Ag DG SEC, Udo

 

From Ngozi Onyeakusi, Lagos
As the 2019 general election approaches, the acting Director General, Securities and Exchange Commission, (SEC), Ms. Mary Uduk has assured investors in the Capital Market that there is nothing to fear on the performance of the market.

Uduk spoke while responding to questions from journalists on the sidelines of the just concluded World Bank/IMF Annual Meetings in Bali, Indonesia.

She said the upcoming election might have made some investors to hold back their investments and sell or adopt a wait and see strategy until after the elections, but added that it is nothing to worry about.

The SEC boss explained that the major contributory factor to the current downward trend of the market is the outflow of foreign investment which has led to sell pressure accumulating into depressed prices. This she said is one of the reasons why the Commission is mapping out strategies to build confidence in the market and encourage more retail investors.

According to her “We understand the importance of foreign investors for market efficiency, liquidity and transparency. However it is also important for us to develop local investors by building their confidence and encouraging their participation.

“We have made a lot of progress in that direction like risk based supervision, zero tolerance to infractions in the market, complaint Management Framework among others. If you don’t tolerate infractions, investors will know that somebody is watching their back. We have other initiatives like e-dividend, Direct Cash Settlement which are all geared towards encouraging investors in the Nigerian capital market”.

Uduk said the SEC is exploring avenues to deepen the market, through the introduction of different products like derivatives, non interest capital market products and commodities and finalising rules on derivatives as well as have a standing Committee in developing a vibrant Commodity Ecosystem.

She also disclosed that the SEC is embracing technology innovation which is a major theme of this IMF/World Bank meeting.

She said “In terms of what we have done, we are working on automating a number of our operations, we are encouraging those we regulate to embrace technology and have minimum technological standards and encourage new innovators, especially FinTech.
“Fintech companies offering capital market products and improved processes are expected to collaborate with the Commission through some of our existing arrangement like the Regulatory Sandbox that we are currently working towards implementing”.

Uduk added that with all these efforts and several others, the Nigerian Capital Market can manage some of these risks, become deeper and realise its potentials.

Finance Corporation acquires $300million from China’s EXIM Bank
From Ngozi Onyeakusi, Lagos
Africa Finance Corporation (AFC), the leading infrastructure development finance institution in Africa, has announced its successful acquisition of a $200million 5-year loan and $100million 5-year stand-by loan facility from the Export-Import Bank of China CEXIM) for general corporate purpose.
The facility from CEXIM marks AFC’s inaugural financing facility from the People’s Republic of China (PRC).

This follows the Corporation’s strategic focus to build a broad coalition of investors by diversifying its fundraising activities to include all sources of institutional capital in East Asia, in addition to its existing partners in Europe & North America.

A statement from AFC said apart from the medium-term liquidity that this proposed facility will provide, it will also further provide contingent funding support, which is particularly important for liquidity risk management as well as opening up other financing and relationships with Chinese entities (both state-owned and private).

“It has also been agreed that the signing of the facility agreement shall mark the first step into what will be a long and beneficial relationship with CEXIM, including AFC’s support to CEXIM’s Africa strategy, looking at their portfolio of assets and advising them on how to optimize its loan book on the continent,” the statement added.

Samaila Zubairu, President/CEO, AFC, commented:

“In the last two decades, China has grown from a relatively small investor, to becoming one of Africa’s largest trading partners today.

“This facility is therefore not only a milestone for the Corporation and its strategy for the Far East, but also marks a natural evolution in the growing financial sophistication of China in Africa, a necessary development required to accelerate Africa’s journey towards closing the infrastructure deficit.”

Arunma Oteh Canvasses Support For Green Sukuk Financing
From Ngozi Onyeakusi, Lagos

The Vice President and Treasurer of the World Bank, Arunma Oteh has disclosed that Green Sukuk financing scheme is promising for green projects.
She made the disclosure while Speaking at the International Monetary Fund-World Bank Annual Meetings in Indonesia, Oteh said the world is now focusing on projects that are based on sustainability.
Oteh added: “If governments have full commitment to protect the environment, many international investors would come to invest,” adding that, therefore, the emergence of Green Sukuk could be an alternative financing scheme for green projects.
Earlier, Indonesia at the ceremony introduced Green Sukuk, an Islamic bond used for financing environmentally friendly projects.
Indonesia Finance Minister Sri Mulyani Indrawati expressed confidence that the financing scheme, which is based on Islamic teachings, would have a significant role in contributing to sustainable development.
“Our challenge is how to carry out development that is in line with sustainable principles,” the minister said at the ceremony titled “Green Finance for Sustainable Development”.
She revealed that, in March, the Indonesian government issued Green Sukuk as an instrument to collect US$1.25 billion in funds to finance environmentally friendly projects.
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