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Nigeria: Stock Market Maintains Positive Trend, Appreciates By N480.8 Billion in Three Days

nigeria stock market maintains positive trend appreciates by n480 8 billion in three days

The Nigerian equities market sustained its positive trend yesterday amid price appreciation in large-mid capitalised stocks extending gains to three days

The stock prices appreciation in the likes of GTCO Plc, Dangote Cement Plc, among others impacted on the Nigerian Exchange Limited (NGX) market capitalisation, gaining N480.8 billion in three days.

At the close of business, the market capitalisation went up by N21.67billion to close at N20.575trillion as against N20.553 trillion it opened for trading.

THISDAY had report that the stock market on Wednesday appreciated by N317.5billion and it also gained N141.6 billion on Tuesday.

The N21.67 billion gained in yesterday’s trading was buoyed by investors’ buy-sentiment in GTCO, Zenith Bank Plc and Dangote cement.

Consequently, the NGX All Share Index (ASI) gained 0.11 per cent yesterday to close at 39,490.06 basis points from 39,448.46 basis points the previous day.

The stock market upturn brings its performance in Month-to-Date increased to 2.5 per cent, while Year-to-Date loss moderated to -1.9per cent.

On sectors, the Insurance (-1.8 per cent), Banking (-0.2 per cent) and Oil & Gas (-0.2 per cent) indices recorded declines, the Industrial Goods (+0.4 per cent) index gained, while the Consumer goods index closed flat.

As measured by market breadth, market sentiment was positive, as eight stocks gained, relative to 24 losers.

Honey well Flour Mills plc recorded the highest price gain of 10per cent, to close at N1.87 per share.

Wema bank plc followed with a gain 3.95 per cent to close at N0.79, while Flour Mills gained 3.96 per cent to close at N2.29, per share.

AIICO Insurance appreciated by 2.11 per cent to close at N0.97, while GTCO appreciated by 1.07 per cent to close at N28.40 kobo, per share.

Tripple G top the losers table to close at 0.88 after shedding 9.28

Regal Insurance was also down by 8.51 per cent to close at 0.43 kobo, while Prestige Assurance lost 8.33per cent to close at 0.44, per share.

Japaul gold shed 7.48 per cent to close at 0.47 kobo, while NEM Insurance depreciated by 6.34 per cent to close at 1.92 kobo, respectively.

The market turnover closes positive as volume moved up by 214.30per cent as against 61.77per cent downtick recorded in the previous session.

Honey flour mills was the most actively traded stock with about 384million units of shares worth about N654million.

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Zimbabwe: Tongaat Records 31 Percent Sales Increase

zimbabwe tongaat records 31 percent sales increase

ZIMBABWE Stock Exchange (ZSE) listed agro-industry giant, Tongaat Hullets (TH), has reported a healthy 31% surge in sugar sales this year, crediting the increase to current economic policies which it says have helped ease inflationary pressure while improving the exchange rate stability.

Since last year, the Reserve Bank of Zimbabwe (RBZ) has been undertaking a raft of measures which include the mopping up of excess liquidity and introduction of the Foreign Exchange Auction system among other measures.

These have resulted in relatively slowing down inflation and improving trade among other notable improvements.

Presenting the trading update for the first quarter ended June 30 2021, THZ chairman, Canaan Dube said the period under review was characterised by positive economic indicators.

“Annual inflation continued on a downward trajectory to 107% by 30 June 2021. The Zimbabwe dollar exchange rate has been relatively stable and industry continued to transact in multi-currencies on the local market, ensuring improved foreign currency liquidity within the formal economy. Total industry sugar sales into the domestic market for the quarter at 86 843 tons were 31% above the same period prior year,” Dube said

He attributed the performance to a combination of strong demand and the non-repeat of supply containment measures implemented in prior year to curb then existing speculative trading on account of price distortions.

“Price realisations in both local and foreign currency on the local market remained ‑firm in current purchasing power terms,” said Dube.

The remarks coincided with total foreign exchange auction allotments reaching US$44 million this week.

Demand for foreign currency rose with a total 1 092 bids being submitted up from around 600 bids which were submitted for most part of the year’s first half.

Raw materials, machinery and equipment needs were allotted US$14 million and US$7,9 million respectively on the main auction platform.

The two priorities were also allotted US$2, 3 million and US$2,5 million on the Small to Medium Enterprises auction platform.

The SMEs platform received US$10, 7 million while the Main Auction received US$33,3 million.

Meanwhile, during the first quarter, THZ delivered 7 000 tons of maize to the Grain Marketing Board (GMB), significantly improving food security in the region.

In addition, 1 216 tons of seed maize was produced in partnership with the country’s major seed house, SeedCo while a total of 700 hectares are currently under winter wheat and sugar beans.

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Nigeria: Agency Issues 21-Day Eviction Notice to Markets in Kaduna

nigeria agency issues 21 day eviction notice to markets in kaduna
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The Kaduna State Urban Planning and Development Authority (KASUPDA) says a new ultra-modern pharmaceutical market will be built in the area.

The Kaduna State Urban Planning and Development Authority (KASUPDA) has issued a 21-day eviction notice to occupants of some markets in Kaduna metropolis.

In a statement on Wednesday, the spokesperson of the agency, Nuhu Garba, said the area was being used for a purpose contrary to the title given for it.

He said an ultra modern pharmaceutical market would be established in the place.

“The construction of a new ultra-modern pharmaceutical market at the area is in line with the State Government’s Urban Renewal, Urban Reformation and City Beautification Initiatives,” he said.

The agency advised the affected persons operating businesses in the area, who had been issued eviction notice, to comply with the directive.

KASUPDA further said that the provision of a pharmaceutical market in the area was not meant to displease anybody, but for development and future generation.

It pledged to work for the well-being of residents, and therefore solicited for their co-operation and understanding. (NAN)

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Nigeria: Stock Market Maintains Positive Trend, Appreciates By N459.12 Billion in Two Days

nigeria stock market maintains positive trend appreciates by n459 12 billion in two days

Transactions on the Nigerian equities market yesterday closed on a positive note to maintain the previous day’s bullish sentiment, as investors investment soar by N459.12 billion in two days.

The stock market in the previous day appreciated by N317.5billion and yesterday it also gained N141.6 billion.

Yesterday’s trading upturn was buoyed by investors’ buy-sentiment in some blue-chip stocks like Airtel Africa, GTCO, Zenith Bank Plc and Oando Plc.

Consequently, the Nigerian Exchange Limited (NGX) All Share Index (ASI) increased by 271.84 basis points, representing a growth of 0.69 per cent to close at 39,448.46 basis points from 39,176.62 basis points.

Similarly, the market capitalisation gained N141.6 billion to close at N20.553 trillion from N20.412trillion.

In addition to the two days appreciation, stock market performance Month-to-Date increased to +2.3per cent, while the Year-to-Date loss moderated to -two per cent.

Analysing by sectors, the Banking (+0.5per cent) and Oil and gas (+0.1 per cent) indices recorded gains, while the Insurance, Industrial Goods, and Consumer Goods indices closed flat.

As measured by market breadth, market sentiment was positive, as 20 stocks gained, relative to 15 losers. Pharma Deko recorded the highest price gain of 9.17 per cent, to close at N1.19, per share. Neimeth International Pharmaceuticals followed with a gain 8.61 per cent to close at N1.64, while Ikeja Hotel appreciated by 7.69 per cent to close at N1.40, per share.

Livestock Feeds went up by 6.84 per cent to close at N2.03, while Linkage Assurance appreciated by 6.78 per cent to close at 63 kobo, per share. On the other hand, FTN Cocoa Processors led the losers’ chart by 8.89 per cent to close at 41 kobo, per share. Wema Ban followed with a decline of 7.32 per cent to close at 76 kobo, while May and Baker Nigeria lost 6.38 per cent to close at N4.40, per share.

Mutual Benefits Assurance shed 5.56 per cent to close at 34 kobo, while Veritas Kapital Assurance depreciated by 4.17 per cent to close at 23 kobo, respectively.

The total volume of trades declined by 61.8 per cent to 181.42 million units, valued at N2.08 billion, and exchanged in 3,599 deals.

Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 20.488 million shares valued at N19.342 million. ETI followed with 17.542 million shares worth N97.995 million, while FCMB Group traded 15.311 million shares valued at N48.209 million.

Sterling Bank traded 14.137 million shares valued at N22.239 million, while United Bank for Africa (UBA) transacted 10.939 million shares worth N83.386 million.

Analysts at Afrinvest Limited said:”We expect the bullish performance to be sustained in the next trading session, as investors continue to trade on company specific fundamentals.”

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South Africa: Outgoing Satrix CEO Helena Conradie Talks Shares, Funds and Financial Inclusion

south africa outgoing satrix ceo helena conradie talks shares funds and financial inclusion
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It wasn’t that long ago that investing in stocks listed on the JSE was for wealthier people, people who by virtue of their education or passed-down knowledge knew how the system worked. You needed a stockbroker and a minimum investment of at least a thousand rand or two.

First published in the Daily Maverick 168 weekly newspaper.

How things have changed. Today investors have dozens of affordable online stockbroking platforms to choose from, complete with online tutorials. These platforms range from full-service online stockbrokers to funky low-cost options like EasyEquities, where individuals can invest as little as R50 in fractions of shares – both locally and internationally.

My guest at lunch today is Helena Conradie, the outgoing CEO of Satrix, who has witnessed this change first-hand over the past 20-odd years. We are having lunch at the aptly named I Love the Dough, a pizza-house-cum-cocktail-bar located on Bree Street in Cape Town. With its candyfloss pink walls, neon signs and giant dinosaur mural, we suspect that, had the joint been full, we would easily have been the oldest people in it. Except that it wasn’t full. Just five days after restaurants were allowed to reopen and the booze ban lifted,…

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Uganda: Financial Markets, Exchange Rates Likely to Remain Stable

uganda financial markets exchange rates likely to remain stable

What are the key internal factors that have influenced swings or impacted the financial markets in the past two or so months?

In the month of June, we had the reading of the national budget. That was the single most important economic event then and it is usually a big driver of the financial markets. We have also suffered a resurgence of the Covid-19 pandemic, what the health professionals have termed the second wave. The government responded with a very restrictive lockdown to lessen the spread. This has had a significant impact on domestic trade, tourism, and hospitality. These sectors are some of the biggest sources and consumers of foreign exchange and their disruption impacts exchange rates. The other sectors that have struggled are education and the transport sector. The two sectors were driving the recovery earlier this year when schools re-opened. There is also a large knockon consumer demand. Our PMI survey continues to show that output orders have dropped and other leading indicators point to an observable impact on aggregate demand leading to very low inflation. The other event is the decision by the Bank of Uganda’s monetary policy committee to reduce its policy rate to 6.5% at their June meeting. This is now the lowest the benchmark has been since inception in 2011 and we see this loose policy keeping short end rates low.

And the external factors?

In the region, we have seen Tanzania open its financial markets to offshore investors beyond the East African region. But more importantly, the economic situation in the advanced economies is changing, with strong recoveries and higher inflation outlook. This has triggered concerns on whether the central banks will start tightening their monetary policies marking an end to the era of cheap US dollar liquidity all over the world.

Initially, the jump in inflation was considered transitory but we are seeing more Central Banks confirming a more permanent outlook of higher inflation. We are seeing more offshore investors exit their positions in our government securities on the above concerns. This is leading to a reversal of yields.

As an example, the 1-year Treasury bill which had dropped to 9.5% has now bounced back to 10.25%. On the long end,

we can see the 20 Year treasury bond which had dropped to 14.85% is now back up to 15.85%. The question is how much further can these rates go?

Basing on the aforementioned factors, how does the outlook (2022) look like for Uganda’s financial markets?

The current environment is very mixed with counter forces on either side for both interest rates and exchange rates. On the one hand, we have the national treasury seeking more from the domestic market and understandably so as tax revenues have been impacted by the lower economic activity. This should push interest rates higher, but now it is countered by the existence of a large supply of local shilling liquidity.

Banks are seated with tons of cash which they must deploy and with the current lower demand for loans, banks must put this cash into treasury securities. This creates a balance of sentiments with no clear direction in rates but more side-ways movements. In summary, we expect a lot more volatility in rates. For exchange rates, there is a lower demand for US dollars as trade activity (particularly imports) has dropped. This has supported the rally in the exchange rates, and we continue to see the Uganda shilling strengthen significantly against the US dollar. In January, the local currency was under pressure and rates climbed as high as Shs3, 725 per US dollar but they have since recovered to Shs3, 550 just this past week.In our view, this trend will continue, and we could see the Shs3, 450-level trade.

There are some upside risks however, especially events in the advanced economies. If the US Federal Reserve bank, as an example, starts tapering their bond purchases this year, which will point to an onset of tightening in US monetary policy, we could see some out flows of US dollars especially out of the fixed income market. That may reverse the strength of the UGX that we are currently seeing. Nonetheless, we still think the Shs3, 750 level is the worst we would see in such a scenario.

What impact will the forthcoming IPOs involving service/telecom companies likely to create on the Financial Markets in general?

I do not have full details about the IPOs beyond what we have seen in the media spaces, so it is difficult to size up the opportunity that these will present. However, the telecom sector is one of the largest sectors of the economy and it is growing at a much greater pace. The emergence of work-from-home, online schooling, digital interactions and digital transactions, the sector is on an upward growth. As such, I expect the IPOs to attract strong interest from both Ugandans and the offshore investors. Locally, the IPOs should generate strong positive vibe that should permeate into other sectors and lift the economy out of the doom caused by the pandemic. We could also receive tremendous inflows of USD as investors seek to purchase shares, especially if a significant portion of the offering is availed to institutional investors.

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Nigeria: CBN Sets N10bn Capital Base for Credit Guarantee Companies

nigeria cbn sets n10bn capital base for credit guarantee companies

The Central Bank of Nigeria (CBN) yesterday pegged at N10 billion the minimum paid-up capital for the establishment of the proposed Credit Guarantee Companies (CGCs) in the country. This was contained in a circular by the CBN titled, “Exposure Draft of Guidelines for Regulation and Supervision of Credit Guarantee Companies in Nigeria,” dated August 4, 2021, and addressed to banks, other financial institutions and stakeholders.

The apex bank stated that the framework for the CGCs would further provide regulation and basis for the operation of credit guarantee companies. The circular, which was signed by the CBN Director, Financial Policy and Regulations Department, Mr. Ibrahim Tukur, also detailed the permissible and non-permissible activities of the CGCs.

A CGC is an institution licenced by the CBN with the primary objective of providing guarantees to banks and other lending financial institutions against the risk of default by obligors.

In addition to the minimum capital base, a CGC is also required to pay a non-refundable application fee of N100, 000, non-refundable licencing fee of N1 million, and change of name fee of N50, 000.

The bank stated that the introduction of CGCs became inevitable as it sought to improve access to lending for micro, small and medium scale enterprises (MSMEs) operating in the country.

The blueprint also seeks to ultimately reduce credit risk, stimulate lower interest rates on loans, as well as complement other initiatives targeted at stimulating lending to MSMEs.

According to the apex bank, the proposed credit risks guarantee firms are expected to provide third-party credit risk mitigation to lenders through the absorption of a portion of the lender’s losses on the loans made to Nigeria-based MSMEs in case of default.

The CBN further explained that any guarantee issued by a CGC represents a legal commitment to discharge the liability of a borrower in the case of default.

Essentially, the guidelines stipulate the minimum standards for the operations of CGCs that provide credit guarantees to Participating Financial Institutions (PFIs).

While the provisions of the guidelines shall apply to CGCs licenced by the CBN, the PFIs shall comply with same provisions as it relates to their activities, the CBN added.

Nonetheless, a credit guarantee by the CGC may cover up to a maximum of 75 per cent of the default amount, the central bank pointed out.

It added that after the crystallised guarantee had been settled, the PFI and the CGC would be required to take all necessary steps to recover the outstanding sum, adding that the CGC shall be reimbursed to the extent of the recovered sum.

The CBN also stated that the cumulative guarantee liabilities of a CGC shall not exceed 10 times of its shareholders’ fund unimpaired by losses. It stressed that the CGCs shall commence operations with, and maintain at all times, a minimum paid-up capital of N10 billion or such amount as may be prescribed by the CBN from time to time.

The circular stated, among other things, “The capital adequacy ratio of a CGC shall be measured as the percentage of its shareholders’ funds unimpaired by losses to its total risk weighted assets.

“The CBN may require a CGC to maintain additional capital as the CBN considers appropriate in respect of other specific risks.”

However, CBN, among other things, barred the CGCs from provision of guarantee to MSMEs based outside Nigeria. The bank also forbade them from accepting demand, savings and time deposits or any other deposits, including provision of credit to customers.

The guarantee companies were also exempted from the management of pension funds or schemes, foreign exchange, commodity, and equity trading, as well as all forms of trading in derivatives and swaps.

The companies were prevented from collection of third-party cheques and other instruments for clearing through correspondent banks. They are not to purchase, sale, dispose, acquire or lease any real estate for whatever purpose without prior written approval of the CBN.

They were required to provide guarantee for risk assets; render advisory services for financial and business development; Invest surplus funds in government securities; and partake in other investments as may be approved by the CBN.

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Zimbabwe: ZSE to Increase Retail Participation

zimbabwe zse to increase retail participation

The Zimbabwe Stock Exchange (ZSE) says it is working on further increasing retail participation on the bourse as its newest product, the Exchange Traded Fund (ETF) ballooned by over 200 percent six months after its introduction.

Chief executive officer Justin Bgoni, said that there has been a significant growth in retail participation year to date following the introduction of new products.

In September 2020, the bourse introduced the ZSE Direct, which has managed to make investments much easier for the retail market.

The Old Mutual ZSE Top Ten Exchange Traded Fund (ETF) was also launched in January this year to diversify product offerings on the exchange.

Other initiatives implemented in the past 12 months include the ZSE Training Institute in February, which provides customised capital markets training as well as the Zimbabwe Receivables Marketplace (ZRM) in August, which is expected to provide working capital solutions through receivables discounting.

These initiatives have helped generate interest from retail investors. For years, the participation of retail investors on the capital markets has been limited against institutional investors.

“The listing of the Old Mutual ZSE Top Ten Exchange Traded Fund in January 2021, significantly increased the participation of retail investors and the overall performance of the market,” said Mr Bgoni by email.

“Going forward, the ZSE will continue to explore initiatives that promote retail participation and that aid in financial inclusion.

“Following the launch of ZSE Direct in September 2020, the ZSE is working on collaborations with different institutions to increase access of ZSE Direct to our retail investors which will ultimately increase their participation,” he said.

Figures from the ZSE show that the ETF launched with 80 million units, before rising by 79,5 percent to 143,6 million as at June 30, 2021.

The market capitalisation for the ETF has also increased by 221 percent to $257 million as at June 30, 2021 from $80 million as of January 04, 2021.

Said Mr Bgoni: “The ZSE has witnessed significant trading volumes during the first half of 2021.”

For the six months ended June 30, 2021, the bourse realised a turnover of $21 billion, whilst the total volume traded stood at 3,4 billion while total market capitalisation was $745 billion.

Meanwhile, Mr Bgoni said the bourse will make the process of dematerialisation of equities smooth to investors after the ZSE was granted a license to operate a Central Securities Depository (CSD).

The ZSE decided to launch its own depository in order to improve operational efficiencies in the market, reduce market costs to all participants, make it easier for retail investors to access the market, and facilitate the introduction of new products.

This is also in line with international best practice where an Exchange owns its depository.

“As the ZSE we will make the process smooth to the investors and minimise changes to the current arrangement.

“To put this into context, dematerialisation is a voluntary process initiated by the investor. The ZSE depository will only dematerialise securities received in certificate form from willing investors. For trading purposes however, all securities have to be in electronic form,” he said.

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Rwanda: Who Are Energicotel, Rwanda’s First SME to List On Stock Market?

rwanda who are energicotel rwandas first sme to list on stock market

On Monday, August 9, Energicotel, a local private energy development firm became the first local Small and Medium Enterprise to debut on the Rwanda Stock Exchange by listing of a Rwf6.5 billion long-term fixed rate corporate bond.

The listing of the firm, which was previously largely unknown in the local corporate circles, is likely to set a precedent for local SMEs opening up avenues for the firms to raise capital without having to seek loans from banks.

On July 26, the firm announced that they had raised Rwf3.5bn in its first tranche with a 10 year bond with a 13.75 per cent per annum interest rate meaning they had a 100 per cent subscription rate.

The first tranche which received regulatory approval from Capital Markets Authority on June 18 is aimed at enabling the firm to refinance existing debt obligations to match its borrowing with long term contracts to optimize cash flow.

The firm on Monday debuted on the stock exchange listing an Rwf6.5 billion long-term fixed rate corporate bond to become the first SME business in Rwanda to list on RSE.

This is also the first firm owned by a Rwandan and operating in the energy sector and only the third corporate bond since the inception of Rwanda’s capital market industry.

Who are Energicotel?

Energicotel is Independent Power Producer (IPP) and Engineering Consulting Company in Rwanda with power purchase agreements and concessions to upgrade, operate and maintain five micro hydropower plants.

The firm has a 25 year concession to run; Keya, Nkora, Cyimbili, Nyamyotsi 1 and Nyamyotsi 2 hydro power plants. The five plants have an installed capacity of 3.4MW supplying a supply of 17M KwH of electricity to the national grid.

Energicotel is the power-generating subsidiary of EPCA Holding Ltd, a Rwanda-based engineering and business company, which provides services to the public and private sectors in the fields of engineering, infrastructure development and business and managerial services.

EPCA is the holding company of four companies operating in the energy and infrastructure sectors across Africa with operations in Rwanda, Zimbabwe, Kenya, DRC and Malawi. Their portfolio also include Supply Chain Management, Project Management Consultancy and ICT Solutions.

The firms include; Afrilott Ltd, Century Engineering Contractors (CEC), a Civil Engineering and Electromechanical Contractor and EPCA Housing a real estate development company to construct 3,00 apartments in the next 5 years.

Energicotel’s profit after tax for 2020 stood at Rwf303m with operating profit standing at over Rwf880M. In 2019, the firm had an after tax profit of Rwf248m.

The net assets of the company stand at Rwf606m.

Growth prospects

In the firm’s prospectus, Ferdy Turasenga, Executive Director, said that going forward, they are confident on operational cash flows of the existing profitable projects of the company.

Further, he noted that the firm has various Energy Projects, all in the Renewable Energy Space, at different stages of the project development cycle in Rwanda, Zimbabwe, Kenya, DRC and Malawi.

“Energicotel has laid out a comprehensive investment plan of the Rwf6.5bn including re-investing in the existing lines of business in terms of expansion plans plus investment in diversity of Greenfields such as Methane Gas on Lake Kivu,” he noted.

The firm is also largely banking on the government’s targets to phase out thermal energy from the energy mix to reduce the cost of power for both industrialists and households.

Celestin Rwabukumba, the Chief Executive of Rwanda Stock Exchange, welcomed the development noting that subscription of the first tranche of Rwf3.5bn, is a testimony of confidence investors have in the company.

“By having Energicotel additional fundraising through this bond, we are increasing our menu and diversification for investors in our market, and the fact that the company is one of the leading IPPs in Rwanda is an added value,” he added.

Capital Markets financing is cheaper and more sustainable in the long run in comparison to debt especially for firms with long term growth prospects. This is part of the reason firms such as Energicotel would move to pay off debt obligations which would allow them to optimize future cash flows.

This makes the firm the issuer of the third corporate bond to be listed since the establishment of the RSE after the ones by the International Finance Corporation (IFC) and local lender BCR-which was acquired by I&M Bank

cmwai@newtimesrwanda.com

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Rwanda: Local Energy Firm Debuts on Rwanda Stock Exchange

rwanda local energy firm debuts on rwanda stock

Rwanda Stock Exchange on Monday officially started trading the first-ever corporate bond issued by Energicotel, a local private energy development firm.

The Minister of Infrastructure, Claver Gatete, presided over the launch of the listing of the Rwf 6.5 billion long-term fixed rate corporate bond.

The bell-ringing ceremony was also attended by several government officials, particularly from the finance sector, as well as investors.

The firm, a member of EPCA Group, is an independent power producer and an engineering consulting company.

In Rwanda, they operate three hydropower plants, with a combined installed capacity of 3.3 MW. Data from the infrastructure ministry indicates that the firm supplied 17 million kWh of electricity to the national grid last year.

“Moving to the capital markets is an essential step towards showcasing additional avenues for capital formation and providing a platform for investors to participate in the ENERGICOTEL investment plans,” said Ferdy Turasenga, firm’s executive director.

According to him, investors can expect a good return on investment since the firm has committed a 13.75 percent fixed interest rate on its first tranche.

Two weeks ago, the first tranche received a full subscription.

The funds, he said, have been earmarked for refinancing the existing bank loan, investment into operational power plants, and bond issuance-related expenses.

“We are excited to continue on our growth trajectory within the renewable energy space, with our core business of power generation and engineering consultancy” Turasenga added.

Investor confidence

Commenting on the issuance of the bond, Pierre Celestin Rwabukumba, the CEO of Rwanda Stock Exchange, said that its subscription of 80 percent and 20 percent of institutional and retail investors respectively, is a testimony of confidence investors have in the company as well as its business prospects.

“But it is also a vote of confidence in the steadily growing capital market as a platform not only for big companies or governments’ but also the SMEs and other corporates that are seeking long term and sustainable finance,” he added.

Rwabukumba shared similar sentiments with Eric Bundugu, Ag. Executive Director of Capital Market Authority, who said that the successful subscription of the bond, exhibits investors’ continued growing appetite for more and diverse products in the capital markets industry.

“It also provides a great opportunity for investors to be part of Energicotel’s continued success,” he said.

Increased resources to sector development

Speaking at the ceremony, Minister Gatete applauded the company for being the first firm in the energy and infrastructure sector generally to list a corporate bond.

“This adds more resources to energy sector development that will help to achieve the Government’s target of 100% electricity access countrywide by 2024.”

He also pointed out that it was a good signal that the market is slowly getting ready for the private sector to tap into the opportunities the market has to offer with a target to have a private sector-led economy.

Gatete highlighted that the government is currently working with the energy firm on various projects, including construction of power transmission lines, distribution lines and energy access, in most parts of the countries, connecting homes, schools, health centres and other economic activities.