By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, has listed what Nigeria and investors stand to gain from the derivatives market.
Speaking at the sixth edition of the exchange’s Market Data Workshop held on Wednesday, November 3, 2021, the capital market expert said one of the benefits of financial derivatives is the deepening of the capital market, which will, in turn, boost the nation’s economy.
“The innovation of financial derivatives in Nigeria and trading them through the organized Exchange will play a pivotal role in contributing to economic development by making risk manageable, enabling price discovery and reducing transaction costs for both financial and non-financial firms.
“Their continued contribution to economic growth will depend on the markets becoming more transparent and liquid, enabling end-users to generate competitive returns while effectively hedging risk,” he stated.
Mr Popoola also highlighted the importance of leveraging market data in this regard stating that, “Through cutting-edge technology, NGX continues to promote a high level of market transparency by enabling easy access to quality real-time market data to all market participants including regulators.
“Market data such as transaction prices, bids/offers and other trading information becomes the bedrock for price discovery and investment strategies.
“Derivatives traded on exchanges disseminate price information that aids both private and public entities because exchanges make contract volume and price publicly available. Such transparency helps markets function more efficiently,” the NGX boss disclosed.
The conference featured presentations and panel discussions from Dr Izzy Nelken, founder, Super Computer Consulting Inc; Mr Uwa Agbonile, CEO of InfoWARE Limited; Joshua Uwedinisu, Head, Risk Management, Zenith Bank; Dr Mary Akinyemi, Senior Lecturer, Mathematics and Statistics, University of Lagos; Mr Ayokunle Adaraalegbe, Chief Operating Officer, NG Clearing Limited; Mr Folagbade Adeyemi, Head, Start Up Operations, CSCS Plc; and Mr Olufemi Balogun, Head, Market Services, NGX.
Business Post reports that this year’s event was held virtually in collaboration with Zenith Bank, Reliance Infosystems Limited, Infoware, MTN Nigeria, CSCS Plc, United Capital, NG Clearing, Cordros, Neulogic, Apel Asset Management and ARM.
With the theme How Market Data Powers Investment Strategies Using Derivatives Products, the workshop was designed to provide capital market stakeholders – particularly institutional investors, actuaries, portfolio managers – with insights into price, valuation and investment strategies using derivatives and fixed income products, as well as technical tools that can be applied to mitigate risk.
Stanbic IBTC Begins Sale of N20bn Series 3 Commercial Paper
By Dipo Olowookere
Stanbic IBTC Bank Plc has commenced the sale of its series 3 commercial paper under its N100 billion multicurrency commercial paper programme.
The financial institution intends to sell N20 billion worth of the corporate debt instrument to interested investors in a period of one week.
Subscription for the commercial paper commenced on Thursday, January 20, 2022, and will end on Thursday, January 27, 2022, according to details of the exercise obtained by Business Post.
It was gathered that the tenor of the commercial paper is 269 days, maturing on Thursday, October 27, 2022, and it is with a discount rate of 9.00 per cent and an implied yield of 9.64 per cent.
Subscription for the Stanbic IBTC series 3 commercial paper is a minimum of N5 million and subsequent addition of N1 million.
According to the programme memorandum, the net proceeds from the paper would be used solely to support the company’s short-term funding requirements, as part of its asset and liability management strategy for its banking operations.
As for the payment at maturity, the issuer said only noteholders named in the register as at the close of business on the relevant last day “shall be entitled to payment of amounts due and payable in respect of notes.”
Stanbic IBTC Bank PLC emerged from the merger of Stanbic Bank Nigeria Limited with IBTC Chartered Bank Plc in September 2007.
IBTC Chartered Bank Plc was itself a merger of three institutions (Investment Banking &Trust Company Plc (IBTC Bank), Chartered Bank Plc. and Regent Bank Plc.).
Stanbic IBTC Bank offers its clients a wide range of commercial banking products through its 180 branches spread across every state in Nigeria, and via a range of self-service channels powered by sophisticated technology to bring convenient banking to clients.
The lender is also a key player in financial inclusion and is poised to take banking to the doorsteps of its clients in different personal and business categories who desire bespoke banking services.
Bolarinwa Emerges ACAMB President, Vows to Reposition Group
By Dipo Olowookere
The Head of Corporate Communications of Polaris Bank, Mr Rasheed Bolarinwa, has emerged as the new president of the Association of Corporate Affairs Managers of Banks (ACAMB).
He was among the new executives of the group elected at the Annual General Meeting (AGM) of ACAMB held on Thursday, January 19, 2022, at the Bankers’ House, CIBN Building, Victoria Island, Lagos.
He and other excos will pilot affairs of the umbrella association of communications and marketing professionals working in Nigeria’s banking sector for the next two years.
Others elected were First Bank’s Mr Oze K. Oze as the First Vice President, Mrs Lola Egboh of First City Monument Bank (FCMB) as the Second Vice President, while the new Secretary-General is Mr Sipe Babajide of Ecobank.
The position of Assistant Secretary-General was won by Mr Omede Odekina of the United Bank for Africa (UBA), while Mr Patrick Osilaja of Fidelity Bank emerged as the Financial Secretary.
Wema Bank’s Mrs Funmilayo Falola was elected as the new Treasurer, Mr Abdul Imoyo of Access Bank will serve as the Publicity Secretary, while Mrs Ozena Utulu of Heritage Bank will assume the role of Social Secretary.
In addition, the immediate past president of the group, staff from the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) and the Chartered Institute of Bankers of Nigeria (CIBN) will serve as ex-officios.
In his post-election acceptance speech, the new ACAMB president assured members that he would reposition the association as a foremost professional body they would all be proud of, adding that his vision also includes innovating a post-retirement strategy that ensures members have a sustainable livelihood long after exiting the industry.
“I will be committed to my vision, which is to reposition ACAMB as a foremost professional Association that encourages and ensures every marketing communications professional in the Banks aspires and attains the highest level of professional recognition and fulfilment on the job while at the same time being assured of a sustainable livelihood long after exiting the industry,” he stated.
Mr Bolarinwa, who served in the past executive as a two-term Secretary-General, restated his commitment to the upliftment of members in line with his electioneering promises anchored on the four-pillar themed PEAL: Partnership & Platform, Engagement, Advocacy, and Learning & Value-addition (PEAL).
The new President further assured that ACAMB under his leadership would seek partnerships and platforms among strategic institutions and stakeholders with a view to delivering value to members, as well as enhancing professionalism.
He also said his team would embark on advocacy aimed to deepen awareness and knowledge of the banking industry and its contributions to national socio-economic growth.
Earlier, the Chairman of the ACAMB Electoral Committee, Mr Segun Shonubi, said all aspirants for the advertised position had met minimum requirements as outlined in the association constitution and, therefore, qualified to stand for the election.
A 1996 graduate of Mass Communication, Mr Bolarinwa holds a Master’s degree from the University of Ibadan and an MSc degree from the UNESCO-certified Mass Communication department of the University of Lagos.
He is a member of numerous professional bodies, including Fellow of the National Institute of Marketing of Nigeria (NIMN); Registered Practitioner, Advertising Practitioners Council of Nigeria (APCON), and Member, Nigerian Institute of Public Relations (NIPR).
He has also attended several high-impact function-specific and leadership training at top business schools in Nigeria and overseas.