Benjamin Omoike
Stanbic IBTC Holdings PLC, Nigeria’s foremost end-to-end financial solutions provider, has reaffirmed its commitment to the growth of the Nigerian debt capital markets.
Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Bank PLC, disclosed this at the Bonds, Loans and Sukuk Nigeria Conference, which held recently at the Eko Hotel and Suites, Victoria Island, Lagos.
Dr. Sogunle noted that the Stanbic IBTC group was constantly driving innovation to encourage growth and development in the markets.
The Stanbic IBTC Chief Executive added that the organisation would continue to facilitate value added engagement between market participants, to further increase understanding of the initiatives required to grow the debt capital markets in the country.
In 2019, Stanbic IBTC won several awards such as the Best Foreign Investment Bank, Best Debt House, Best Equity House and Best Loan House in Nigeria at the EMEA finance African Banking Awards.
Stanbic IBTC was also awarded as Africa’s Best Investment Bank at the Euromoney 2019 Awards of Excellence. The Association of Issuing Houses Nigeria also recognised the bank as the Best Investment Bank and Commercial Paper House. According to Dr. Sogunle, these achievements are a demonstration of the organisation’s position as a leading, end-to-end, financial services provider in Nigeria.
While speaking on how the Nigerian debt capital markets fared in 2019, he said capital markets activities were at its peak in the months of May, June and July. He added that N439bn incorporate paper has been issued in comparison with N470bn over the same period in 2018.
He said: “We expect the total volume issued in 2019 to eclipse 2018 as markets have seen yields fall to levels unseen since 2015 and a number of issuers are gearing up to take advantage to lock in lower funding rates for extended tenors. Despite the undulating nature of the market, there has been increased sophistication, amongst issuers, of the different financing options available in the local debt markets with issuers effectively timing capital markets issuance to maximise cost savings relative to bank debt. We have witnessed an increasing number of corporate issuers exploring alternative funding options such as Green Bonds and Infrastructure Bonds, in addition to conventional bonds, commercial paper and Eurobonds.”
The Bonds, Loans and Sukuk Nigeria Conference, organised by GFC Media, is regarded as Nigeria’s only annual debt finance event, covering developments of both on-shore and off-shore markets. With an audience of over 250 government officials, corporates, banks, funds and advisors, the event connects fundraisers with lenders and investors within the Nigerian capital markets space.
It has been successful in bringing together all parties and stakeholders in the Nigerian debt capital markets to discuss real issues and developments affecting the local bond and loan markets.
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