IN line with its tradition of highlighting opportunities that would help investors derive optimal value for their investment, Stanbic IBTC Bank has launched the Securities Lending Product in the Nigerian capital market.
Securities lending involves the temporary transfer of securities from one party (the Lender) to another (the borrower) for a fee.
These transactions are facilitated through an intermediary acting as agent or principal intermediary between the lender and borrower. The borrower is obliged to return the securities, either on demand or at the end of a term.
In his opening remarks at the launch in Lagos, Chief Executive, Stanbic IBTC Bank, Mr. Yinka Sanni, said as a member of a global banking group, Stanbic IBTC has a responsibility to help grow the capital market through products and initiatives that could help investors harness investment opportunities that exist in Nigeria. Standard Bank Group, to which Stanbic IBTC Holdings belongs, is the largest African bank by assets and market capitalization, and has been in operation for over 153 years, with strategic representation in 20 countries in Africa, including South Africa.
Sanni stated that investors need to spread their investment options into different financial derivatives, and in doing this, minimize risks associated with tying investments in particular stocks and securities. Diversification into different asset classes, he added, reduces risk levels, while offering higher returns.
In driving success for the product, Stanbic IBTC will be relying on its extensive product knowledge and expertise; rich technology capability; access to lenders and borrowers to drive utilisation; sound risk management fundamentals and extensive reporting capability, Sanni added.
“We are delighted to be introducing the Stanbic IBTC Securities Lending Product into the Nigerian market. The product launch is a further demonstration of our commitment to facilitating stability and growth of the Nigerian capital market, via confidence-building initiatives and leveraging investment opportunities in the market. Other derivatives will be introduced in the future,” Sanni stated.
Oscar Onyema, Chief Executive Officer, Nigerian Stock Exchange (NSE), noted that various initiatives have been introduced to strengthen the capital market, including the derivatives market. He described the investment opportunities in the capital market and Nigeria’s economy as huge.
Despite the prevailing challenging operating environment and the attendant indifferent performance of the capital market, characterized by low level investor confidence, there still exists enormous investment opportunities for Nigerians to leverage, Onyema stated, while reiterating the Exchange’s goal of becoming the leading bourse and gateway to Africa when it comes to capital formation and investment.
Stanbic IBTC Bank had in the recent past launched several products and services to stimulate and deepen growth of the Nigerian capital market. Among these is the Purchasing Managers’ Index (PMI), a composite index to measure private sector activities to provide an early indication of business conditions in the country. Another product is the Stanbic IBTC Exchange Traded Fund 30 (ETF 30), an index built on the NSE 30 Index that tracks the 30 most capitalized companies on the Nigerian Stock Exchange.

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