The Nigerian Exchange Limited (NGX), and Bank of Industry (BoI), yesterday signed a Memorandum of Understanding (MoU) to deepen capital market reach, and build the capacity of stakeholders through financial literacy programs, facilitate market advocacy initiatives and promote listings.
The announcement was made during the signing ceremony led by the Chief Executive Officer (CEO), NGX, Temi Popoola, and the Managing Director, MD/CEO, BoI, Olukayode Pitan, in Lagos.
The MoU will have NGX, and BoI collaborate on driving capital market solutions through the promotion of retail participation and listings, enhancing information flow to stakeholders and supporting market development that further deepens capital market advocacy initiatives.
Commenting on the agreement, Poopola said: “In furtherance of The Exchange’s aim to promote the interest of stakeholders operating in the capital market, the collaboration will support various advocacy initiatives to develop the Nigerian capital market.
“Also to promote information flow to small and medium enterprises (SMEs) about the capital market listing procedures and facilitate training for potential issuers on the various product initiatives.
“NGX will work closely with BoI to create a seamless avenue for divestments through the listings of any of its investee companies on the Boards of NGX.”
Through this partnership with NGX, BoI will encourage companies in which it has equity holdings as well as its pool of current and past borrowers to approach The Exchange for initial public listings, which will serve as a veritable window for divestments and access to wider funding options.
On his part, Pitan said the MoU will enable BoI and NGX to jointly develop programs that will educate all stakeholders, especially Large Enterprises and SMEs on how to access alternative financing options.
“Through this partnership with NGX, BoI will encourage companies in which it has equity holdings as well as its pool of current and past borrowers to approach The Exchange for initial public listings, which will serve as a veritable window for divestments and access to wider funding options,” he added.
BoI’s mandate to promote capital market inclusion supported the expansion of over 3 million enterprises and created over 7 million jobs. Additionally, capital base expansion saw the bank making successful forays into the international market and raised about $3.8billion in the last four years.
This includes a $750million syndicated medium-term loan in 2018 (fully paid); a €1billion syndicated loan in March 2020; a $1billion syndicated loan in December 2020; and a €750million Senior Eurobond (the first by any African national DFI) in February 2022.
