Access Bank enjoys investor confidence as IFC converts debt to equity
October 28th, 2008 Tunde Brown || tunde.brown@stockmarketnigeria.com
Despite the financial crisis which has plagued the global economic landscape, churning out scandals of inconceivable proportions in the global financial sector, International Finance Company (IFC) has demonstrated exceptional confidence in Access Bank Plc. IFC, an arm of the World Bank had earlier loaned a $15 million unsecured, subordinated convertible facility to Access Bank. The facility, which has tenure of 8 years carries an option to convert up to 25 per cent on or before a stipulated point in time.
The implication of IFC’s decision to exercise its option to convert a part of its investment from one of relatively lower risk (debt) to a higher one (equity), is a resounding confidence the Nigerian bank enjoys. This move is coming at a time when governments of economic powerhouse countries in the world are voting sums in their billions to help stabilize and restore the much needed confidence in their financial sector.
In effect, a total of 71, 756,590 fresh issue of share capital was listed on the Exchange last week. Access bank has grown steadily over the years and has consistently strengthened its fundamentals with a business culture that transcend the ordinary. The meltdown in the Nigerian Stock Exchange has seen the share price oscillate this year so far between an interval of N25.50 (highest) and N9.88 (lowest). The earning per share for the company as at the end of Q1 stands at N0.37k.
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what does this translate to for the investor,i think it weakens the strenght of my shares ,abi break it down for me.i know ifc is not father chrismas
Well as an Investor ‘Niyi’you are in for a rebounce of Nigerian stock market but the problem is that it takes foreign involvement to command the signal for our market.
You see this particular lending I suspect is Euro centric. That is ifc was auctioned off by imf. Euro redominate this bank, especially France, and without getting too close I can ask you to go back to what happened in US a few week’s ago when T-build struck 20% following the 700 billion congress back bail out.
Benanke and Pualson offered a quasi specific credit support for paper stubs. That is engineering a healthy comeback of the dollar as December closes in. Over 21 trading partners deposited in US, given the currency an appreciation of 6% since then and I guarantee you that in next 60 days it will peculate for another 10%, dragging the whole dollar incentive to 16 apprecaition. Now is in my judgement the best time to be in forex.
The dumping of this weighted dollar is in the ashes of third world countries of the world. I expect more of these banks with useful dollar deposit to seek out delipadated stock markets like the Nigerian. High rise of the dollars is shortfall in many markets. Look what happened to oil…some of my friend were baying over the oil price….No men, oil people are affected by the rise of the dollars…or estimated rise of the dollars which generally signify short falls in oil prices
If we now insist on the Naira as the only unit of transaction, at least between this date and december…we would not have gained in terms of but exchange but we will be on record in terms of participation,size of particpation through our fellow Nigerians sending money to the country and through this dumping from the rest of the world via dollars. Offload the dollar…the Naira cannot handle the squeeze and strain
In essence America is exporting treasury bills and we can benefit from it through a compulsory dollar bias by way of Naira. Expect Nigerian stockmarket to do much better from now. Them guys are returning.
i bought accessbank PUBLIC OFFER ’shares’ up till date i dont know how many shares allocted to me and also i have not see my certificate,is this how shares is all about for over one year pls i need ur assistance because am not in nigeria what should i do,THANKS.
Oladele…am not in Nigeria too but I have some Machinaries at V/I…part time Attarck dogs…but I want to know if you acquired ‘attorney’s consent’ in the proceess…I mean did the expansionary clause permit litigation. There are lobbiest as well but could cost you a bit…they will deliver, promote, replace or place very ‘punitive’charges for your company.
I also wanna know if Access put a time limit for your papers, I mean does the ‘contractual aggregate’promote any sense of limit. Just dig up what you can and return to me, or make what they call deliberate effort to get this people and know thier official status of your shares and papers.
If your account is still active though, the whip is one you. You’ve got to sought things out first…but by now your numbers should have been up, I mean your papers/certificate
I paid for 149,000 units of Access bank during last 2007 public offer.I was allotted 8,000 units only.My money return has not been collected as of 13th Nov.2008.pls. kindly help to facilitate the refund of the balance of my money.pls i need my money
I paid for 10,000 units of Access Bank during last 2007 public offer.(149,000)I was allotted 8,000 units only.My money return has not been collected as of 13th Nov.2008.pls. kindly help to facilitate the refund of the balance of my money.plc i need the balance