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Meristem Securities Limited Nigeria | Blog

Domestic Foreign Currency-Denominated Bonds

Domestic Foreign Currency-Denominated Bonds (DFCBs) are debt financial instruments issued by a domestic entity (such as corporations or governments), within the local market but denominated in a foreign currency. These bonds are governed by the domestic market’s regulations and are typically aimed at local investors, providing exposure to international currencies like the U.S. dollar (USD)…

ByBrand & Comms Team4 days ago0Comments

Financial Advisory

Debenture by Right Issue

A Right Issue means an offer of securities by an issuer to its shareholders at a particular date, usually in proportion to their existing holdings. You can read more about it in our Rights Issue Article. Although an equity right issue is more common in practice, right issues can either be debt or equity issues.…

ByBrand & Comms TeamAugust 30, 20240Comments

Financial Advisory

Public Offer

A public offer is a process by which a company raises capital by offering its securities, such as stocks or bonds, to the general public. This type of offering allows anyone, including individual and institutional investors, to purchase the securities. Public offers are typically conducted through a stock exchange or over-the-counter markets and are subject…

ByBrand & Comms TeamAugust 15, 20240Comments

Financial Advisory

Rights Issue

One mode of raising capital through Equity Financing is the Rights Issue. A Rights Issue involves giving existing shareholders the right, not an obligation, to acquire additional shares (new shares) in the company, at a discount (rights offer price) to its current market price. It is structured in the form of an invitation to the…

ByBrand & Comms TeamJuly 9, 20240Comments

Financial Advisory

Bonus Issue

What is a Bonus Issue? Bonus issues are additional shares issued to existing shareholders of a company at no cost. The new shares issued are based on the current holding. A bonus issue is also known as a Scrip Issue or capitalisation issue. During cash shortages, companies may seek to issue bonus shares to uphold…

ByBrand & Comms TeamJune 28, 20240Comments

Financial Advisory

Understanding Credit Ratings in Nigeria

Credit rating is an independent assessment of the creditworthiness of companies and governments, determining their solvency. It is based on the financial statements of these entities to assess if their business operations are sound. Rating agencies publish these ratings, generally categorizing them as either Investment Grade or Speculative Grade. Importance of Credit Ratings Regulatory Use:…

ByBrand & Comms TeamMay 23, 20240Comments