FG, Firms Raised N3.44tn Capital in Two Years, Says AIHN

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The Association of Issuing Houses of Nigeria has said that N3.44tn was raised through corporate bonds and the issuance of commercial paper by private companies and government agencies.

The President of AIHN, Ike Chioke, made this disclosure on Tuesday in Lagos during the group’s Annual General Meeting and presentation of the 2022 annual report.

Giving the group’s financial position as of December 2022, he said its revenue increased by 31 percent in the past three years.

According to him, “Capital raising activities in the local environment consolidated on the successes recorded in 2021. Notably, 333 deals valued at about N3.44tn have been recorded over the last two years in the local debt market. This largely reflects the activities of corporates in the bonds and commercial paper issuance space while also considering states sponsored instruments,” he said.

Chioke added that the group’s total assets stood at N416m in 2022 which shows an increase when compared to N361m recorded in the 2021 financial year.

“It recorded a total income of N85m in 2022, higher than the N65m it achieved in 2021. Also, the group achieved an income surplus of N54m in 2022, higher than the N36m it posted in the 2021 financial year,” he said.

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

He maintained that the investment banking segment of the market achieved this milestone in 2022, despite global and domestic macroeconomic headwinds.

“The sector sustained the momentum seen in 2021 as many economies continue to recover from the impact of Covid-19,” he added.

Chioke said that in August 2022, Dangote Industries Limited successfully closed its Series 1, dual-tranche, a bond issue of N188bn under its N300bn bond issuance programme.

“This was followed in December 2022 by the issuance of the Series 2 bond issuance of up to N112bn. This is the largest corporate bond ever seen in the Nigerian capital market.

Also, MTN Nigeria Communications Plc established an N200 billion tore issuance program 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 said.

“Recently, the Lagos State Government established a N1tn Debt and Hybrid Instruments Issuance Programme under which issued its Series 1 N115bn and Series 2 N19.82 billion bond issuances in May 2023. These transactions among many others further substantiate the increased confidence of companies and investors in our local capital market,” he added.

He said in 2022, the weak growth outlook and tighter monetary policies impacted global debt levels and the fixed-income space.

“Although debt level fell 2.2 percent year-on-year to $296.6tn in the fourth quarter of 2022, global public and private debt-to-gross domestic product ratios remained well above pre-pandemic records,” he added.

“In the Bonds space, we witnessed unprecedentedly poor returns due to normalization of policy rates, recession fears hurting credit spreads, and liquidity shocks driving up volatility,” he said.

The AIHN also used the occasion of the AGM to appoint Kemi Awodein as the new president, after Chioke’s two-year tenure elapsed.

In her acceptance speech, Awodein said she would do her best to justify the confidence reposed on her and other executive committee members by the group.

“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.” she said.

Other Executive Council Members include Dr. Gabdebo Adenrele, Vice President; Alhassan Gwarzo, Secretary of Finance and Onyebuchim Obiyemi, Secretary of Administration.

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