RMB Global Markets

Business Solutions

Global Markets clients are faced with numerous financial market risks and opportunities relating to their income statement, balance sheet and cash flow positions. In this light, RMB Nigeria Global Markets provides clients with a holistic range of solutions:

Foreign exchange risk solutions

Fluctuating exchange rates pose many challenges to clients. A change in the exchange rate can increase the domestic costs of running a business, reduce earnings or affect the value of offshore assets. Importers and exporters face differing challenges in prevailing foreign exchange markets. These include:

  • Exposure to different currencies
  • The outlook for a particular currency cross
  • Liquidity of the currency (such as in Africa)
  • The timing of the exposure
  • The exchange control implications related to any proposed currency hedging solution

RMB Global Markets offers a range of foreign exchange products to clients at consistently competitive pricing.

Read more Foreign exchange terms and conditions

Fixed income solutions

The global fixed income market allows clients to access investments that provide fixed payments on a fixed schedule over a period of time. RMB Global Markets facilitates access to the ever-growing treasury securities market in Nigeria and other fixed income products in the international market. The array of fixed income products provided includes, but is not limited to repurchase agreements (repos) and Eurobonds.

We participate in primary auctions on behalf of our clients and for our own account and also efficiently execute clients’ requests in the secondary market via our local trading platform. Advisory solutions on timing, pricing and volume are also provided to clients to ensure our clients are well informed for sound participation in market issuances.

Interest rate risk solutions

Changing interest rates can reduce a client’s investment returns or increase a client’s borrowing costs. Where a client is indebted by way of a secured or unsecured loan, a mortgage, or asset-based finance, an interest rate risk exposure exists. RMB Global Markets provides a range of appropriate interest rate hedging solutions to manage this risk.

Commodity risks solutions

Unforeseen changes in prices can affect a client’s earnings or increase a client’s input costs, particularly in the commodities space. This is often the case when price fluctuations in underlying commodities cannot easily be passed on to consumers, or the cost of holding commodity stocks in the working capital cycle is prohibitively expensive due to price levels.

A wide variety of energy, soft commodities (e.g. grain), industrial materials and precious metal prices can be hedged irrespective of whether a client is a producer or a consumer. The most frequently managed commodity risk is the local fuel price, including hedges for AGO, PMS, LPG, paraffin, bunker fuel, as well as the underlying international oil price.

RMB Global Markets provides a range of appropriate hedging solutions to manage this risk.

Liquidity (cash flow) risk solutions

Managing short-term cash flow without access to bridging finance can be problematic and this risk arises when a client does not have sufficient funds available or the funds are tied up in working capital.

RMB Global Markets provides liquidity through lending (from overnight to term) by way of:

  • Approved credit lines per client
  • Financing commodities throughout the entire working capital chain
  • Facilitating funding through capital markets via commercial paper and corporate bond markets

Investment solutions

Our clients want investments that address their needs in terms of duration, liquidity, income, appetite for risk, asset class diversification, transparency, simplicity, cost structure and structural efficiencies. Global Markets uses a diverse basket of financial instruments (such as equities, cash, credit, derivatives, inflation, foreign currency and commodities) to meet these needs in the traditional and alternative market space.

RMB Nigeria leverages the broader FirstRand regional and international platform to provide a wide range of tailored investment solutions.

RMB Global Markets has a team of highly-experienced, widely skilled specialists and dealers who provide a comprehensive range of Global Markets risk management and investment solutions to a select client base through:

Relationship teams – At RMB Global Markets we are committed to understanding our clients’ businesses and nurturing and adding value to these relationships. Highly experienced relationship teams focus on the full spectrum of financial market risk solutions according to each client and their needs.

The Global Market Sales Desk – is manned by Trading Sales (Foreign Exchange and Fixed Income) and Trade Finance Corporates. The relationship teams work with all stakeholders to ensure a seamless service experience across our product set.

Customer Dealing – RMB Global Markets’ experienced team of customer dealers conclude and confirm foreign exchange and money market transactions while sharing their global market knowledge and expertise by assisting clients with suitable and cost-effective solutions.

Structuring – Through a strong partnership with the in-country sales and trading teams, RMB Nigeria leverage off the expertise of the RMB Global Markets Africa Structuring team to offer bespoke hedging solutions to their Nigerian client base.

RMB Global Markets’ Structured Solutions team has been a market leader in South Africa for many years. A team of quantitative analysts and financial engineers use financial modelling techniques to engineer financial solutions for clients with more sophisticated risk mitigation requirements (foreign currency, interest rates and commodities).