BlackRock Exits Nigeria’s Stock Exchange, Liquidates $400 Worth Million iShares ETFs

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BlackRock, one of the world’s leading asset managers, plans to liquidate its iShares exchange-traded funds (ETFs) valued at $400 million due to unprofitable business conditions in Nigeria and Kenya.

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“The Board of Directors of iShares, Inc. voted to close and liquidate the Fund. Currency conversions, including conversion of Nigeria’s currency, the Naira, will impact the timing of the Fund’s liquidation,” iShares Inc. announced.

iShares Inc., which has invested in emerging market equities in Nigeria and Kenya for years, has set the last trading day for March 31, 2025, with the extended liquidation expected to last until then.

“After market close no earlier than August 12, 2024, but on a date as soon as practicable, the Fund will cease trading and the creation and redemption of Creation Units. The Fund expects the last trading date to be on or around March 31, 2025, and the liquidation date to be three days after the last trading date,” the statement continued.

During this period, iShares will sell its assets in all markets and hold the proceeds in cash and cash equivalents.

“During the extended liquidation period, the Fund will not be managed in accordance with its investment objective and policies, as the Fund will sell down its assets, as determined by BlackRock Fund Advisors, where possible, and hold the proceeds of such sales in cash and cash equivalents,” the statement said.

This move comes amidst a continuous exit of foreign investors from Nigeria, attributed to a challenging macroeconomic environment and the naira’s devaluation.

BlackRock’s iShares had already liquidated its holdings in companies listed on the Nairobi Securities Exchange (NSE), which included a $5.2 million investment in Kenya’s Safaricom ($2.8 million), Equity Group ($1.5 million), and KCB Group ($885,000).

The fund has provided exposure to equities in select African stock markets, such as Egypt, Kenya, Morocco, and Nigeria, as well as other emerging markets including Bahrain, Bangladesh, Colombia, Estonia, Jordan, Kazakhstan, Pakistan, Philippines, Romania, Sri Lanka, and Vietnam.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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