While you were away!
SEC COMMENCES CROSS-REFERENCE CHECKLIST REVIEW OF BOND/FIXED INCOME APPLICATIONS
The Securities and Exchange Commission (SEC) has announced that it has commenced the Cross-Reference Checklist Review of Bond/fixed income applications with effect from June 1, 2019.
In a circular issued on the Commission’s website on the 10th of June 2019, the SEC notified Issuers, Issuing Houses/Financial Advisers and all relevant parties that henceforth a duly filled Cross-Reference Checklist is required to be filed along with the relevant applications.
The Cross-Reference Checklist Review is intended run for six (6) months and is a precursor to the implementation of the Commission’s Deemed Approval Regime.
Click on the links below for the respective checklists of the underlisted transaction documents.
Trust Deed Checklist: http://sec.gov.ng/wp-content/uploads/2019/06/Trust-Deed-Checklist.pdf
Prospectus Checklist: http://sec.gov.ng/wp-content/uploads/2019/06/Prospectus-Checklist.pdf
Underwriting Agreement Checklist: http://sec.gov.ng/wp-content/uploads/2019/06/Underwriting-Agreement-Checklist-30119.pdf
DMO ANNOUNCES JUNE 2019 FGN SAVINGS BOND OFFER FOR SUBSCRIPTION
The Debt Management Office (DMO), has in a circular made available to the public on Monday 10th June 2019, disclosed that it has been authorised to receive applications for the Federal Government of Nigeria’s Savings Bonds for June 2019.
According to the DMO, the bonds would be auctioned on Wednesday, May 22, 2019, with the settlement date being Friday, May 24, 2019.
Summary of the Offer
Year FGN Savings Bond due June 19, 2021: 11.418% per annum
3-Year FGN Savings Bond due June 19, 2022: 12.418% per annum
Opening Date: June 10, 2019
Closing Date: June 14, 2019
Settlement Date: June 19, 2019
Coupon Payment Dates: September 19, December 19, March 19, June 19
ISSUER: Federal Government of Nigeria (“FGN”)
UNITS OF SALE: N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.
INTEREST PAYMENT: Payable Quarterly
REDEMPTION: Bullet repayment on the maturity date.
The bonds are to be listed on the Nigerian Stock Exchange (NSE) and would qualify as a liquid asset for liquidity ratio calculation for banks.
Status
- Qualifies as securities in which trustees can invest under the Trustee Investment Act.
- Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors.
- Listed on The Nigerian Stock Exchange.
- Qualifies as a liquid asset for liquidity ratio calculation for banks.
Security
Backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.
Interested investors should contact the stockbroking firms appointed as distribution agents by the debt management office.
FIXED INCOME AND MONEY MARKET PERFORMANCE 13TH JUNE 2019
Below are highlights from activities in the fixed income and forex market at the close of trading yesterday 13th June 2019.
Bonds
The Bonds market yields expanded by c.2bps across the benchmark bond curve, pushing average yields to close the day at 14.70%. There were reports of demands on some select maturities at the mid- to long-end of the curve around 14.65%.
Benchmark FBN Bonds
| Description | Bid (%) | Offer (%) | Day Change (%) |
| 14.50 15-Jul-21 | 14.77 | 14.05 | 0.12 |
| 16.39 27-Jan-22 | 14.70 | 14.15 | (0.01) |
| 12.75 27-Apr-23 | 14.76 | 14.31 | 0.00 |
| 14.20 14-Mar-24 | 14.48 | 14.12 | (0.12) |
| 13.53 23-Mar-25 | 14.83 | 14.32 | 0.15 |
| 12.50 22-Jan-26 | 14.67 | 14.36 | (0.06) |
| 16.29 17-Mar-27 | 14.73 | 14.38 | 0.00 |
| 13.98 23-Feb-28 | 14.75 | 14.65 | (0.01) |
| 12.15 18-Jul-34 | 14.71 | 14.54 | 0.04 |
| 12.40 18-Mar-36 | 14.69 | 14.57 | (0.06) |
| 16.2499 18-Apr-37 | 14.71 | 14.47 | 0.06 |
Source: Zedcrest Dealing Desk
Treasury Bills
At the Primary Market Auction, a total of N129.64bn in maturing treasury bills was rolled over by the Debt Management Office across three maturities. The stop rates remained stable for the 91- and 182-day tenors at 10.00% and 11.9499% respectively, while the 364-day tenor closed higher at 12.34% (+14bps higher than the previous auction). Demand was also concentrated on the 364-day tenor, with a bid-to-cover ratio of 2.84%.
Primary Market Auction Results
|
Benchmark Treasury Bills
| Description | Bid (%) | Offer (%) | Day Change (%) |
| 18-Jul-19 | 12.00 | 5.00 | 0.25 |
| 1-Aug-19 | 12.00 | 5.00 | 0.25 |
| 12-Sep-19 | 12.15 | 10.30 | 0.45 |
| 3-Oct-19 | 11.90 | 11.75 | (0.40) |
| 14-Nov-19 | 12.15 | 11.60 | (0.15) |
| 5-Dec-19 | 12.30 | 11.70 | (0.10) |
| 2-Jan-20 | 12.25 | 12.00 | 0.10 |
| 6-Feb-20 | 12.35 | 12.20 | (0.05) |
| 19-Mar-20 | 12.30 | 12.15 | (0.10) |
| 2-Apr-20 | 12.40 | 12.15 | 0.00 |
| 14-May-20 | 12.40 | 12.25 | 0.00 |
Source: Zedcrest Dealing Desk
Money Market
Money Markets resumed from the public holiday lower, fueled by net Treasury bills maturities of c.N125bn. OBB and OVN rates closed the session at 5.43% and 5.71%.
| Money Market Rates | ||
| Current (%) | Previous (%) | |
| Open Buy Back (OBB) | 5.43 | 8.71 |
| Overnight (O/N) | 5.71 | 9.50 |
Source: FMDQ, Zedcrest Research
FX Market
At the Interbank level, the Naira/USD rate remained relatively stable, unchanged at N307.00/$ (spot) and N356.92/$ (SMIS) as trading resumed from the break. The Naira depreciated by 0.0% at the I&E window, to close at N360.67/$.
The Naira remained relatively stable at the parallel market, as the cash rate lost 0.17% to close at N359.10/$ while the transfer rate remained unchanged at N362.50/$.
| FX Market | ||
| Current (N/$) | Previous ( N/$) | |
| CBN Spot | 307.00 | 307.00 |
| CBN SMIS | 356.92 | 356.92 |
| I&E FX Window | 360.67 | 360.63 |
| Black Market | 359.10 | 358.50 |
| Transfer Market | 362.50 | 362.50 |
DOLLAR EXCHANGE RATE REPORT 3rd JUNE TO 14TH JUNE 2019
This report is a compilation of the dollar exchange rate at the official and parallel market from the 3rd of June to the 14th of June 2019. The quoted parallel market prices are to serve as a guide to readers, as they represent the average price obtained daily from different black-market dealers in the Country.
| S/N | DATE | CURRENCY | OFFICIAL RATE N | PARALLEL MARKET RATE
N |
|
| BUY | SELL | ||||
| 1. | 14/06/2019 | DOLLAR | 306.95 | 358 | 360 |
| 2. | 13/06/2019 | DOLLAR | 306.95 | 359 | 360 |
| 3. | 12/06/2019 | DOLLAR | 306.95 | 358 | 360 |
| 4. | 11/06/2019 | DOLLAR | 306.95 | 358 | 360 |
| 5. | 10/06/2019 | DOLLAR | 306.95 | 358 | 360 |
| 6. | 07/06/2019 | DOLLAR | 306.95 | 358 | 360 |
| 5. | 06/06/2019 | DOLLAR | 306.95 | 358 | 361 |
| 8. | 05/06/2019 | DOLLAR | 306.95 | 358 | 361 |
| 9. | 04/06/2019 | DOLLAR | 306.95 | 358 | 361 |
| 10. | 03/06/2019 | DOLLAR | 306.95 | 358 | 361 |