TIRANA (Albania), April 13 (SeeNews) – Albania’s finance ministry sold 3 billion leks ($29 million/24.4 million euro) worth of three-year Treasury notes at an auction on April 12, data by the country’s central bank showed.

The coupon on the issue was set at 2.80%, unchanged compared with the previous auction of three-year government securities held in February, according to figures published by the finance ministry.

The new issue of government securities will mature on February 23, 2024.

Details follow:

Auction date April 12 February 19
Amount offered (bln leks) 3 4
Amount sold (bln leks) 3 4
Total bids placed (bln leks) 5.6 4.49
Bid-to-cover ratio 1.87 1.12
Maximum requested yield 3.34% 3.30%
Minimum requested yield 2.79% 2.70%
Coupon 2.80% 2.80%

Source: SeeNews

The Minister of Finance and Economy, Anila Denaj, and the Governor of the Bank of Albania, Gent Sejko, held a virtual meeting with Anna Bjerde, Vice President of the World Bank for the Europe and Central Asia Region.

According to the announcement during this meeting, Minister Denaj, has made a summary of all measures taken by the Government to cope with the two crises that the Albanian economy went through, such as the 2019 earthquake and the Covid-19 pandemic.

“Anna Bjerde expressed the World Bank’s support for Albania’s efforts for a comprehensive and sustainable economy and a better life for all,” the statement said.

Referring to the information published by the Ministry of Finance, the two sides shared the common opinion on the support for the blue economy initiatives, as well as the wider World Bank program in the country.

Source: SCAN

Starting from 1st of March 2021, the Albanian Registry of Securities ALREG, a new financial institution, which is expected to be operating as a registry and as central depository for corporate securities, is accepted as member in the Albanian Interbank Payment System (AIPS) operated by Bank of Albania.

The interface between central securities depository system of ALREG with the Albanian Securities Exchange system and also with the AIPS system, completes all the architecture necessary for the “trading – clearing- settling” process. This is a revolutionary step towards the development of domestic market, given the fact it opens the way without limitations to the process of listing domestic business at Albanian Securities Exchange.

Because of the negative effects imposed by COVID-19, as well as the prudential behavior of the banks regarding new loans, the stock exchange is seen as a necessary long-term financing alternative for businesses in Albania.

For more information, follow the special news prepared by SCAN TV here.

Tech and ecommerce companies seize on investor demand for lockdown winners

London has kept hold of its IPO crown, with four companies floating on the main stock market and two on Aim ©️ Bloomberg

A flurry of tech and ecommerce listings have given Europe’s market for initial public offerings its best start to the year since 2015, as extended pandemic lockdowns fuel investor enthusiasm for digital companies.

So far this year, companies listing on European stock exchanges including London’s have sold €8.4bn in equity through 16 deals, according to Refinitiv data. That figure, which includes new funds raised and owners cashing out stakes, was the biggest haul and number of IPOs for the comparable period since 2015. It was the second-biggest amount raised in data going back to 1998.

About 70 per cent of the equity sold was in companies that have benefited from the shift online by businesses and consumers during the pandemic, including card retailer Moonpig and parcel locker business InPost.

“We have witnessed some tectonic shifts in the ecommerce landscape as a result of Covid — things we thought would take five years have taken five months,” said James Fleming, global co-head of equity capital markets at Citigroup. As a result, he added, there has been a “significant re-rating of tech company valuations”.

The IPO surge highlights how lockdown winners are capitalising on increased demand from investors and a recovery in valuations across global markets. US listings have also soared, fetching a record $22.6bn over the same period.

Floats such as Moonpig in London, online car dealer Auto1 in Frankfurt and mobile gaming company Huuuge in Warsaw have given bankers an opportunity to showcase the digital and growth credentials of European equity markets that are usually overshadowed by Wall Street’s tech majors.

“Europe has had a shortage of these tech companies [compared with] the US in recent years,” said Barry Meyers, head of UK equity capital markets at JPMorgan. “There is excitement at the moment because these are high-quality companies.”

Demand outstrips the number of businesses ready to go public in the region, Meyers said. Equity issuance is running at 26 times the amount raised over the same time last year.

London has kept hold of its IPO crown, with four companies floating on the main stock market and two on AIM, despite fears that over time it might lose business to the EU following Brexit. Poland’s InPost listed in Amsterdam, calling the market a “preferred” option for the region’s tech companies.

Several of Europe’s largest deals have also included so-called cornerstone investors — who agree in advance to buy a certain value of shares. The practice, popular in Asia, benefits the company since it has a guaranteed buyer and helps the investor by locking in the size of their stake.

“Investors are becoming much more open to being cornerstones and working with underwriters to get to a successful outcome,” said Fleming.

Traditionally investors do not always receive the full stakes they want, particularly in hot flotations when fund managers vie with each other for share allocations.

Recent London listings by Moonpig and Dr Martens included cornerstone investment from BlackRock, the world’s largest fund manager, as well as San Francisco-based investment firm Dragoneer.

Source: Financial Times

TIRANA (Albania), December 11 (SeeNews) – The net profit of banks in Albania fell to 12.6 billion leks ($122.0 million/100.7 million euro) in the first ten months of the year, from 17.2 billion leks in the same period of 2019, the Albanian Association of Banks (AAB) said.

The Albanian banking sector’s outstanding loan portfolio expanded to 592.4 billion leks as at the end of October, from 576.1 billion leks a year earlier, AAB said in a monthly report, citing data of the country’s central bank.

The ratio of problem loans to total loans dropped to 8.29%, from 10.17% at the end of October 2019.

Deposits increased to 1,255 billion leks, from 1,180 billion leks.

The total assets of Albania’s banking system rose to 1,558 billion leks at the end of October, from 1,459 billion leks a year earlier.

Return on assets (ROA) decreased to 1.09 billion leks, from 1.53 billion leks. Return on equity also fell, to 9.66 billion leks from 14.05 billion leks.

The figures comprise the financial results of 12 Albanian banks. The largest one by assets is Banka Kombetare Tregtare (BKT).

Source: SeeNews

 

The Albanian Microfinance Association organized on November 25, 2020, an online event in the form of a video conference on the topic: “Albanian Microfinance in the New Normality: Weathering the Storm”. This Conference is organized on the occasion of the European Day of Microfinance and activities across the continent that are organized to promote microfinance and its role as a major supporter of the needy and enablers of social and financial inclusion.

In this event was discussed about the current issues of the sector, the challenges it has faced or is facing in the sustainable provision of services to customers, as well as opportunities and solutions that appear on the horizon to successfully overcome these challenges. Microfinance is the backbone of financial services provided to the needy, so every effort should be made to provide these segments with sustainable access to finance.

Speakers in the event were representatives from the Ministry of Finance and Economy, representatives from the Bank of Albania, the Financial Supervision Authority, the World Bank, the Albanian Banking Association, the Albanian Securities Exchange (ALSE), as well as international social finance promotion networks, such as the Center for Microfinance (MFC).

In his addressing as a keynote speaker, the Chief Executive Officer of the Albanian Securities Exchange (ALSE), Mr. Artan Gjergji, was focused at the main word common in all international financial markets: access to finance. This need is not only for SMEs but also for microfinance financial institutions themselves, which are faced with difficulties in finding cheap sources of financing.

Within this respect, Mr. Gjergji was focused mainly at the opportunities and incredible potential provided by capital markets to the domestic microfinance institutions, which can rise funds through securities issuance. This is not only a cheaper way of financing compared to the traditional ones, but also give to microfinance institutions the opportunity to be more present as well as more close to the investing public, giving a strong contribution to the need for financial education and financial inclusion in the country. Likewise, Mr. Gjergji stressed out the chances provided by capital market and exchange listing for the microfinance to increase the business volume in developing country economy such as Albania. A strong advantage in this respect is considered the fact that, despite the COVID-19 pandemic effects, based on the statistical data provided by the Albanian Association of Banks, the level of time deposits in the banking sector has reached the level of 10.4 billion EUR, presenting an extraordinary potential of free funds in the market.

In his closing remarks, Mr. Gjergji draw the attention of participants that rising capital through debt securities issuing and Exchange listing process will help microfinance institutions to better improve the financing discipline, budgeting and reporting, as well as will further increase their transparency in front of public, being in the same line with the best practices of Corporate Governance Principles.

According to the public release of the Albanian Supervisory Financial Authority on 14th of September 2020, a joint group has started the work for “drafting the strategy to development of capital market”, with the participation of Albanian Supervisory Financial Authority and Ministry of Finance and Economy.

The working group will analyze the current capital market situation and will draft a 5-year strategic document, attached with a concrete action plan, for the fulfillment of necessary steps to develop the capital markets.

As part of the preparation of the strategic document, the working group will also analyze the existing infrastructure of the capital markets and its capacities to handle the dynamics of the development of this market.

In the action plan the necessary steps for listing of state owned companies in the Stock Exchange will be defined. It is foreseen that this action plan will be drafted before 30th of November 2020.

Part of the discussions on drafting of the strategic document will be even representatives from capital markets institutions, and also institutions, organizations or other private entities, which can contribute to the development of this market.

 

Investments of the banking system abroad have dropped significantly in the second quarter of the year. According to data from the Bank of Albania, non-resident assets at the end of June amounted to ALL 336.1 billion, down by ALL 44 billion compared to the previous quarter and by ALL 15 billion compared to the end of last year.

Compared to the first quarter, this decline was also influenced by the temporary strengthening of the euro in the second half of March. But, apart from the exchange rate effect, the decision of some of the banks to invest a large part of the free foreign currency funds in the Albanian government bonds had a significant impact.

In early April, the Ministry of Finance organized an auction of two-year euro bonds in the domestic market, through which it secured a loan worth 100 million euros. While in June was issued the Eurobond worth 650 million euros, where again Albanian banks are believed to have participated with large amounts.

SCAN

Interest on 12-month bonds marked a slight increase in this week’s auction, after a period of several months of decline. According to data from the Bank of Albania, the weighted average yield increased to 1.69%, from 1.63% in the previous auction.

The government increased the sale of the entire announced amount of ALL 9.7 billion, while the total demands in the auction reached about ALL 10.5 billion. At the moment, the market is not showing liquidity constraints and is responding to the high demand for government borrowing, albeit with a slight upward correction in yields.

After the outbreak of the Covid-19 crisis, the budget deficit increased rapidly and reached almost ALL 40 billion at the end of the second quarter. After the last budget review, in July, the deficit for this year is projected to reach ALL 133 billion or about 8.4% of Gross Domestic Product.

SCAN

TIRANA (Albania), July 13 (SeeNews) – Albania will offer 4 billion leks ($36 million/32 million euro) worth of five-year Treasury notes at an auction on July 15, central bank data shows.

The government securities have a maturity date of March 26, 2025, the data shows.

At the last auction of five-year T-notes held on May 21, the finance ministry sold 4.4 billion leks worth of government securities. The accepted coupon rate was 3.7%, unchanged in comparison with the previous auction of five-year government securities held on March 24.

(1 euro = 124.273 leks)

Source: SeeNews

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