_ 1. _Expand Opportunities_: Leaders should focus on expanding opportunities rather than taxing the existing small market. 2. _Mandatory Lending_: The government should mandate banks to lend 70% of their FX-anchored vapor gains at half of their typical interest rates to boost the economy. 3. _Encourage Local Ownership_: Incentivize local ownership and listing of startups on the Nigerian stock exchange. _Conclusion_ Nigeria's capital market faces significant challenges, including high interest rates, retroactive taxing, and foreign dominance. To address these issues, leaders must focus on expanding opportunities, mandatory lending, and encouraging local ownership. By implementing these recommendations, Nigeria can bridge the gap with South Africa's stock exchange and foster economic growth.