Member Info for komakino

Exactly Che7, everyone on here should know Savannah's mission statement, so to bleat when they do exactly that shows a clear lack of emotional intelligence.

Lol hx, if you're finding it all a bit hard to grasp then maybe we could draw you a picture.

Smokey, if the govt. keeps to what they stated in August which was to issue bonds and potentially other instruments to pay off an agreed USD $2.1bn 'in 3-4 weeks' then we could see those instrument offerings shortly, so it's not wild speculation to think there could still be some sizeable payments being made in September. My personal view is that the reason for the lack of audit sign-off is that the auditors want to see a repayment plan for the trade receivables, so pushing it out to Sepember as they did recently, fits with that thory. Could be wrong, but it's certainly not deluded optimism to consider it a possibility.

Hx, why would you expect the govt. to follow up with the Gencos when they have explicitly stated that the monies will be repaid via a bond issue? Until the bond instruments are issued there's not a lot that the govt. can discuss with the Genco's. Perhaps you can read the article as the comments of a disgruntled (and rightly so) Genco. The initial comment from President Tinubu on the 14th August was that it was 3-4 weeks away. If you watch the link I posted on 5th September you will see a video discussion with Ayodele Oni, Partner at Bloomfield Law Practice who said that 3-4 weeks to get everything together and issue the bonds was ambitious and expected it to take a bit longer than that. It's been exactly 5 weeks since President Tinubu made the comment so not sure you need to be too worried ;-)

Hx, what are you on about? Perhaps you should read the article. There is nothing in the article that infers that there won't be good news on repayments, so it's misleading to suggest otherwise. I'm not suggesting there will be, just that the article does not say there won't. Perhaps you should try a little balance yourself :-)

I'm not sure how you have come to the conclusion in your heading based on that article.

Whoops, scrub that. I was looking at the update before. Yes, just the Ingalls & Snyder change.

Thanks Zengas. There were a few smaller changes:

RWC dropped from 55.9m to 49.9m

JO Hambro increased by 3m

Miton increased by 2m

Yes, apologies, you are correct, it was Dec 2024. There was also a bond for the purpose of road building in May this year for $198 million but was oversubscribed to the tune of $1.4 billion in total so does suggest there is appetite for these sort of bonds.

All of the previous large scale offerings (over $1 billion) were Eurobond offerings so supect it will be something similar. The last major eurobond offer was for $2.2 billion in 2022. This was a dual-tranche issuance with maturities in 2031 ($700 million) and 2034 ($1.5 billion). The transaction was also oversubscribed, with a peak order book of over $9 billion so perhaps there is grounds for optimism they could get the full amount away. Should hopefully hear something this month.

The last 4 monthly auctions have raised US$89M, US$122M, US$66M and US$197m respectively so unless they discount the bonds more than previous auctions it is probably going to take a while to pay off the US$2.6bn debt if this is the only mechanism for raising funds, especially as the money raised in these auctions is for other purposes.

The monthly bond auctions tend to take place in the last week of the month so it might be the end of September before we get any news if that is the mechanism by which they will be raising the funds

Video discussion with Ayodele Oni, Partner at Bloomfield Law Practice re: the issue of bonds to refinance the energy sector. Sound quality isn't great but a couple of key things I picked up regarding his opinion of how it would work:

5-10 year discounted government bonds to clear debts

3-4 weeks to get everything together and issue the bonds is ambitious and expected it to take a bit longer than that

https://www.cnbcafrica.com/media/7755865679388/nigeria-begins-phased-plan-to-refinance-4trn-electricity-debt/

*By the way it was President Tinubu, not Buhari who was the previous President.

I've not seen a specific energy bond issued, though Nigeria issue bonds each month so not sure if they have allocated additional funds from the latest monthly raise. The article I read stated that 'The plan will likely involve bond issuances and other instruments to spread out the repayment liability over time.' Hopefully we'll get an update in the next week or so as to what form it will take from a Savannah perpesctive.

I guess at the time of the subscription Blacksea and Savannah were not anticipating the shares being suspended. If they are waiting for a sizeable repayment and a payment plan for the trade receivables then hopefully won't be too much longer as Buhari said on the 14th August that he expected the process to be complete in some 3-4 weeks. Hopefully he will be writing some cheques in the next week and we can then get back to trading with a better idea of the path to reducing the receivables. At least the 7 month 2025 update was broadly positive on that point.

The RNS stated they expect the shares still to be issued so the answer to your question appears to be yes, they are. They are not allowed to issue the shares whilst the company is suspended so have to wait till they relist.

And in case you would like some further explanation:

Regulatory Requirement: Under the rules of the AIM market, a company's ability to issue new shares is directly tied to the shares being actively traded. When a company's shares are suspended from trading, it is generally prevented from carrying out any new share issuance. This is a standard regulatory measure to protect investors and maintain market integrity.

Fair Market Practice: The primary reason for this rule is to ensure fairness and transparency. Issuing a large tranche of new shares while the market is "frozen" would prevent investors from knowing the real-time value of their holdings. It would also create a situation where some parties (the subscribers of the new shares) are able to transact, while the general market cannot.

Aim Rule 40 cover this :-)

Hx, you missed out this bit: 'due to the ongoing suspension of its Ordinary shares from trading on AIM'

They are waiting for the competion of the audited accounts. They did say by end of August but they have now pushed it into September.