The Central Bank of Nigeria (CBN) has issued a guideline for including Sukuk (Islamic or non-interest financial instrument) issued by state governments as part of their liquidity ratio, including assigning it “a weight of 20 percent or as may be prescribed by the CBN from time to time.”
A circular with reference: FMD/DIR/GEN/CIR/07/006, dated October 6, 2016 to the General Public, noted that the guideline is part of efforts “to foster financial system and economic growth and development, as well as complement the efforts of government at various levels.”
The document titled: “Guidelines for Granting Liquid Asset Status to Sukuk Instruments Issued by State Governments”, signed by Dr. Angela Sere-Ejembi, for the CBN’s Director, Financial Markets Department, said the approval is “to enhance the diversification of sources of funding for development at the sub-national levels.”
To qualify for inclusion as a liquid asset on bank balance sheets, the “Sukuk issuance shall be backed by a law enacted by the relevant State House of Assembly, specifying that a sinking fund to be fully funded from the consolidated revenue fund account of the state be established.
Repayment structure of the Sukuk shall be from such sinking fund account created and backed by an Irrevocable Standing Payment Order (ISPO) obtained with approval of the state Assembly or other legislated sources of repayments disclosed in the offer documents.
Consequently, “the Accountant General of the State shall issue an Irrevocable Letter of Authority to deduct at source from the statutory allocation due to the state, approved by the Federal Minister of Finance, in the event of default by or failure of the state to meet its payment obligations.”
Also, “trustee(s) to the Sukuk shall submit to Director, FPRD, CBN every six months: (a) a statement of accounts of the sinking funds’ investments and (b) a statement of declaration on the sufficiency of the sinking funds’ investments and investment income in meeting maturing and redemption obligations.
“The Trustees shall advise the Director, FPRD, CBN on the action taken in the event that the Trustees are of the opinion that the sinking fund may be insufficient or there may be the likelihood of default, in line with Sections 255 and 256 of the Investment and Securities Act, 2007 or any amendment thereto.”
The guideline, the CBN explained, is part of efforts to further deepen the nation’s financial system and “to provide for eligibility for the grant of liquidity status to Sukuk issued by state governments at its discount window as well as for the purpose of liquidity ratio computation.”
It is also expected to further promote investment and secondary market activities.
The state government is also required to enact a fiscal responsibility law, with provisions for public debt management, in order to enhance investor confidence, in addition to establishing a debt management department that would ensure transparency and professional management of debt issues.
The Sukuk must from inception and throughout its lifespan, be of investment grade as determined by a rating agency accredited by the Securities and Exchange Commission (SEC).
The commission must also confirm “that the proceeds have been disbursed in line with the provisions of the prospectus (that) shall be submitted to the Director, Financial Policy and Regulation Department (FPRD) of the CBN at the anniversary of the Sukuk issuance. Subsequently, SEC confirmation shall be required on amounts that have not been disbursed by the first anniversary.
The state government Sukuk shall have a maximum maturity of 10 years to qualify for liquid asset status.
The CBN also limited the maximum investment a bank shall make in any Sukuk issuance of a state government or its agencies to 10 per cent of the total amount outstanding of that particular Sukuk, while “aggregate portfolio of a bank in Sukuk issued by state governments and their agencies shall not exceed 30% of the bank’s total portfolio in debt securities.”
Debt securities, in this case, are listed as: “Nigerian Treasury Bills, FGN Bonds, FGN-guaranteed notes, sovereign debt notes, and any other Nigerian sovereign debt securities, CBN bills, bonds collateralised with FGN bonds, state government bonds, state government agency bonds, corporate bonds and dated preference shares.”
Radisson Individuals makes its African debut with hotel signing in Ghana, to open its doors in October 2021
Image Source: Radisson Hotel Group
Radisson Hotel Group is proud to announce its first Radisson Individuals property in Africa, with the signing of Earl Heights Suites Hotel, a member of Radisson Individuals, Accra, Ghana. Due to open by the end of 2021, this new addition places the Group firmly on track to achieving its objective of reaching 150 hotels in operation and under development by 2025.
Located in Dzorwulu, the property is currently undergoing a full renovation and is on schedule to open within this year. Just 5km from Kotoka International Airport (KIA), the main access point by air for domestic and international visitors, the serviced apartment property is conveniently located near shopping malls, restaurants, as well as the University of Ghana, situated north of the district. Also within reach, is the tranquil Legon Botanical Gardens, with its canopy walk, rope courses, canoeing and rich birdlife.
Due to its strategic geographical location, ease of access, and aviation facilities and connections, Accra has become a conference and aviation hub for West Africa. It is also dominated by local and international business activities, making the city one of the most attractive African cities to do business.
The 58-serviced apartments property will comprise of modern studios as well as spacious and elegant one- and two-bedroom suites. Creating a true destination for its guests, the property will offer culinary options in the restaurant, The Society, which will include outdoor seating as well as in the hotel bar. The property will also feature a spa, gym, pool, convenience store, and business centre, providing the perfect base for both business and leisure.
Radisson Individuals is a conversion brand that offers independent hotels and local, regional chains the opportunity to be part of the global Radisson Hotel Group platform, benefit from the Group’s international awareness and experience, with the freedom to maintain their own uniqueness and identity. Radisson Hotel Group plans to more than double its serviced apartments portfolio within the next 5 years across EMEA. Today, serviced apartments represent around 10% of the Group’s EMEA portfolio with 45 properties and more than 5,400 units in operation and under development.
Erwan Garnier, Senior Director, Development, Africa, Radisson Hotel Group, said: “We have identified Ghana as a key focus country in our five-year development plan and, Accra as a focus and primary city. The signing of the property, which compliments the Radisson Hotel & Apartments Accra announced last year and scheduled to open in 2023, is also aligned with our current conversion-focused growth strategy, which will remain a priority, especially post-pandemic. We are therefore proud the Radisson Individuals African debut, will be on Ghanaian soil, carving the path for the new brand to continue its expansion across the continent. In proud partnership with Earlbeam Group of Companies, we are thrilled to be contributing to the country’s tourism industry, a key pillar of the national economy.”
Alfred Danso Darkwah, CEO of the hotel’s owning company, Earlbeam Group of Companies, said: “The Earl Heights Suites Hotel partnership is an exciting opportunity – it brings together the union of Radisson Hotel Group and The Earlbeam Group Of Companies, two well-seasoned brands from the hospitality and real estate sector respectively. This will be the first branded apart hotel in Ghana, completely unique, providing each guest a boutique home-away-from home experience. In addition, it delivers partner confidence, guarantee of service standards, and assured safety and security, leaving a positive mark on Ghana’s hospitality sector. We believe this Radisson Individuals hotel will inject much-needed life within the local hospitality industry and pave the way for upcoming projects between Radisson Hotel Group and The Earlbeam Group of Companies.”
Image Source: Radisson Hotel Group
Herewith the link to the renders of the hotel, which is on track to open its doors in October this year Radisson Individuals
Radisson Hotel Group operates to high standards of performance and advocates socially and environmentally sustainable business practices. More than ever, Radisson Hotel Group’s highest priorities remain the health and safety of its guests and employees. The Group partnered with SGS, the world’s leading inspection and certification company, to implement the Radisson Hotels Safety Protocol, which ensures the highest hygiene standards and strengthens the Group’s existing rigorous sanitation guidelines. In the run-up to the opening of Earl Heights Suites Hotel, a member of Radisson Individuals the hotel will implement the Radisson Hotel Group brand standards including the Radisson Hotels Safety Protocol related to safety and security.
TuneCore Launches Operations in Africa, Appoints Two Female Regional Executives
TuneCore Jade Leaf and Chioma Onuchukwu
TuneCore, the leading digital music distribution and publishing administration company for independent artists, has launched operations in Africa. Jade Leaf has been hired as Head of TuneCore for Southern Africa and will share responsibility for key countries in East Africa with Chioma Onuchukwu, who has been hired as Head of TuneCore for West Africa. Both Leaf and Onuchukwu will report to Faryal Khan-Thompson, Vice President, International, TuneCore.
Onuchukwu will be based in Nigeria and oversee countries in West Africa including Nigeria, Ghana, Liberia, Sierra Leone and The Gambia. She will also look after Tanzania and Ethiopia in East Africa. Leaf’s territory encompasses Southern Africa, including South Africa, where she will be based, as well as Namibia, Botswana, Zimbabwe, Zambia, Malawi and Lesotho. Leaf will also manage TuneCore operations in East African countries Kenya and Uganda.
Said Onuchukwu, “I am elated to be joining a renowned, independent music distribution powerhouse, especially in an incredible era for music creators in Africa at a time when we are gaining global recognition and increasing momentum. I look forward to collaborating with and supporting local artists.”
Before joining TuneCore, Onuchukwu was Marketing Manager at uduX Music, a music streaming platform in Nigeria. There she worked directly with popular African artists such as Davido, Yemi Alade, Patoranking, Kizz Daniel and more.
Commented Leaf, “I am incredibly excited to join the team in a time where the global conversation is around independence and ownership. TuneCore opens up a world of potential for independent artists at every level of their careers. Africa is home to a diverse range of artists who are seeking a reliable distribution service who understands their local needs and can ultimately give them the opportunity to turn their art into commercial success.”
Previously, Leaf worked at Africa’s largest Pay TV operator, Multichoice as the Marketing Manager for Youth & Music Channels, where she led brand re-imaging and marketing efforts for Music TV giant Channel O. Before that, she worked at Sony Music Entertainment Africa, focusing on African artists and content, as well as numerous marketing campaigns & projects for local and international artists.
There has been a meteoric rise in the uptake of streaming services in Africa, the growth has been attributed to several factors such as an increase in internet penetration via smartphones, the entrance of international and local streaming platforms in key territories and its youth population – More than 60% of African’s are under the age of 25.
In 2020, TuneCore saw an increase in music releases globally, with many African artists opting to use the DIY Distributor – DJ Spinall and Small Doctor in Nigeria, Spoegwolf in South Africa, Mpho Sebina in Botswana and Fena Gitu in Kenya to name a few.
Stated Khan-Thompson, “Africa is an extremely exciting music market with a lot of potential for growth. By hiring Jade and Chioma to lead our efforts, TuneCore is well positioned to maximize opportunities for independent artists across the continent. Both Chioma and Jade bring a wealth of experience and genuine interest in helping artists make their dreams come true. I couldn’t be more thrilled to have two incredible women representing the TuneCore brand in the continent”
IFC Invest in Liquid Telecom Bond to Support Broadband Connectivity in Africa
IFC, a member of the World Bank Group, invested in Thursday’s bond issued by a subsidiary of Liquid Telecommunications Holdings Ltd., which will allow the telecoms and technology solutions company to expand access to broadband Internet and digital and cloud services across Africa, further facilitating the growth of the continent’s digital economy.
Proceeds from the bond issued by Liquid Telecommunications Financing PLC, a wholly-owned subsidiary of Liquid Telecommunications Holdings Ltd, will enable the company to refinance existing debt and free up funds to expand its digital infrastructure network across Africa, including in markets with low broadband penetration.
By developing digital infrastructure, Liquid Telecommunications, Africa’s largest independent fiber, data center and cloud technology provider, aims to increase digital connectivity and inclusion in Africa and support the region’s growing digital ecosystem.
IFC played an anchor role and subscribed to 16 percent of the bond, equivalent to $100 million, which was listed on Euronext Dublin, Ireland’s main stock exchange, on February 25, 2021. The issuance raised $620 million.
Internet access in Africa relies largely on mobile networks, many of which are enabled by wholesale connectivity providers such as Liquid Telecommunications. Broadband penetration is low across the continent, with a mobile broadband penetration rate of 34 percent and fixed broadband penetration of less than five percent in most countries across sub-Saharan Africa, excluding South Africa.
“We are delighted that IFC has taken a significant anchor position in our new bond. In the countries in which we operate there are great opportunities to address under developed telecommunications and Internet access, as well as to accelerate the adoption of digital and Cloud-based services. Our refinance enables us to continue to invest in the African digital eco-system including driving penetration of digital and Cloud-based services to businesses who may not previously have had the resources to benefit from them, helping to bridge the connectivity divide, which is more crucial than ever in our current circumstances,” said Nic Rudnick, Liquid Telecom Group Chief Executive Officer.
“Our best chance at ensuring much-needed internet access for everyone in Africa, from large corporates and small businesses to individuals, is to invest in digital infrastructure. Our investment in the Liquid Telecom bond will help the company free up capital to further expand broadband access across Africa, laying a solid foundation for a faster, more resilient recovery,” said Stephanie von Friedeburg, Interim Managing Director and Executive Vice President, and Chief Operating Officer of IFC.
To support Africa’s digital economy, which could be worth $180 billion by 2025, IFC provides financing to mobile network operators, independent tower operators, data centers and broadband connectivity providers. IFC also provides capital to help entrepreneurs and innovative businesses grow and works with financial institutions and telecommunications companies to speed the adoption of digital payments and lending to expand financial inclusion.