Nigerian Capital Market Update

pwc Nigerian Capital Market Update - September 2020 Overview Equities market Debt market Activities in the domestic bond market increased significantly year-on- year as corporates continue to take advantage of the relatively low yields in the market to refinance existing debts and fund business expansion, amongst others. A total of 152.7 billion was raised in seven corporate bond issuances in H1 2020 compared to N54 billion raised in three issuances in the corresponding 2019 period. Out of the corporate bond issuances in H1 2020 was the landmark issuance by Dangote Cement in its N300 billion bond programme, raising N100 billion in the first series. The offer, which was oversubscribed by 55%, is the largest corporate bond issued in the Nigerian capital market to date. Also, there is renewed activity in the issuance of sub national bonds by state governments to fund key infrastructure projects as they redeem their ongoing bond obligations. In H1 2020, the Lagos State and Ondo State governments issued N100 billion and N14.8 billion, respectively to part-finance social projects in the states. Meanwhile, the domestic debt market is about to witness its third supranational bond issuance with the registration of a N300 billion domestic bond programme by the Africa Export-Import Bank (Afreximbank). This is coming after the IFC's N12 billion domestic bond issuance in 2013 and the AfDB's N12.95 billion issuance in 2014. According to filings with the Nigerian SEC filings, Afreximbank is expected to use the bond proceeds to fund its domestic operations in Nigeria. Commercial papers Nigerian capital market: summary of major events year-to-date What lies ahead About us Nigerian capital market update - September 2020 PwC N'Billion 180 Corporate Bond Activity (2014 - H1 2020) 16 20 130 15 80 9 10 7 6 6 5 5 30 # of transactions 76.5 84.6 88.4 54.7 179.5 162.5 152.7 -20 2014 2015 2016 2017 2018 2019 H1 2020 0 Corporate bond value (N'bn) Corporate bond volume Source: NSE and FMDQ September 2020 5

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