While you were away!
FGN TO AUCTION THE RE-OPENING OF N70,000,000,000 EXISTING BONDS IN DECEMBER 2018
The Debt Management Office (DMO) has published in a circular dated Wednesday 12th December 2017 that The Federal Government of Nigeria (FGN) shall on 19th December 2018 offer for subscription by auction, a 5, 7 and 10 years re-opening of previously issued Bonds.
The details of the offer are as specified below;
Summary of Offer
N20,000,000,000 -12.75% FGN APR 2023 (5 – Year Re-opening)
N15,000,000,000 -13.53% FGN MAR 2025 (7 – Year Re-opening)
N35,000,000,000 -13.98% FGN FEB 2028 (10 – Year Re-opening)
Auction Date: December 19, 2018
Settlement Date: December 21, 2018
ISSUER: Federal Government of Nigeria (“FGN”)
UNITS OF SALE: N1,000 per unit subject to a minimum Subscription of N50,001,000 and in multiples of N1,000 thereafter.
INTEREST PAYMENT: Payable Semi-Annually
REDEMPTION: Bullet repayment on the maturity date.
SOVEREIGN SUKUK OFFER FOR SUBSCRIPTION CLOSES MONDAY 17TH DECEMBER 2018
The Federal Government of Nigeria (FGN) has offered for Subscription through FGN Roads Sukuk Company 1 Plc (FGN RSC1) the N100,000,000,000 7-Year Ijarah Sukuk due 2025.
The details of the offer are as specified below:
Opening Date: December 6, 2018
Closing Date: December 17, 2018
Settlement Date: December 28, 2018
SUMMARY OF OFFER
Instrument Type
Ijarah (Lease) Sukuk
Issuer
FGN Roads Sukuk Company 1 Plc. on behalf of the Federal Government of Nigeria.
Units of Sale
N1,000 per unit subject to a minimum Subscription of N10,000 and in multiples of N1,000 thereafter.
Rental Rate
15.743%
Rental Payment
Payable Half Yearly.
Redemption
Bullet repayment on the date of maturity.
Use of Proceeds
Proceeds will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country.
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.
- To be listed on The Nigerian Stock Exchange and FMDQ OTC Securities Exchange.
- Classified as Liquid Asset by the Central Bank of Nigeria.
- Certified by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria.
Security
Backed by the full faith and credit of the Federal Government of Nigeria.
The Sukuk will be the second issued by the Federal Government and the third issued in the country, as Osun State in 2013, issued an N11.4 billion Sukuk bond, while the DMO had in September 2017, issued an FGN N100 billion Sukuk bond. STL Trustees is proud to be engaged as Trustee on all the existing Sukuk Issuances in the country.
SEC APPROVES AMENDMENT TO REGULATORY FRAMEWORK PLACING PROHIBITIONS ON THE INVESTING POWER OF STOCKBROKERS
The Securities and Exchange Commission (SEC) approved the amendments to its regulatory framework which now prohibits stockbrokers from engaging in any form of guaranteed investments on behalf of shareholders.
The amended regulation also requires stockbrokers to categorically inform their clients, in writing, that they cannot engage in guaranteed investments on their behalf.
In the same vein, stockbrokers are banned from guaranteeing shareholders against losses in the course of their business relationships.
Following this development, any stockbroker who violates the newly approved regulation by engaging in any form of guaranteed dealings on the Nigerian Stock Exchange, NSE, will be penalised.
The sanctions can come in the form of a 10-day suspension from trading activities on the NSE, N5 million fine, as well as a daily fine of N20,000 from the day the N5 million fine is imposed until the day it is fully paid.
Furthermore, defaulting Authorised Clerks can be specially suspended for a period to be decided under the Nigerian Stock Exchange’s disciplinary process. When deemed necessary, the operating licenses of defaulting Authorised Clerks can also be revoked.
In a situation whereby, it is proven that a compliance officer of a dealing member is aware of a violation but refuses to report such, he or she would risk being blacklisted.
The need to amend the SEC regulation and stipulate stiff punishment became necessary as “part of efforts to clearly outline the risk horizon of quoted securities and plug a loophole that has lured many unsuspecting investors into bogus investment schemes.”
Prior to this time, there had been a significant increase in the abuse of guaranteed investments which, unfortunately, resulted in losses.
SEC LAUNCHES NEW RULES ON GREEN BOND ISSUANCE
The Securities and Exchange Commission (SEC) on Monday 3rd December 2018 held an unveiling ceremony in Abuja, in respect of the Green Bonds Issuance Rules, which were formulated in October 2018 after a series of collaborations with stakeholders in the capital market.
In a press statement, SEC explained that some of the stakeholders it collaborated with include the Green Bonds Market Development Programme, the FMDQ OTC Securities Exchange, and the Financial Sector Deepening Africa.
The essence of these collaborations was to “create an enabling environment for issuers and other stakeholders to take advantage of the tremendous opportunities that Green Bonds offer”, the statement reads in parts.
Meanwhile, the Acting Director-General of the Securities and Exchange Commission, Ms. Mary Uduk, spoke during the launch event. According to her, the rules are coming at the right time when stakeholders are trying to direct investment to more sustainable economic activities.
“As Nigeria strives to harness the resources of non-oil sectors to anchor the transition to a more resilient economy, there is the urgent need to close the country’s infrastructure gap with investments in sustainable finance initiatives. The SEC’s release of the green bond rules is a significant step in furthering the complementary efforts of the government, regulators and the financial services industry to direct financial capital to more sustainable economic activity.”
DOLLAR EXCHANGE RATE REPORT 3RD DECEMBER TO 14TH DECEMBER 2018
This report is a compilation of the dollar exchange rate at the official and parallel market from the 3rd of December to the 14th of December 2018. 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. | 14/12/2018 | DOLLAR | 306 | 363 | 367 |
| 2. | 13/12/2018 | DOLLAR | 306 | 363 | 367 |
| 3. | 12/12/2018 | DOLLAR | 306 | 363 | 367 |
| 4. | 11/12/2018 | DOLLAR | 306 | 363 | 367 |
| 5. | 10/12/2018 | DOLLAR | 306 | 363 | 367 |
| 6. | 07/12/2018 | DOLLAR | 306 | 363 | 367 |
| 7. | 06/12/2018 | DOLLAR | 306 | 363 | 367 |
| 8. | 05/12/2018 | DOLLAR | 306 | 363 | 367 |
| 9. | 04/12/2018 | DOLLAR | 306 | 361 | 365 |
| 10. | 03/12/2018 | DOLLAR | 306 | 361 | 365 |