BoI, NGX partner to deepen capital formation, attract new listings

The Bank of Industry (BOI) and Nigerian Exchange Limited (NGX) yesterday, sealed a partnership deal that would help deepen capital formation for the benefit of the investing public and the Nigerian economy.

Speaking at the signing ceremony, the Managing Director of BOI, Olukayode Pitan said the collaboration between the two institutions seeks to achieve several benefits such as promoting the listing of companies to access a wider pool of funds, information sharing, market development, advocacy, investment and exit opportunities for equity investors, capacity building for stakeholders and improvement of financial literacy.

Specifically, Pitan pointed out that through the synergy, the 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.

Additionally, he said the partnership would also enable them to jointly develop programmes that would educate all stakeholders, especially large, Small & Medium Enterprises on how to access alternative financing options.

Pitan said this would be achieved by developing a suitable capital market solution such as simplified listing requirements, and derivatives among others.

According to the Managing Director, the signing ceremony is the culmination of several engagements between both organisations over the last few months to establish a strategic partnership.

“BOI provides financial assistance for the establishment of large, medium and small projects as well as the expansion, diversification, modernization of existing enterprises; and rehabilitation of existing ones.

“BOI and NGX have been in discussions on how to create more avenues that will enable businesses to broaden their capital formation activities. With this, we look forward to the actualization of the objectives of this memorandum of understanding and sustenance of a mutually beneficial and long-lasting relationship between both organisations.”

In his remarks, the Chief Executive Officer of the NGX, Temi Popoola, while applauding the management of BOI for taking steps toward strengthening the collaboration, assured that the exchange was committed to providing platforms to support issuers and market participants to achieve strategic intent.

According to him, the collaboration will support various advocacy initiatives to develop the Nigerian capital market, promote information flow to small and medium enterprises (SMEs) about the capital market and facilitate training for potential issuers on the various product initiatives.

He said the exchange will work closely with BOI to create a seamless avenue for divestments through the listing of any of its investee companies on the Boards of NGX.

Popoola added that the NGX has achieved increased efficiency in terms of competitive pricing structure, the improved turnaround time to the market, and has always sought ways to support the interest of our stakeholders.

“NGX, as a business enabler, is committed to providing platforms to support issuers and market participants to achieve strategic intent. As we consolidate on this partnership, we are very excited about the opportunities this will unearth and the numerous entities that will benefit from this partnership,” he said.