STL Trustees Capital Market & Money Market News Recap

While you were away!

FGN SAVINGS BOND ALLOTMENT DROPS TO N607.3 MILLION

The Debt Management Office (DMO), on Wednesday 12^th July, 2017 raised N106 billion through the Federal Government of Nigeria, FGN, Bonds. The funds raised will support the implementation of the Federal Government’s N7.44 trillion 2017 budget, which has an allocation of N2.36 trillion to capital expenditure. The funds which were raised in line with the DMO mandate, to provide funds for the implementation of the budget, were offered in three tenors of 5, 10 and 20 years to meet the needs of various investors.

The total subscription was N129 billion, representing 96 per cent of the amount offered. The 10 and 20-year Bonds were oversubscribed, showing investors preference for long-dated Bonds. Based on the bids received at the Auction, the DMO allotted a total of N106 billion and the rates were 16.24 per cent for the 5-year, 16.25 per cent for the 10-year and 16.2514 per cent for the 20-year Bond.

FGN TO RAISE UP TO 450 BILLION NAIRA IN BONDS BY THE THIRD QUARTER OF 2017

The Debt Management office (DMO) on Wednesday 5^th July, 2017 announced that The Federal Government of Nigeria (FGN) plans to raise between 360 billion naira and 450 billion naira ($1.18 bln-$1.48 bln) in sovereign bonds maturing between five and 20 years in the third quarter of 2017.

DMO said it would auction 90-120 billion naira in the five-year note and 135-165 billion in the 10-year and 20-year debt between July and September.

The FGN issues bonds each month to help fund its budget deficit, support the local debt market and maintain a benchmark for companies to follow.

Nigeria expects a budget deficit of 2.36 trillion naira this year as it tries to spend its way out of a recession. It expects to raise money to cover more than half the gap from the local market.

SEC EXTENDS DEADLINE FOR E-DIVIDEND REGISTRATION TO DEC. 31, 2017

The Securities and Exchange Commission (SEC) has extended the deadline for the stoppage of issuance of physical dividend warrants in the nation’s capital market to Dec. 31, 2017.

According to SEC, the deadline was extended to give room for investors to key into the e-dividend payment platform. The extension also became necessary to perfect the commission’s rules on issuance of dividend warrants that was recently exposed to the public.

SEC had in 2016 announced June 30, 2017, as deadline for issuance of physical dividend warrants  to shareholders by quoted companies to tackle unclaimed dividends and mitigate the risks associated with warrants.

“E- dividend simply refers to an online system of paying dividends to investors when companies declare dividends, which are the profits meant for investors, rather than send it by post, they will just wire it to the investor’s bank account.’’ The commission’s decision to continue to underwrite the cost till Dec. 31, was part of its developmental role to curb the menace of unclaimed dividend.

DOLLAR EXCHANGE RATE REPORT 1^st JULY TO 14^th JULY, 2017

This report is a compilation of the dollar exchange rate at the official and parallel market from the 1^st of July to the 14^th of July, 2017.  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.