Hei God. Nigeria & China 🤝 Giving us Heart Attack
This week, Nigerian Debt, Apple, & Evergrande grabbed our attention
Hi ,
How you doing, Champ? Everything all good? Drinking water and minding your business? Awesome ! Na you na: You be killing it!
As you know, I come bearing sweet off-the-streets gist! Let’s dive right in.
What If I Told You, You Now Have $4 billion in Debt? Oh Nigeria
Why are you like this? You too like Money. I knew I’d get your attention. You couldn’t even say Naa Tomi, naa I’m good. 😅🥴
But FOR REAL! Have You Heard?? The Federal Government of Nigeria raised the biggest debt instrument in Africa on Wednesday, a $4 Billion Eurobond. I just collapsed. Somebody pour water on me! Sorry. Wait. I can’t breathe. They said the Eurobond is part of the government’s plan to raise 2.343 trillion naira ($5.71 billion) from outside folks to help fund 2021 spending and finance the 5.6 trillion naira deficit. Isn’t 2021 over? Which spending again?? Dirty December? Hei god.
The debt is in tranches of three tenors, meaning they cut it in 3 parts. First, a $1.25billion for seven years at a yield of 6.125%, a $1.5billion 12-year bond at 7.375%, and a $1.25billion 30-year tranche at 8.25%. The Nigeria bonds will be listed on the Nigerian and London Stock Exchanges on Sept 28.
Someone please borrow me a word to describe this. I’m in sevia pain!!!!
Why is the Evergrande such a big deal?
So word on the street is that the Chinese Real Estate giant, the Evergrande Group, is a huge mess that could really mess up the global economy - Yikes! China keeps nothing local anymore… since covid. -_-
Unless you follow China's economy, you probably had never heard about Evergrande until sometime this past week. And no, it's not the ship that got stuck in Egypt's Suez Canal -- that was the Ever Given. Evergrande is a real estate developer in China, and it also has its own soccer team and bottled-water business. Yep, they’re no joke. However, after years of heavy borrowing, the company said last week that it may default on its debt: about $300 billion to be specific. God oo!
We’re not entirely sure the government would help (and just a gentle reminder, the government in question is China, that’s all I'd say), but there are signs that the authorities will give Evergrande some breathing room. Rather than buy its debts, authorities have approved an Evergrande proposal to restructure its debts, which essentially involves extending deadlines for payments.
The reaction within China has been negative (that’s putting it nicely) and it’s not much better around the globe (Everybody is shaking i mean $300 billion AIN’T NO PLAY). Though the company has yet to officially default, the world's financial markets have braced themselves. The S&P Index, the Nasdaq, Japan's Nikkei 225 and Australia's ASX are among the many markets that fell big time.
A literal footage of Tomi from Trove equally falling with the markets:
We can only hope for a reasonable end to this impending crisis 🙏
FreshWorks goes public! Backed by Google.
On Wednesday evening, the Indian start-up ecosystem erupted in celebration when Freshworks became the first-ever Indian software maker to list on the NASDAQ! #GeGe!!
Girish (the CEO/Founder) founded Freshworks as a customer service platform in October 2010 from an air conditioning duct warehouse in Chennai, a metropolis in the South of India. Within 200 days—and no outside funding 👏🏾, Freshworks had 200 small and medium business customers spread across the globe. Humble Beginnings, ehn!
Fast Forward to today, Freshworks (FRSH) raised $1.03 billion with an initial public offering that exceeded expectations and gave the cloud software company a valuation of $10.1 billion. God When?! And we trust Google never to miss out on an opportunity like so, Alphabet (GOOGL) got in on the action through CapitalG - its investment arm. After Freshworks shares jumped 32% in their Nasdaq debut on Wednesday, CapitalG’s stake is worth $987 million.
Girish this weekend:
APPLE’S EPIC FIGHT
Though this ain't no Mohammad Ali vs Joe Frazier, the fight between Apple Inc. and Epic games has proved to not be some joking sturvs... 🥊🥊
You’re probably wondering who Epic games are and why you should be bothered, so let me help you out there. [and I’ve written about this before 😀]
Epic games are the creators of the billion-dollar video game, Fortnite. They’ve been in court with Apple Inc since August of 2020 (Apple loves a good fight, don’t they?). Their disagreement began when Epic games implemented directed pay systems for In-App purchases that bypassed the Apple store, ensuring Apple couldn’t take their usual 15-30% cut. Apple responded by removing Fortnite from the Appstore, and ultimately Epic games sued Apple.
Despite Epic games’ pleas, courts ruled that Apple did not have to reinstate Fortnite into the Appstore. Apple recently stated that it will be blacklisting Fortnite, until the legal battle is over, which is a process that could take up to 5 years. And that equals billions of dollars lost, considering the game produced a revenue of $5.1 billion in 2020 alone.
....not to clinch on a bad note for today but that’s it for right now y’all ~!!!
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E go Better.
Your dearest and favourite Stocks Market Gist Partner,
Tomi, From Trove 🖤
XOXO