Stanbic IBTC Capital, the investment banking subsidiary of Stanbic IBTC Holdings, has been recognised as the ‘Best Local Currency Bond House’ at the EMEA Finance Awards for the second consecutive year.

This award highlights the company’s outstanding performance and pivotal role in the Nigerian capital markets.

In addition to the ‘Best Local Currency Bond House’ award, Stanbic IBTC Capital also earned four other recognitions at the EMEA Finance Achievement Awards ceremony, which was held in London on Thursday, 06 May 2024. These include the Best Sovereign Sukuk Programme Award for managing Nigeria’s ₦150 billion domestic Sukuk programme; demonstrating the firm’s expertise in supporting government initiatives through innovative Islamic finance.

The firm also received the Best Naira Bond award for its role in Flour Mills of Nigeria’s ₦46 billion 3-year Fixed-rate Bond issuance, demonstrating its proficiency in navigating the local debt market and supporting the strategic growth of its corporate clientele.

Finally, the Best Project Bond in EMEA Award was conferred on Stanbic IBTC Capital for acting as Lead Issuing House and Adviser in Lagos Free Zone’s ₦17.5 billion 20-Year InfraCredit Guaranteed Issuance. These awards collectively affirm Stanbic IBTC Capital’s market leadership position in the investment banking sector and its commitment to providing innovative investment banking solutions that drive economic growth and development in Nigeria.

Oladele Sotubo, Chief Executive of Stanbic IBTC Capital, expressed gratitude for the recognition from EMEA Finance, thanking the company’s clientele for their trust.

“We remain deeply thankful to our clients for their continued trust and partnership. Their support enables us to deliver innovative investment banking solutions that meet their needs and drive Nigeria’s growth.

He emphasised that the company’s Investment Banking team aims to uphold the highest standards of service and expertise; with the intention to always exceed clients’ expectations, in line with Stanbic IBTC Group’s values, two of which are delivering to stakeholders and constantly raising the bar.

The EMEA Finance Award is a highly respected and competitive annual event that recognises the best financial institutions and transactions across Europe, the Middle East, and Africa (EMEA).

Stanbic IBTC Capital’s multiple wins underline its position as a leading investment banking and advisory firm in the Nigerian and broader African markets.

Retail lender, Unity Bank Plc has projected a Profit After Tax of N5.2 billion in Q3, 2024, according to its latest earning forecast released to the Nigerian Exchange Group.

The lender projects a pre-tax profit of N5.7 billion while targeting a turnover of N26.93 billion in gross earnings during the quarter, an 8.2% increase from the Q2, 2024 projection of N24.89 billion.

An essential part of the earnings forecast also shows that the lender expects to record its interest income at N23 billion, with net revenue anticipated to hit N6.58 billion for the period. Operating income is expected to rise to N13.38 billion, while cash flow from financing activities is projected to rise to N353.6 billion.

Moreover, the improved projected cash from financing activities and the expected increase in cash and cash equivalents highlight the lender’s strong liquidity position, which is critical for sustaining current and future business operations.

The lender stated that it expects the results to be achieved and surpass the projection, barring any unforeseen significant changes in the operating macroeconomic environment under which assumptions underlying the forecast were made.

Analysts believe that the positive outlook of the lender’s Q3, 2024 earnings forecast reflects strategic growth in key financial metrics, a focus on strengthening its income base, efficient financial management, and enhancing customer deposits geared towards maintaining a strong, stable, and profitable financial institution.

Fitch Ratings has revised the outlook on Fidelity Bank Plc’s Long-Term Issuer Default Rating (IDR) to Positive from Stable, while affirming the rating at ‘B-‘.

The credit rating agency has also affirmed Fidelity Bank’s National Long-Term Rating at ‘A(nga)’ with a Stable Outlook.

In a statement released on Friday, Fitch said that the outlook revision reflects its, “expectations that the bank’s capitalisation will strengthen in the near term as a result of core capital issuances, including to meet the new paid-in capital requirement of N500 billion for banks with an international licence effective by end-1Q26.”

According to the statement, “Fidelity’s IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b-‘. The VR balances the concentration of operations in Nigeria’s challenging operating environment, very high credit concentration and high Stage 2 loans against a growing franchise, sound profitability metrics, good capital buffers and reasonable foreign-currency (FC) liquidity coverage.

“Fidelity’s National Ratings are driven by its standalone creditworthiness. They balance a growing franchise and good capital buffers against weaker profitability than higher rated peers.”

The rating agency said that Fidelity is Nigeria’s sixth-largest bank, as it accounted for 5% of domestic banking system assets at end-2023, adding that strong balance-sheet growth in recent years has increased bank’s market shares and that it expects these to increase further but remain below those of the five largest banking groups.

On factors that could lead to negative rating action/downgrade, the agency said: “A sovereign downgrade could result in a downgrade of Fidelity’s VR and Long-Term IDR if Fitch believes that the direct and indirect effects of a sovereign default would be likely to have a sufficiently large effect on capitalisation and foreign-currency liquidity to undermine the bank’s viability.

However, this is unlikely considering the Positive Outlook on Nigeria’s Long-Term IDRs.

In a landmark deal, Nigeria’s largest ethical banking institution, The Alternative Bank have signed a pioneering deal, valued at over N 14 billion, with the Niger state government to finance the delivery of 5000 electric tricycles to drive social impact, youth empowerment, business growth, and economic prosperity in the Power State.

The landmark deal will see the Niger State government, through its ministries of Transportation, Youth, Women Affairs, and Small and Medium Enterprises, procure the tricycles for the programme,

lease them to beneficiaries, establish an assembly and maintenance plant, and train resident youths of the state as mechanics to service the tricycles. With the charging and battery swap stations for the electric tricycles to be installed at strategic locations such as schools, hospitals and markets across major towns in the state.

The Executive Governor of Niger State, His Excellency, Governor Mohammed Umar Bago, commented by saying that this deal is one step towards the upliftment of the state towards realising its full economic potential and making Niger a “green” State.

Governor Bago said the choice of the Alternative Bank as the partner for this project is due to its innovative approach towards wealth creation, with the bank taking a joint-investor and partner-in-progress approach to financing projects, as opposed to the traditional commercial model of being just a lender.

Speaking at the deal-signing ceremony, Alhaji Garba Mohammed, Executive Director at The Alternative Bank, said that “this project, as conceived, will provide solutions to aid the economic involvement of the women, youth and small businesses by generating commercial value for the people and the government, safeguarding the environment through the use of renewable and sustainable energy sources as a driver of transportation with the great state of Niger.”

He continued by saying that “this will be the single largest delivery of electric vehicles across the country, and on the African continent.” He concluded by stating that “unlike vehicles powered by internal combustible engines consuming petrol, compressed natural gas and other fossil fuels, these 5000 tricycles will contribute to the reduction of pollution in Niger State, aligning perfectly with The Alternative Bank’s commitment to wealth creation, social growth, and environmental responsibility.”

This deal comes in swiftly on the heels of the Alternative Bank’s recent delivery of 120 electric tricycles to the Mata Zalla and Yar Baiwa co-operatives in Kano State. The details of the project’s delivery saw the bank deliver tricycles to the women of the cooperatives, train them on servicing and maintenance of the vehicles, as well as create a battery swapping terminal within the Kano metropolis for easy recharging of the tricycles for continued operation.

The outcomes of the recently launched program include economic inclusion and independence for the women, increased transportation options for residents of the metropolis, reduced transportation costs within the vicinity due to the energy cost efficiency of the electric powered, improved security and safety for women commuters within the region, and a considerable net positive environmental impact due to the renewable energy powered nature of the tricycles.

About The Alternative Bank:

The Alternative Bank commenced its journey in January 2014 with a vision to create a dynamic banking experience that respects individuality and speaks the language of its customers. In July 2023, the Central Bank of Nigeria issued a Banking License to The Alternative Bank, enabling it to operate as a fully-fledged, standalone bank. Guided by its Advisory Committee of Experts (ACE), The Alternative Bank ensures all its operations align with the ethics of Non-Interest Banking.

Stanbic IBTC is delighted to announce the launch of its scholarship programme for the 2023/2024 academic year. The initiative is designed to support and invest in the educational development of exceptional Nigerian youths. Through the initiative, scholarships will be awarded to 200 students across the country, thus reaffirming Stanbic IBTC’s commitment to supporting education and providing opportunities for outstanding students to achieve their academic dreams.

Building on the success of last year’s programme, this year’s scholarship targets students who have demonstrated academic excellence. To qualify, students must have a UTME score of 250 and above, at least five credits in O’Level (WAEC or NECO), and proof of admission to a Nigerian federal or state university. The scholarship aims at relieving financial burdens and inspire students to strive for excellence in their academic pursuits.

Stanbic IBTC is also excited to announce that the award ceremony for the scholarship recipients will be a hybrid event, allowing participants to join either physically or virtually. The inclusive approach ensures that students, parents, and stakeholders from all regions can partake in the celebrations.

Dr. Demola Sogunle, Chief Executive at Stanbic IBTC Holdings, emphasised the importance of the initiative, stating, “At Stanbic IBTC, we strongly believe in the transformative power of education. Our commitment to this cause is clearly demonstrated through our scholarship programme, which is designed to nurture and develop the potential of Nigeria’s youth. Our mission is to provide these talented individuals with the resources and support they need to excel academically. We encourage eligible students to take advantage of this opportunity by applying to our programme. This step could be the key to unlocking their academic aspirations and achieving their goals.”

Dr. Sogunle further emphasised the importance of the initiative, explaining how the organisation plans to empower young people through comprehensive educational programmes. He said, “Our efforts aim at equipping young people with knowledge, inspiring innovation, and foster a spirit of leadership, ensuring they have the necessary tools and support to make positive changes in their communities and beyond.”

Applications for the 2023/2024 university scholarship are currently ongoing and close on Sunday, 30 June 2024.

Interested students are encouraged to visit www.stanbicibtc.com for more information on how to apply.

L – R: Stanley Amuchie, Executive Director, Chief Operations & Information Officer, Fidelity Bank Plc; Oladele Sotubo, MD/CEO Stanbic Capital; Dr Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc; Mustafa Chike-Obi Chairman, Fidelity Bank Plc; Ezinwa Unuigboje, Company Secretary, Fidelity Bank Plc; and Jubril Enakele, Chief Executive, Iron Global Markets Limited at the signing ceremony of the Fidelity Bank Public Offer and Rights Issue at the Bank’s head office in Lagos recently.

Fidelity Bank Plc has concluded all necessary arrangements to raise a total of up to ₦127,100,000,000.00 (One Hundred Twenty-Seven Billion, One Hundred Million Naira) by way of a Rights Issue to existing shareholders and a Public Offer (the Combined Offer).

The Combined Offer is a part of the Bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN) on 28 March 2024. Overall, the Bank expects that the capital raised would support the Bank’s efforts to drive sustained growth and diversification of its earnings base.

The Signing Ceremony with respect to the Combined Offer was held at the Board Room of the headquarters of Fidelity Bank in Lagos on Wednesday, June 5, 2024. The Bank’s shareholders had already approved the Rights Issue and Public Offer at the Extra-Ordinary General Meeting held on Friday, August 11, 2023.

Under the Rights Issue, 3,200,000,000 (Three Billion Two Hundred Million) ordinary shares of 50 kobo each will be offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024, at ₦9.25 per share. For the Public Offer, 10,000,000,000 ordinary shares of 50 kobo each will be offered to the general investing public at ₦9.75 per share.

Stanbic IBTC Capital is the Lead Issuing House to the Combined Offer, whilst the Joint Issuing Houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited. The Acceptance and Application lists for the Rights Issue and Public Offer are expected to open on Thursday, June 20, 2024 and close on Monday, July 29, 2024.

At the Signing Ceremony, Managing Director and Chief Executive Officer, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, disclosed that the proceeds of the Combined Offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.

The Chief Executive of Stanbic IBTC Capital, Oladele Sotubo, commended Fidelity Bank’s management team for their commitment towards executing the Combined Offer. He lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks.

While thanking the Bank for trusting Stanbic IBTC Capital to lead and advise on this landmark transaction, Dele expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.

The rights circular for the issue, which contains a Provisional Allotment Letter and the Participation Form, will be mailed directly to shareholders of the Bank. Printed copies of the Public Offer Prospectus can be obtained at the offices of Fidelity Bank and the Issuing Houses during the Public Offer Application Period.

All existing shareholders and prospective investors are encouraged to read the Rights Circular and Prospectus and, where in doubt, consult your Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.