KEY FI­NANCE UP­DATES

Financial Nigeria Magazine - - Finance -

Transcorp reports strong earn­ings growth on im­proved power op­er­a­tions

Transna­tional Cor­po­ra­tion of Nigeria Plc has re­ported that its 2017 first quar­ter rev­enue rose by 19.5 per­cent to N15.77 bil­lion from N13.19 bil­lion posted in a sim­i­lar quar­ter last year.

Transcorp re­ported 34 per­cent rev­enue growth at its power sub­sidiary, from N9.5 bil­lion in Q1'16 to N12.78 bil­lion in Q1, 2017.

Transcorp said rev­enue from its hos­pi­tal­ity op­er­a­tions de­clined by 19 per­cent due to the six-week clo­sure of the Nnamdi Azikwe In­ter­na­tional Air­port, Abuja. The com­pany said af­ter-tax profit rose 24 per­cent to N1.49 bil­lion com­pared with N1.21 bil­lion a year ear­lier. The profit growth was sup­ported by a 55 per­cent de­cline in in­come tax­a­tion.

Guin­ness Nigeria earn­ings beat an­a­lysts' es­ti­mates de­spite loss

Guin­ness Nigeria has re­ported earn­ings that ex­ceeded an­a­lysts' ex­pec­ta­tions for the nine-month pe­riod to March 2017. The com­pany said rev­enue rose 29 per­cent to N89.87 bil­lion com­pared with N69.62 bil­lion posted in the pre­vi­ous nine months.

A breakdown of Guin­ness Nigeria's rev­enue shows that its Nigeria sales ac­counted for the most of the in­crease in to­tal rev­enue. Sales in Nigeria rose 26 per­cent to N85 bil­lion, while ex­port sales rose 124 per­cent to N4.87 bil­lion.

Not­with­stand­ing the strong top-line growth, Guin­ness Nigeria re­ported a loss af­ter tax of N2.56 bil­lion com­pared with an af­ter-tax profit of N1.2 bil­lion a year ear­lier. The loss was driven mainly by sharp in­creases in cost of sales and fi­nance costs dur­ing the pe­riod un­der re­view.

IFC, Amundi to cre­ate $2 bil­lion green-bond fund for emerg­ing mar­kets

The In­ter­na­tional Fi­nance Cor­po­ra­tion and Amundi, a Paris-based as­set man­age­ment com­pany, have agreed to cre­ate a $2 bil­lion green bond, named Green Cor­ner­stone Bond Fund. The fund will be ded­i­cated to cli­mate in­vest­ments in emerg­ing mar­kets.

The IFC said it will in­vest up to $325 mil­lion in the new bond, which will buy green bonds is­sued by banks in Africa, Asia, the Mid­dle East, Latin Amer­ica, Eastern Europe, and Cen­tral Asia.

Amundi will raise the re­main­der of the tar­get fund from in­sti­tu­tional in­vestors, world­wide. The as­set man­ager will also pro­vide its ser­vices in man­ag­ing the emerg­ing-mar­ket debt. The fund aims to be fully in­vested in green bonds within seven years, the IFC said.

The global mar­ket for green bonds has ex­panded rapidly in re­cent years, reach­ing over $100 bil­lion in 2016. Nigeria and other de­vel­op­ing coun­tries are plan­ning to tap into the green bond mar­ket to raise funds for in­fra­struc­ture projects.

CBN sus­pends na­tion­wide roll­out of cash­less pol­icy

The Cen­tral Bank of Nigeria has di­rected com­mer­cial banks to sus­pend the on­go­ing na­tion­wide roll­out of its cash­less pol­icy. The apex bank did not pro­vide any rea­sons for the sus­pen­sion of the pol­icy.

In March this year, the CBN an­nounced that it would em­bark on a na­tion­wide im­ple­men­ta­tion of its cash­less pol­icy, which had been in force in only six states – La­gos, Ogun, Kano, Abia, Anam­bra, and Rivers – and the Fed­eral Cap­i­tal Ter­ri­tory.

The CBN also an­nounced that it had rein­tro­duced charges on cash trans­ac­tions, im­pos­ing new rates for de­posits and with­drawals na­tion­wide. The apex bank had planned a phased roll­out of the pol­icy na­tion­wide.

But in a cir­cu­lar is­sued to banks, the CBN di­rected banks to sus­pend the planned roll­out and re­vert to the old charges of 3 per­cent pro­cess­ing fees for in­di­vid­ual with­drawals above N500,000 and 5 per­cent pro­cess­ing fees for cor­po­rate with­drawals above N3 mil­lion.

Se­plat Petroleum reports Q1 loss as For­ca­dos pipe­line re­mains un­der force ma­jeure

Se­plat Petroleum, a Nige­rian oil and gas com­pany with dual list­ing on La­gos and Lon­don stock ex­changes, has re­ported a loss for the 2017 first quar­ter ow­ing to the con­tin­ued shut­down of the For­ca­dos oil pipe­line. The com­pany said af­ter-tax loss reached $19.14 mil­lion com­pared with $22.54 mil­lion in a sim­i­lar quar­ter last year.

Rev­enue de­clined by 43 per­cent to $47.3 mil­lion as against $83.42 mil­lion posted in Q1'16. The de­cline in rev­enue was caused by lower work­ing in­ter­est oil pro­duc­tion.

Strong gas rev­enue was the only bright spot for Se­plat, ac­count­ing for 53 per­cent of to­tal rev­enue com­pared with 32 per­cent a year ear­lier. The com­pany said it had $155.71 mil­lion in cash and cash equiv­a­lents as of March 31st, 2017.

Bounty Brands se­cures $22mn IFC fi­nanc­ing for ex­pan­sion

Bounty Brands, a lead­ing South African con­sumer goods busi­ness, has se­cured a $22 mil­lion fi­nanc­ing from the In­ter­na­tional Fi­nance Cor­po­ra­tion to sup­port the com­pany's ex­pan­sion across mar­kets in Africa and Europe.

The Cape Town-based com­pany will uti­lize the IFC fi­nanc­ing to launch new prod­ucts in its home mar­ket in South Africa as well as ven­ture into new mar­kets in Kenya, Zam­bia, Mozam­bique, Botswana, and Poland. The ex­pan­sion is ex­pected to dou­ble the com­pany's di­rect em­ploy­ees from 2,080 cur­rently to over 4,000 by 2021.

The IFC fi­nanc­ing will be in the form of a con­vert­ible loan, which can be re­deemed in cash or con­verted to com­mon eq­uity upon Bounty Brands' suc­cess­ful share list­ing on the Lon­don and Jo­han­nes­burg stock ex­changes.

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