Long Term Debt – HHQH http://hhqh.net/ Sat, 14 May 2022 09:12:41 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://hhqh.net/wp-content/uploads/2021/07/icon-2-150x150.png Long Term Debt – HHQH http://hhqh.net/ 32 32 Safaricom seeks $2 billion to fund Ethiopian operations https://hhqh.net/safaricom-seeks-2-billion-to-fund-ethiopian-operations/ Sat, 14 May 2022 09:12:41 +0000 https://hhqh.net/safaricom-seeks-2-billion-to-fund-ethiopian-operations/ By JAMES ANYANZWA Safaricom, Kenya’s largest telecommunications company, is seeking to raise up to $2 billion from local banks and development finance institutions (DFIs) over five years to fund its Ethiopian subsidiary, which is set to start operations business in the next seven months. So far, the telephone company, which is listed on the Nairobi […]]]>

By JAMES ANYANZWA

Safaricom, Kenya’s largest telecommunications company, is seeking to raise up to $2 billion from local banks and development finance institutions (DFIs) over five years to fund its Ethiopian subsidiary, which is set to start operations business in the next seven months.

So far, the telephone company, which is listed on the Nairobi Stock Exchange, has invested $540 million in Ethiopia, including a license payment of $470 million.

Lily: Safaricom signs first infrastructure deal with Ethiopia

Part of the proposed financing will also be collected internally and via lease financing from equipment vendors.

“We managed to get short-term installations. We are also in talks with local banks for a medium to long-term facility, of which we are in very advanced stages of negotiation,” the telecoms operator’s chief financial officer, Dilip Pal, told reporters in Nairobi. last week.

“You will also recall that when the Tigray crisis broke out in Ethiopia, our discussions with the International Finance Corporation also stalled, but those discussions have now resumed and we are progressing very well.”

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Safaricom, through a consortium – Global Partnership for Ethiopia (GPE) – obtained a license from the Ethiopian government on July 6, 2021 to provide telecommunications services in the country.

Later, GPE incorporated a wholly owned subsidiary in Ethiopia – Safaricom Telecommunication Ethiopia Plc (STE).

The indirect stake of Safaricom Plc in STE is 55.71%, Vodacom Group Ltd (6.19%), Sumitomo Corporation (27.2%), CDC Group Plc (10.9%).

During the reporting period, the total financing cost of STE amounted to Ksh 4.65 billion ($40.08 million), comprising financing costs ($6.12 million), interest charges ($11.98 million), foreign exchange and hedging costs ($20.94 million) and financial guarantees at fair value ($1.04 million).

In the current financial year (2022-2023), Safaricom expects to incur between Ksh60 billion ($517.24 million) and Ksh65 billion ($560.34 million) in capital expenditure in Ethiopia.

“We have attractive rental financing from our sellers. So we will continue to have lease financing, short term local borrowing and finalizing medium and long term local borrowing and as I said DFI funding is under consideration,” said Mr Pal.

“Overall, the entity is well funded and the consortium is committed to ensuring that there are sufficient resources to carry out the activities they have planned.”

Last year, the telco set up a one-year, $400 million transition facility to support the payment of license fees for the telecommunications license.

The bridge facility was later converted into a five-year $120 million long-term facility and a seven-year $280 million facility with a two-year moratorium on principal repayment.

The new facility was complemented by a syndication process involving local and international banks.

New growth poles

“Our goal for FY23 is to accelerate new areas of growth by developing scalable businesses in these areas. Safaricom Ethiopia is preparing to launch operations. In line with our expectations, the OpCo (Ethiopian subsidiary) requires investments important in the early years of operation before becoming profitable,” said Peter Ndegwa, CEO of Safaricom.

Safaricom’s net profit for the year ended March 31 fell 1.71% to Ksh67.49 billion ($581.81 million). This was largely due to an increase in operating expenses and funding costs for guaranteed loans to finance capital expenditure of Ksh 10.5 billion ($90.51 million) in Ethiopia, the second largest country. the most populous and fastest growing in Africa.

Lily: Safaricom posts a slight drop in profit to $581 million

Profit after tax fell to Ksh67.49 billion ($581.81 million) from Ksh68.67 billion ($591.98 million) last year (2021) as operating expenses jumped 19.9% ​​to Ksh55.18 billion ($475.68 million) from Ksh46.03 billion ($396.81 million). ) in the same period.

According to the group’s audited financial statements, short-term borrowings increased by 38.1% to Ksh20.4 billion ($175.86 million) from Ksh14.77 billion ($127.32 million). dollars), while long-term borrowings amounted to Ksh 44.91 billion ($387.15 million).

Financial costs more than tripled from Ksh 2.02 billion ($17.41 million) to Ksh 6.43 billion ($55.43 million).

As of March 31, 2022, the telecom operator’s total borrowings stood at Ksh 65.31 billion ($563.01 million) while cash and cash equivalents stood at Ksh 30.78 billion. of Ksh ($265.34 million), leaving a net debt of Ksh 34.53 billion ($297.67 million).

Safaricom, which has over 42 million customers in Kenya, has however recovered from the effects of Covid-19 with its major revenue streams charting a positive trajectory.

Total revenue increased by 12.9% to Ksh298.07 billion ($2.56 billion) from Ksh264.02 billion ($2.27 billion) driven by strong revenue growth M-Pesa, mobile data and landline data.

The telecom operator’s board of directors has recommended the payment of a final dividend of Ksh 0.75 ($0.006) per ordinary share, for a total of Ksh 30.04 billion ($258.96 million). ).

This brings the total dividend for the year to Ksh55.69 billion ($480.08 million), or Ksh1.39 ($0.01) per share for the year ended March 31, 2022, after a interim dividend of Kshs 0.64 ($0.005) per ordinary share. a share amounting to Ksh 25.64 billion ($221.03 million) was reported during the reporting period.

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What you need to know about popular HELOC alternatives https://hhqh.net/what-you-need-to-know-about-popular-heloc-alternatives/ Mon, 09 May 2022 14:30:00 +0000 https://hhqh.net/what-you-need-to-know-about-popular-heloc-alternatives/ With real estate prices rising in nearly every corner of the country, it’s natural to wonder if you should be tapping into some of the growing equity in your home. This is especially true if you bought your way into the housing market several years ago, or if you need money to meet rising gas […]]]>

With real estate prices rising in nearly every corner of the country, it’s natural to wonder if you should be tapping into some of the growing equity in your home. This is especially true if you bought your way into the housing market several years ago, or if you need money to meet rising gas and grocery prices, or to pay a major expense such as tuition fees or a swimming pool in your backyard.

A quick look at the numbers shows how much real estate equity many new buyers already have. A recent report from the National Association of Realtors (NAR) showed that the selling price of existing homes rose 15.4% to $350,300 in the year to January 2022. Not only that, but the selling price rose 6.7% in January 2022 over the prior month, meaning someone who bought a home in late 2021 likely locked into instant equity within a month.

Unfortunately, traditional lenders may not be as willing to offer home equity loans or home equity lines of credit (HELOCs) as they once were. This was especially true amid the pandemic when banks tightened requirements for all kinds of borrowing, but it may still be true for today’s buyers who have recently purchased their homes or don’t have a mortgage. considerable equity in their properties.

According to Federal Trade Commission (FTC), many lenders prefer to provide home equity loans and HELOCs to borrowers who own at least 20% of the equity in their home. For a home currently worth the January 2022 median sale price of $350,300, that means a borrower would likely need to owe much less than $280,240 to have equity to withdraw. Not only that, but there are income and credit requirements to meet, some of which can be high.

Alternatives to home equity

It’s no surprise that many companies have come up with innovative home equity products to help solve this problem for homeowners. These home equity alternatives are usually called home equity investment companies or share companies, but there are also sale-leaseback companies to be aware of.

Sale-Leaseback

With a sale-leaseback, the company actually buys your home and you rent it out until you’re ready to move out or want to buy it back (if that’s an option). Sale-leasebacks do not require the previous owner to make the mortgage payments, but they must pay rent.

Home Equity Sharing Agreements

With a home equity investment company or home equity sharing arrangement, homeowners receive an upfront cash investment in exchange for sharing a percentage of the future appreciation or depreciation of their home. This allows you to access some of the current equity in your property, without giving up ownership of your home.

A popular home equity investment firm called Unison promises a “smarter way to unlock your home’s equity, without interest, debt or monthly payments.” Available in 28 states plus Washington DC, Unison focuses on investments ranging from $30,000 to $500,000.

With the Unison HomeOwner program, the company’s initial investment can lead to ownership of up to 17.5% of the value of your home. This allows them to participate in the growth of your home’s value over time, although the company also shares the risk if your home’s value drops.

Letting Unison buy some of the equity in your home doesn’t mean you’re stuck in home ownership forever, either. You can sell your home at any time during the process, although Unison does not share any loss in home value if you sell it within three years (or five years in special situations).

The value of your home should theoretically increase in value within three to five years, in which case you can sell your home and repay Unison the amount owed to them when you close the property. This amount would include their initial investment plus any growth in the percentage of equity in your home that they have an equity stake in. That said, working with Unison requires a 3% set-up fee at closing, which adds to their profits without benefiting you in any way. way.

Other popular home equity investment firms include Homepage, Indicate, House and Noah. Each of these companies operates similarly, although they have different minimum and maximum investments, their own fee structures, and different levels of nationwide availability.

The pitfalls to know

Selling some of your home’s equity through a co-investment certainly isn’t the worst idea in the world, but you should consider the potential downsides before you jump in. Be sure to read the fine print before signing any type of contract, and pay attention for the following:

  • Costs: REITs charge an upfront transaction or origination fee that can range from 2.5% to 5% of the amount of equity they purchase. This amount is usually deducted from the money you receive in exchange for the equity in your home.
  • Hidden costs: You may also be responsible for additional expenses associated with assessing the value of your home and entering into the contract. For example, Unison says its clients are responsible for appraisal fees which typically range from $450 to $1,250 and settlement fees which range from $700 to $1,750.
  • Risks: This type of investment requires you to use your home as collateral, just as you would with a home equity loan or HELOC. If you sell your home early in the process and it has lost some of its value, you may have to reimburse the home equity investment company for its losses.

Other strategies to consider

Letting one of these companies buy a percentage of your home’s equity can certainly make sense, and that’s especially true if your alternative strategy is to use a credit card to rack up long-term debt. Home equity investment companies charge upfront fees to get you access to the equity in your home, but the high interest rates charged by credit cards (currently over 16%) can make borrowing particularly costly in the long term.

With that in mind, you can also consider financing alternatives, including 0% APR credit cards that let you pay no interest on purchases for a limited time, typically up to 21 months. In the meantime, also consider borrowing with an unsecured personal loan, which can help you access the cash you need with a fixed interest rate, fixed monthly payment, and set repayment schedule.

Finally, interest rates are still low for mortgage products, so a cash refinance can help you access the equity in your home without taking out a second lien or giving anyone the right to an appreciation. future. You may be able to do a cash-out refinance with your current mortgage lender, but you can also shop around for a new mortgage to make sure you get the best rates and terms.

Home equity investment companies allow you to borrow money against the equity in your home if you need to, but they are far from the only option to consider.

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Businesses and essential workers fail in final CT budget deal https://hhqh.net/businesses-and-essential-workers-fail-in-final-ct-budget-deal/ Mon, 02 May 2022 09:00:00 +0000 https://hhqh.net/businesses-and-essential-workers-fail-in-final-ct-budget-deal/ As state lawmakers on Monday moved to cut taxes for working families and motorists, the new budget they plan to pass will not do as much for businesses and private sector workers on the front lines of the pandemic – even if the current budget surplus of $4 billion increases further. Despite this huge tax […]]]>

As state lawmakers on Monday moved to cut taxes for working families and motorists, the new budget they plan to pass will not do as much for businesses and private sector workers on the front lines of the pandemic – even if the current budget surplus of $4 billion increases further.

Despite this huge tax cushion, the budget that begins July 1 will include $30 million to help businesses replenish a $495 million hole in Connecticut’s unemployment trust, sources say.

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Additional support expected for Singapore stock market https://hhqh.net/additional-support-expected-for-singapore-stock-market/ Fri, 29 Apr 2022 00:00:27 +0000 https://hhqh.net/additional-support-expected-for-singapore-stock-market/ (RTTNews) – The Singapore stock market on Thursday halted the three-day slide in which it had fallen more than 40 points or 1.3%. The Straits Times Index now sits just above the 3,335-point plateau and is likely to add to its gains on Friday. Overall forecasts for Asian markets are optimistic, with support expected in […]]]>

(RTTNews) – The Singapore stock market on Thursday halted the three-day slide in which it had fallen more than 40 points or 1.3%. The Straits Times Index now sits just above the 3,335-point plateau and is likely to add to its gains on Friday.

Overall forecasts for Asian markets are optimistic, with support expected in particular from oil and technology stocks. European and American markets were up and Asian markets are expected to open similarly.

The STI ended slightly higher on Thursday after gains in industrials, plantations and properties, while financials were mixed.

For the day, the index improved 14.42 points or 0.43% to end at 3,335.09 after trading between 3,315.07 and 3,344.24. The volume was 2.81 billion shares worth S$1.60 billion. There were 260 winners and 209 decliners.

Among assets, CapitaLand Integrated Commercial Trust lost 0.43%, while CapitaLand Investment jumped 1.96%, City Developments and Fraser Logistics both added 0.69%, Comfort DelGro and Wilmar International both fell 0.68%, Dairy Farm International climbed 3.03%, DBS Group gained 0.33%. percent, Genting Singapore rose 1.25 percent, Hongkong Land jumped 3.26 percent, Jardine Cycle soared 8.46 percent, Keppel Corp soared 3.00 percent, Mapletree Commercial Trust rose 1.07 percent, Oversea-Chinese Banking Corporation collected 0.76 percent, SATS rose 0.86 percent, SembCorp Industries accelerated 2.79 percent, Singapore Airlines and SingTel lost 0 .36%, Singapore Exchange fell 0.10%, Singapore Technologies Engineering rose 1.98%, United Overseas Bank fell 1.37%, Yangzijiang Shipbuilding climbed 1.14% and Mapletree Industrial Trust, Mapletree Logistics Trust, Ascendas REIT and Thai Boisson e were unchanged.

Wall Street’s advance is broadly positive as major averages opened slightly higher on Thursday but accelerated throughout the day, ending near session highs.

The Dow Jones jumped 614.46 points or 1.85% to end at 33,916.39, while the NASDAQ jumped 382.59 points or 3.06% to close at 12,871.53 and the S&P 500 jumped 103.54 points or 2.47% to end at 4,287.50.

Wall Street’s rally came as upbeat earnings news overshadowed a disappointing report on the US economy; results from companies such as Meta (FB), Qualcomm (QCOM), McDonald’s (MCD), Merck (MRK) and Eli Lilly (LLY) led the way.

Meanwhile, traders appeared to ignore a Commerce Department report showing U.S. economic activity unexpectedly contracted in the first quarter of 2022.

Some traders may have interpreted the data as a sign that the Federal Reserve will not raise interest rates as aggressively as currently expected.

Crude oil prices rose on Thursday amid supply concerns over the possible impact of sanctions on Russia’s crude oil production. West Texas Intermediate crude oil futures for June ended up $3.34 or 3.3% at $105.36 a barrel.

Closer to home, Singapore will release March figures for import prices, export prices and producer prices later today. In February, import prices jumped 16.2% year on year, while export prices rose 19.3% year on year and producer prices rose 22.4% year on year. year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The grim economic toll of the war in Ukraine confronts world governments https://hhqh.net/the-grim-economic-toll-of-the-war-in-ukraine-confronts-world-governments/ Sat, 23 Apr 2022 19:20:00 +0000 https://hhqh.net/the-grim-economic-toll-of-the-war-in-ukraine-confronts-world-governments/ WASHINGTON — Top global finance officials gathered in Washington last week faced a grim picture of the mounting economic costs of Russia’s war in Ukraine and the challenges they face to help pay the short and long bills. Ukrainian term. Ukraine needs about $5 billion a month in budget support for up to five months […]]]>

WASHINGTON — Top global finance officials gathered in Washington last week faced a grim picture of the mounting economic costs of Russia’s war in Ukraine and the challenges they face to help pay the short and long bills. Ukrainian term.

Ukraine needs about $5 billion a month in budget support for up to five months and about $600 billion for a broader reconstruction effort, Ukrainian Prime Minister Denys Shmyhal said Thursday during a a forum hosted by the World Bank during the Spring Meetings held with the International Monetary Fund.

The two international financial institutions and several individual governments have begun pledging contributions, but in interviews and public comments, officials acknowledged that much work remains to be done to find the necessary funds.

EBRD’s Odile Renaud-Basso said Ukrainian support comparable to the Marshall Plan after World War II was being considered.


Photo:

Hollie Adams/Bloomberg News

“You are now going to see a great mobilization of the international community,” said Odile Renaud-Basso, president of the European Bank for Reconstruction and Development, in an interview on Friday. “Everyone thinks of something like a Marshall Plan for Ukraine, like what happened after World War II,” she said, referring to the US-led multinational reconstruction program. United launched in 1948 which helped revive the European economy through public aid and private investment.

This task comes at a difficult time for the global economy. Nations, including the United States, are grappling with their own problems, including soaring inflation and slowing growth. Many developing countries, faced with rising food and fuel prices and mounting debt burdens amid rising interest rates and a lingering pandemic, say they need help from wealthy governments and international financial institutions such as the IMF and World Bank.

“The big problem that everyone is struggling with is…how do you do policymaking in this world when you have crisis upon crisis and you haven’t recovered from the first crisis yet,” Gita Gopinath, first deputy managing director of the IMF, said in an interview.

Non-military support for Ukraine and developing country debt stress were the main topics of finance ministers and central bankers attending the meetings.

Ukrainian President Volodymyr Zelensky spoke about Russian military objectives during a video appearance at a World Bank roundtable this week.


Photo:

Grant Ellis/World Bank Group/Shutterstock

Ukraine’s financial needs, according to officials in Kyiv and multilateral groups, fall into two main categories: short-term and long-term.

The country needs about $5 billion every month to cover essential public services over the next two to three months, according to IMF Managing Director Kristalina Georgieva, referring to a budget shortfall resulting from falling income and increased costs such as care for the injured. soldiers and displaced citizens.

Ukrainian President Volodymyr Zelensky told delegates during his video appearance at a World Bank roundtable on aid to Ukraine on Thursday that “the Russian military aims to destroy all objects in Ukraine that can serve economic base to life, including railway stations, food warehouses, oil refineries.

Mr Shmyhal said around $600 billion would be needed for the costs of reviving, rebuilding and transforming his economy. He said his government had asked a number of countries to provide 10% of their unused special drawing rights – the monetary reserve assets created by the IMF – to help Ukraine after a global allocation of $650 billion. last year to boost global liquidity.

Meanwhile, the World Bank estimates physical damage to Ukraine’s infrastructure and buildings at $60 billion so far.

Ukrainian Prime Minister Denys Shmyhal, who visited Washington this week, said about $600 billion would be needed for Ukraine.


Photo:

Susan Walsh/Press Pool

World Bank President David Malpass suggested reconstruction planning was underway. He told Thursday’s roundtable that reconstruction should begin with urgent repairs to critical infrastructure such as transport, electricity, heating and digital connectivity within six to eight months of the end of the war. Efforts to strengthen cities, households, agriculture and businesses should follow, he said.

“As the war continues, we will work to build confidence in Ukraine’s financial, monetary and fiscal institutions,” Malpass said.

Officials of multilateral institutions said they hoped to provide support for Ukraine’s short-term fiscal needs with country grants, rather than loans that require repayments, given its currently dysfunctional economy. The IMF predicted last week that Ukraine’s economy would contract by 35% this year. Mr Shmyhal said more than 60% of the country’s businesses shut down fully or partially in March, including the Mariupol steel plant, where Ukrainian soldiers were entrenched.

Mounting a package for rebuilding will be more complex. To persuade nations to provide significant resources, Ukraine must commit to restructuring its economy while presenting plans to build long-term resilience, including environmental efforts, said the EBRD’s Renaud-Basso.

“Before the war, Ukraine had an extensive reform agenda in terms of improving governance, fighting corruption and improving its judicial system,” she said. “These challenges remain, and they will have to be addressed in reconstruction if there is to be much international support.”

The influx of private sector investment is also essential, officials said. On Thursday, U.S. Treasury Undersecretary Wally Adeyemo and Ukrainian Finance Minister Sergii Marchenko invited leaders of major U.S. financial entities to dinner to discuss how they could help rebuild Ukraine. Included were Bank of America Corp.

Goldman Sachs Group Inc.,

Citigroup Inc.

and Mastercard Inc.

“We think the only way to give us the energy to get out of the crisis is a huge amount of investment, private investment,” Marchenko said in an interview with The Wall Street Journal.

He said the group had discussed possible reforms in Ukraine to welcome more private investment, including fighting corruption, improving the judicial system and strengthening investor protections.

“It is wise to take certain steps, certain necessary steps to be able to attract additional investment to Ukraine,” Marchenko said.

It is difficult to predict the extent of the damage and the cost of reconstruction as the war continues, officials said. It is clear that the amounts will be enormous.

SHARE YOUR THOUGHTS

How can the global community prepare for the long-term effects of the war in Ukraine? Join the conversation below.

After the Second World War, the United Nations High Commissioner for Refugees was created to help three million Europeans displaced from their homes. Today, more than 4.5 million Ukrainians have fled the country and another eight million are internally displaced, Ms Georgieva said during the roundtable with Ukrainian officials, as she urged countries to help.

“Those of us familiar with European history are horrified for you, but we are also horrified for Europe and the world,” said Ms Georgieva, a development economist born and trained in then Bulgaria. of the Cold War. “We have those rare moments in life when we discover who we are, and this is one of those moments.”

Write to Yuka Hayashi at yuka.hayashi@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Business News | Stock and Equity Market News | Financial News https://hhqh.net/business-news-stock-and-equity-market-news-financial-news/ Wed, 20 Apr 2022 02:56:34 +0000 https://hhqh.net/business-news-stock-and-equity-market-news-financial-news/ Search mutual fund quotes, news, net asset values Infosys INE009A01021, INFY, 500209 HDFC Bank INE040A01034, HDFCBANK, 500180 Tata power INE245A01021, TATAPOWER, 500400 Adani Wilmar INE699H01024, PUNCH, 543458 jubilant food INE797F01020, JUBLFOOD, 533155 […]]]>












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