Nigeria: Nestle, Mobil Others Lift NSE’s All-index Marginally By 0.04%

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Seplat Petroleum announces the success of $300m RCF deal

Despite price losses that outweighed gains, trading on the equities sector of the Nigerian Stock Exchange (NSE) was on the upbeat yesterday, as major highly capitalised stocks, especially Nestle and Mobil appreciated in price, causing the  All-share index to increase marginally by 0.04 per cent

Yesterday, the All-share index rose by N6 billion or 0.04 per cent to 43,073.45 from 43, 056.51 achieved on Monday. Similarly, market capitalisation increased by N6 billion from N15.402 trillion to N15.408 trillion.

Nestle emerged the day’ s highest price gainer with N20.00 kobo to close at N1400 per share while Mobil followed with N8.70 kobo to close at N183.70 per share.26 stocks constituted the gainers’ chart yesterday, led by Dangote Cement with N3.40 kobo to close at N268.40 per share. Total Nigeria Plc gained N2.90 kobo to close at N249.00 per share. Guinness also added 0.80 kobo to close at N99.80 per share.

According to a statement posted on the NSE website, the RCF carries initial interest of Libor +6 per cent payable semi-annually.It explained that in conjunction with the issuance of the $350 million 9.25 per cent senior notes due 2023 (the Notes), the company envisages its pro forma gross debt post – the closing of both the Notes and the RCF (expected to occur on 21 March 2018) will be $550 million.

It added that the proceeds from the Notes and RCF will be used to repay and cancel existing indebtedness.Seplat’s Chief Financial Officer, Roger Brown, said: “This successful refinancing reflects the confidence that the market has continued to show in our business and ability to proactively manage our balance sheet even through challenging times.

“Our debut bond issuance further diversifies our capital base and along with the new RCF strengthens our liquidity position which will allow us to scale up our work programme and focus on delivering our growth strategy.”


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