DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 1120

Ecobank Raises Additional $125m Through Eurobond Tap, Tightens Yield Amid Strong Global Investor Demand

0

Ecobank Transnational Incorporated (ETI) has announced the successful completion of a $125 million tap of its existing $400 million 10.125% Notes due October 15, 2029, bringing the total size of the offering to $525 million.

The tap, priced at a premium of 102.634, carries an effective yield of 9.375%, 100 basis points below the original issuance, highlighting improved market confidence in the Pan-African banking group.

In a press release issued on May 19, 2025, ETI stated that the newly issued Notes will be consolidated and form a single series with the original $400 million Eurobond issued in October 2024. The proceeds of the tap will be primarily used to refinance upcoming debt maturities, in line with the bank’s stated objective to optimize its capital structure.

“This tap enhances our financial flexibility and further reinforces our presence in the global capital markets,” said Jeremy Awori, Group CEO of ETI. He described the transaction as “a clear demonstration of investor confidence in our credit profile and long-term strategy.”

According to the bank, the transaction received strong support from a broad and geographically diverse investor base. Final order books were more than twice oversubscribed, with participation from institutional investors across Africa, Europe, the United States, Asia, and the Middle East. The subscriber mix included asset managers, development finance institutions (DFIs), and banks.

“The issuance supports ETI’s goal of extending debt maturity and diversifying funding sources,” said Ayo Adepoju, Group Chief Financial Officer. He emphasized that this strategic move was part of the Group’s ongoing efforts to improve its liability profile and balance sheet strength amid tightening financial conditions globally.

The bank also acknowledged the critical roles played by its financial partners in the execution of the transaction.

“We appreciate the support of Absa, the Africa Finance Corporation (AFC), Afreximbank, Mashreq, Standard Chartered, EDC, and Renaissance Capital Africa in making this transaction successful,” Adepoju added.

Favorable Pricing Signals Market Confidence

The $125 million tap was priced at a yield of 9.375%, which is significantly lower than the 10.125% yield on the original notes issued in 2024. The pricing improvement is indicative of both a favorable shift in market sentiment and ETI’s enhanced standing among international debt investors. The decision to issue at a premium—102.634—allowed the bank to raise capital at a lower cost while offering additional liquidity to the existing bondholders.

This latest issuance follows ETI’s broader refinancing strategy to extend its debt maturity profile and alleviate short- to medium-term repayment pressures, particularly in light of ongoing macroeconomic volatility across African markets.

Rising Borrowing Costs, FX Exposure Remain Risks

Despite the favorable pricing of the tap, the issuance adds to ETI’s stock of USD-denominated liabilities, which exposes the Group to foreign exchange and interest rate risks, especially in Nigeria and other African markets where currencies have seen significant depreciation over the past year.

According to ETI’s unaudited financial results for the first quarter of 2025, the Group’s total borrowed funds stood at N3.341 trillion as of March 31, 2025—slightly higher than N3.333 trillion recorded in December 2024. The Q1 2025 interest expense on borrowings amounted to N70.18 billion (US$45.94 million), marginally above the N69.54 billion (US$51.83 million) reported in Q1 2024. While the naira value of the interest expense rose, the USD figure slightly declined, suggesting the impact of exchange rate adjustments.

For the full year 2024, the Group’s total interest expense on borrowings surged to N305.7 billion (US$205 million), compared to N117.9 billion (US$182 million) in 2023. The increase was driven by a combination of higher debt levels and rising global interest rates, which affected the cost of funding for African corporates.

Strategic Debt Management Amid Volatility

The additional issuance offers ETI temporary relief in managing its upcoming maturities, but analysts caution that currency depreciation, inflationary pressures, and global monetary tightening remain challenges for the Group.

Ecobank is attempting to mitigate future volatility in interest and FX markets by refinancing at a lower yield and locking in longer-term funding. However, the bank’s growing exposure to hard currency liabilities also means that any sharp depreciation in local currencies could significantly increase debt servicing costs in local terms.

Ecobank’s management has reaffirmed its commitment to proactive balance sheet management. In an earlier note to investors, the Group said it would “continue to explore opportunities to strengthen capital buffers, manage risks, and improve resilience in the face of macroeconomic uncertainties.”

With this latest tap, ETI has not only achieved a favorable refinancing outcome but also signaled a degree of credit strength that allows it to attract diverse global capital despite tightening global financial conditions.

The outcome of this deal is expected to give the bank room to focus on growth areas across its 33-country footprint while continuing to closely monitor liquidity, FX exposure, and global debt markets.

Dangote Refinery Partners Vinmar to Export Polypropylene Globally, Eyes $1.2bn Market

0

Dangote Refinery and Petrochemicals has entered an exclusive distribution partnership with U.S.-based Premier Product Marketing LLC, a Vinmar Group company, to supply its newly produced polypropylene to markets outside Nigeria and Africa.

The announcement marks another milestone in the company’s expansion strategy, following the start-up of its polypropylene facility in Lekki, Lagos, two months ago.

The deal, announced in a joint statement by Dangote Industries and Vinmar International LLC, coincides with the official launch of polypropylene production at the Lekki complex. With this move, Dangote aims to position its polypropylene as a globally competitive product, manufactured using INEOS’s INNOVENE technology to deliver high-grade materials for packaging, automotive parts, textiles, and construction applications.

“We’re pleased to partner Vinmar to introduce Dangote Polypropylene™ to the global markets,” said Hajiya Fatima Aliko Dangote, Group Executive Director (Commercial), Dangote Group. “The Dangote Polypropylene will follow other Dangote products to become a global brand known for quality and reliability.”

For Vinmar, a petrochemical distribution giant with a global reach in over 110 countries, the deal builds on an existing long-term relationship with the Nigerian conglomerate.

“Vinmar has been honoured to count Dangote as a valued customer in Nigeria for decades, and we are thrilled to now support the global launch of Dangote Polypropylene,” said Vishal Goradia, CEO of Vinmar Group.

$2 Billion Plant Eyes Global Share

The polypropylene plant, worth $2 billion, is part of Dangote’s broader $19 billion refinery and petrochemical complex situated in Ibeju-Lekki. The facility is designed to produce up to 900,000 metric tons of polypropylene annually, across 77 different grades, with a targeted turnover of $1.2 billion.

According to reports by S&P Global Commodity Insights, the commissioning of the polypropylene units is one of the final milestones in the complex’s phased operational rollout that began in early 2024. The polypropylene production alone could significantly shift dynamics in Nigeria’s plastic packaging and processing industries, where imports and the local output from Indorama’s Port Harcourt facility have dominated the market.

Two market sources told Platts, a division of S&P Global, that the refinery began distributing its polypropylene in 25kg bags and was already disrupting domestic supply lines. A trade source disclosed that Dangote Group began offering supplies in February, well before full production was announced in March.

The Dangote Group is aiming to cover all of Nigeria’s estimated 250,000 metric tons of annual polypropylene demand through the local facility, drastically reducing the country’s dependence on imports. If successful, this could leave only excess production for export, hence the significance of the Vinmar deal.

Potential Impact on Local and Global Markets

The scale of the new facility suggests that Dangote may be preparing to compete globally, especially in the polypropylene homopolymer segment, where the Middle East has long held sway as the primary supplier to African and some European markets.

S&P Global warned that market participants are already wary of how quickly the Dangote production could capture market share from incumbent suppliers. The complex is designed to run two polypropylene units: one with a 500,000 mt/year capacity and the other 330,000 mt/year, making it the largest single polypropylene site in Africa once fully operational.

Meanwhile, in the local market, price volatility is expected in the short term, as the influx of Dangote’s product could lead to a correction in prices previously inflated by limited supply and high import costs. Industry watchers say the shift could either prompt more local downstream investments or squeeze smaller processors unable to adjust to new supply dynamics.

For Aliko Dangote, the push into global polypropylene markets is part of a broader ambition to reduce Nigeria’s dependence on imports, not just for refined fuels, but also for petrochemical products that form the backbone of multiple industrial sectors.

This strategy aligns with the government’s long-standing drive to promote industrialization through backward integration. However, unlike most other government-backed ventures, the Dangote complex is privately financed and built at scale, making it more likely to deliver real impact in terms of supply substitution and exports.

With the export leg of the polypropylene rollout now underway, attention may soon shift to how Dangote manages production consistency, supply logistics, and international pricing. However, this move signals that the company is betting that its brand, backed by large-scale investment and a trusted international partner, can earn a firm spot in the global petrochemical value chain.

Dissolution of the UTI on Libra Token Rugpull Risks Exacerbating Argentina’s Political and Social Divides

0
TOPSHOT - Argentine presidential candidate for the La Libertad Avanza alliance Javier Milei waves to supporters after winning the presidential election runoff at his party headquarters in Buenos Aires on November 19, 2023. Libertarian outsider Javier Milei pulled off a massive upset Sunday with a resounding win in Argentina's presidential election, a stinging rebuke of the traditional parties that have overseen decades of economic decline. (Photo by Luis ROBAYO / AFP) (Photo by LUIS ROBAYO/AFP via Getty Images)

Argentine President Javier Milei has dismantled the Investigative Task Force (UTI), a body established three months ago to probe the $Libra cryptocurrency scandal, as per a decree published in the official gazette, signed by Milei and Justice Minister Mariano Cúneo Libarona. The UTI was tasked with investigating allegations of irregularities after Milei promoted the $Libra token on X in February 2025, which led to a rapid spike and subsequent crash in its value, causing significant investor losses.

The $Libra scandal, often referred to as “Cryptogate,” erupted when Milei endorsed the cryptocurrency, claiming it would boost Argentina’s economy by funding small businesses. The token’s value surged from $0.000001 to $5.20 within 40 minutes but plummeted to $0.99 within hours, resulting in approximately $250 million in losses for an estimated 74,000 investors. Blockchain researchers reported that eight digital wallets linked to the token’s creators withdrew around $99 million, with allegations of a “rug pull” scam where insiders sold off their holdings after inflating the price.

Milei has faced significant backlash, including over 100 criminal complaints alleging fraud, calls for impeachment, and investigations in Argentina, the U.S., and Spain. He has denied wrongdoing, claiming he acted in good faith and was unaware of the project’s details, and ordered the Anti-Corruption Office to investigate. Critics, including opposition lawmakers and former President Cristina Fernández de Kirchner, have accused him of participating in a scam, with some labeling his actions a violation of Argentina’s Public Ethics Law.

The decision to shut down the UTI has raised concerns about transparency and accountability, as it was meant to scrutinize the roles of Milei and his sister, Karina, in the scandal. No official reason for the dissolution was detailed in the decree, but it coincides with ongoing legal and political challenges, including a federal judge’s investigation and international lawsuits. The move has sparked further criticism, with opponents arguing it undermines efforts to address the scandal’s fallout.

The dissolution of the Investigative Task Force (UTI) probing the $Libra cryptocurrency scandal under Argentine President Javier Milei carries significant implications and has deepened existing political and social divides in Argentina. Shutting down the UTI, which was tasked with investigating Milei’s role in the $Libra scandal, fuels perceptions of a cover-up. This move risks further eroding public confidence in Milei’s administration, already under scrutiny for promoting a cryptocurrency that led to $250 million in investor losses.

The lack of transparency, coupled with Milei’s denial of wrongdoing and the absence of a clear explanation for dissolving the UTI, may intensify accusations of corruption or mismanagement, damaging his credibility both domestically and internationally. The decision has amplified calls for Milei’s impeachment, with opposition figures like Cristina Fernández de Kirchner labeling it a deliberate obstruction of justice. This could escalate political instability, especially as Milei’s libertarian coalition, La Libertad Avanza, holds a fragile minority in Congress.

The scandal and UTI’s closure may weaken Milei’s ability to push his economic reform agenda, including his push for dollarization and deregulation, as public and legislative support wanes. The ongoing investigations in Argentina, the U.S., and Spain into the $Libra scandal are unlikely to be affected by the UTI’s dissolution, as they are led by independent judicial bodies or foreign authorities. However, the move could complicate Argentina’s international relations, particularly with countries pursuing lawsuits over the scam.

Domestically, the federal judge overseeing the case may face pressure to intensify scrutiny, potentially leading to legal challenges for Milei and his sister, Karina, who has been implicated in related allegations. The $Libra scandal has already cost an estimated 74,000 investors significant losses, further straining Argentina’s fragile economy, which is grappling with hyperinflation and currency devaluation. The UTI’s closure may deter future investment in Argentine markets, as it signals weak accountability for financial misconduct.

Milei’s initial promotion of $Libra as a tool to fund small businesses now appears contradictory to his libertarian free-market principles, potentially alienating his core supporters who expected economic innovation. The scandal has reignited discussions about regulating cryptocurrencies in Argentina, where crypto adoption has grown amid economic instability. The UTI’s dissolution may delay or derail efforts to establish oversight, leaving investors vulnerable to similar scams in the future.

Milei’s base, largely libertarian and anti-establishment, may view the UTI’s closure as a pragmatic move to avoid a politicized witch hunt. They argue that Milei acted in good faith and that the scandal is being exploited by opponents to undermine his reformist agenda. Opposition groups, including Peronists and center-left coalitions, see the UTI’s dissolution as evidence of Milei’s complicity or an attempt to evade responsibility. They argue it violates public ethics and democratic norms, with figures like Fernández de Kirchner accusing Milei of orchestrating a scam. This has fueled demands for impeachment and protests in Buenos Aires.

lower-income groups who lost savings in $Libra feel abandoned, while Milei’s middle-class and entrepreneurial supporters may prioritize his broader economic vision over the scandal. The judiciary and Anti-Corruption Office now face increased pressure to deliver results, as the UTI’s dissolution shifts responsibility to these bodies. This creates a rift between Milei’s executive branch and independent institutions, with potential for further legal battles.

The move also highlights tensions between Milei’s libertarian ideology, which favors minimal government intervention, and the need for state mechanisms to address financial misconduct, deepening ideological debates. Internationally, the scandal and UTI’s closure have drawn scrutiny from investors and regulators in the U.S. and Spain, where lawsuits are pending. This contrasts with domestic narratives, where Milei’s supporters frame the issue as a distraction from his economic reforms, while critics see it as a global embarrassment.

The dissolution of the UTI risks exacerbating Argentina’s political and social divides, undermining Milei’s credibility, and stalling economic recovery efforts. It intensifies the clash between his libertarian base and a broad opposition, while leaving unresolved questions about accountability in the $Libra scandal. The fallout could reshape Argentina’s political landscape and influence future cryptocurrency regulation, with Milei’s leadership increasingly under strain as legal and public pressures mount.

Obi slams N7tn budget insertions, says Nigeria is ‘run like a crime scene’, As questions mount over Tinubu’s silence

0

Labour Party’s presidential candidate in the 2023 general election, Peter Obi, has described the N6.93 trillion worth of suspicious projects allegedly smuggled into Nigeria’s 2025 national budget as further proof that the country is being “run like a crime scene,” warning that systemic corruption and impunity have now reached unprecedented levels of boldness.

Obi’s remarks followed a damning exposé by civic-tech organization BudgIT, which revealed that over 11,000 projects—many of them vague, duplicated, or linked to questionable entities—were inserted into the budget by members of the National Assembly. The group described the revelations as part of a “deeply entrenched culture of exploitation and abuse” within the federal legislature.

BudgIT’s findings triggered a storm of public outcry, with analysts and civil society groups calling for an immediate investigation into what is now being described as one of the most bloated and compromised national budgets in recent memory.

Troubling Silence from the Presidency

However, the presidency has maintained a conspicuous silence—one that critics and observers say points to a dubious alliance between the executive and the legislature.

Over 72 hours since BudgIT’s report surfaced, neither the President, the Budget Office, nor the Federal Ministry of Finance has said a word—raising questions about the administration’s commitment to transparency.

Many analysts believe the silence may not be accidental. Instead, they suggest it reflects a growing pattern of collusion between the executive and legislative branches of government.

Several civil society actors have pointed to what they describe as a quid pro quo arrangement—where the National Assembly allows the executive wide latitude in fiscal discretion in exchange for the freedom to inject massive, often opaque, constituency projects into the national budget.

“The insertion of over 11,000 projects worth N6.93 trillion into the 2025 budget by the National Assembly is not just alarming, it is an assault on fiscal responsibility. This trend, increasingly normalized, undermines the purpose of national budgeting, distorts development priorities, and redirects scarce resources into the hands of political elites, Gabriel Okeowo, BudgIT’s Country Director, said, stressing the urgent need to restore integrity to Nigeria’s budgeting process,

Obi: “Nigeria must cease to function as a crime scene”

In a statement issued on Tuesday, Obi said the revelations confirm his long-standing view that corruption is not only endemic but structurally embedded in how Nigeria is governed.

“Nigeria remains a relentless scene of corruption. I have consistently maintained that for this country to make progress, Nigeria must cease to function as a crime scene and be repositioned for genuine development,” Obi said.

“These findings are deeply troubling and confirm my long-held position. This entrenched corruption—persistent and deeply rooted—must be nipped in the bud if there is to be any meaningful turnaround.”

The former Anambra governor noted that while BudgIT uncovered N6.93 trillion in suspicious insertions, the actual amount misappropriated may be significantly higher.

“We must urgently and aggressively combat corruption, misappropriation, and fiscal recklessness in order to manage our resources effectively and efficiently, and invest in critical areas of development: health, education, and lifting our people out of poverty,” he said.

Obi linked Nigeria’s deteriorating public education and healthcare systems to what he called the “brazen impunity” of political leaders. He warned that the same pattern of fiscal irresponsibility is why Nigeria is failing to improve agricultural productivity, create jobs through MSME support, and enhance food security.

“This brazen impunity by our leaders is precisely why the country cannot invest adequately in education—hence the existence of nearly 20 million out-of-school children,” he stated. “It is also why we cannot support MSMEs, fix our hospitals, or tackle food insecurity and rising poverty.”

Lawmakers under scrutiny

At the center of the controversy are Senate President Godswill Akpabio and House Speaker Tajudeen Abbas—both of the ruling All Progressives Congress (APC)—who head the two chambers of the National Assembly. BudgIT’s report suggests that under their leadership, the legislative arm of government has continued a pattern of inflating the budget with non-essential or non-existent projects in exchange for political and financial leverage.

One example cited in the report is the inclusion of projects with little or no description, others with overlapping scopes, and some assigned to agencies without mandates to implement such work. BudgIT also flagged projects assigned to private companies and NGOs without procurement scrutiny or proper oversight.

A growing number of Nigerians and civil society groups are now calling for an independent investigation into both the National Assembly’s role and the Presidency’s complicity. Many have demanded that the Federal Government publish a full breakdown of all budget line items and their executing agencies.

As the silence from the presidency persists, Obi is urging Nigerians to remain vigilant and to demand that public resources be protected from elite capture.

“We must confront this corruption, misappropriation, and fiscal recklessness with unwavering resolve. Our national resources must be transparently managed and strategically invested in key sectors—health, education, and poverty alleviation—to secure a better future for our people,” Obi said.

“We must turn this nation around.”

Cost Savings with LPG Forklifts vs. Traditional Gas Forklifts

0

LPG (Liquefied Petroleum Gas) forklifts offer significant cost advantages over traditional gasoline-powered models across several key areas. For businesses looking to optimize their material handling operations, the switch to LPG can yield substantial savings while maintaining high performance standards.

Fuel Cost Savings

LPG typically costs 30-40% less per operational hour compared to gasoline. A medium-duty forklift running on gasoline might consume $12-15 worth of fuel per 8-hour shift, while an equivalent LPG model would use only $7-9 worth of fuel for the same period. For a fleet of just five forklifts operating daily, this represents potential annual savings of $15,000-$20,000.

Maintenance Cost Reduction

LPG forklifts experience less engine wear due to cleaner combustion. This regulator, the Impco Model J, is particularly effective at delivering consistent fuel flow that reduces carbon buildup and extends engine life. The reduced carbon deposits translate to:

  • 20-30% fewer oil changes
  • Extended spark plug life
  • Less frequent tune-ups
  • Reduced engine component replacement

These maintenance advantages typically save operators $800-1,200 per forklift annually compared to gasoline models.

Operational Efficiency

LPG forklifts provide several operational benefits that translate directly to cost savings:

  • Quick refueling (2-3 minutes to swap tanks vs. 10+ minutes for refueling)
  • No fuel spillage waste or cleanup costs
  • Less downtime for repairs
  • Consistent power output throughout tank usage

Extended Equipment Lifespan

The cleaner-burning properties of LPG contribute to an average 15-20% longer service life for the forklift. With proper maintenance, an LPG forklift can remain operational for 12,000-15,000 hours versus 10,000-12,000 for comparable gasoline models, representing thousands in delayed replacement costs.

Total Cost of Ownership

When calculating the total five-year cost of ownership for a medium-duty forklift:

  • Gasoline forklift: Approximately $65,000-75,000
  • LPG forklift: Approximately $52,000-60,000

This represents potential savings of $13,000-15,000 per unit over this period.

Environmental Compliance Cost Avoidance

LPG forklifts produce fewer emissions, helping businesses avoid potential non-compliance penalties in jurisdictions with strict environmental regulations. They produce approximately 60% less carbon monoxide than gasoline counterparts, with significantly reduced particulate matter and nitrogen oxide emissions.

For businesses considering their material handling equipment options, the switch to LPG forklifts presents a compelling financial case alongside operational and environmental benefits, making them an increasingly popular choice for warehouse and logistics operations.