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Investors Oversubscribed for FGN Bonds by N205.87 Billion in October

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FG October Bonds Oversubscribed by N205.87 Billion

The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.

The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Bonds

MTN Nigeria Completes Issuance of N110 Billion Series I Fixed Rate Bonds

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Karl O Toriola - Investorsking.com

MTN Nigeria Communications Plc (MTN Nigeria) has completed the issuance of N110,001,000,000 Series I 7-Year 13.0 percent Fixed Rate Bonds due 2028 (Series I Bond) under the N200,000,000,000 Bond Issuance Programme.

MTN Nigeria had initially indicated the intention to raise N100 billion in Series I of the registered Shelf Programme.

The Series I Bond is the largest corporate bond issuance in the debt capital markets thus far in 2021 and MTN Nigeria’s debut in the domestic bond market, the Company having established a strong presence in Commercial Paper issuances.

The Book Build process in respect of the transaction launched on 9 April 2021 and was completed on 16 April 2021. The transaction was well received with active participation from a wide range of high value and quality investors including pension funds, fund managers, banks, insurance companies, trustees, corporates, and high net worth individuals. The total value of orders received during the Book Build was N132,151,000,000, representing a 1.32 times oversubscription of the intended N100,000,000,000 issuance. The issue was launched at a clearing coupon of 13.0 percent with N110,001,000,000 in qualified bids.

The Series I Bond Issuance further reinforces MTN Nigeria’s strategy of diversifying its funding sources and reflects its market leadership and strong credit quality, as well as the resilience of the domestic debt capital market. The net proceeds will partly be used to refinance existing debt and support the rollout of critical network infrastructure.

Commenting on the bond issuance, Karl Toriola, Chief Executive Officer of MTN Nigeria, said “We are very proud of this landmark transaction, which is the first-ever telco bond issued in Nigeria and the largest corporate bond issuance this year. The domestic debt capital market has given us the opportunity to further diversify our funding sources and extend the maturity of our debt portfolio and profile to match investment in infrastructure. The strong support for this transaction, given the challenging environment, is a reflection of the depth of the market, and investor confidence in MTN Nigeria’s long-term strategy, our management team, and the overall telecoms industry”.

Chapel Hill Denham Advisory Limited acted as the Lead Issuing House while Stanbic IBTC Capital, DLM Advisory, FCMB Capital Markets, FBNQuest Merchant Bank, Rand Merchant Bank, and Vetiva Capital Management acted as Join Issuing Houses.

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Fidelity Bank Lists N41.213 Billion Unsecured Subordinated Bonds on NGX

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Fidelity Bank Plc on Tuesday announced it has listed N41,213,000,000 10 year 8.5 percent subordinated unsecured fixed-rate series 1 bonds due 2031, issued on January 7th, 2021 on the Daily Official List of the Nigerian Group Exchange.

The bonds were issued under Fidelity Bank’s N100,000,000,000 Debt Issuance Programme.

The announcement was made in a statement signed by Ezinwa Unuigboje, Company Secretary, Fidelity Bank Plc.

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BUA Cement Plc Lists N115Bn Bond on Nigerian Exchange

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BUA Cement Plc listed its N115billion 7-Year Series 1 Fixed Rate Senior Unsecured Bond on Nigerian Exchange, making it the first listing in the NGX era. The listing was commemorated with a digital Closing Gong Ceremony featuring the Chief Executive Officer (CEO), BUA Cement Plc, Engr. Yusuf Haliru Binji on Tuesday, 13 April 2021.

Speaking during the ceremony, the Divisional Head, Listings Business, NGX Limited, Mr. Olumide Bolumole stated, “In line with its commitment to support Nigeria’s economic growth by providing a liquid, efficient, and multi-asset securities exchange hub, NGX Limited continues to provide a platform that offers investors varied options including Equity, Fixed Income, Exchanged Traded Products (ETPs) and other Funds. We are, therefore, excited about BUA Cement’s debut bond offering which was oversubscribed by 37% to the tune of N137.82 Billion and represents the largest amount raised by a corporate issuer in the history of Nigeria’s Debt Capital Market. Without a doubt, this is a testament to the high level of confidence placed on this reputable brand by its investors and the entire market.”

On his part, the CEO, BUA Cement Plc, Engr. Binji commented, “I would like to thank the management of NGX Limited for the invitation to bring trading activities to a close. Today marks another key milestone on our journey to becoming the preferred cement manufacturer in Africa. As part of our growth strategy, we took the deliberate decision to access the debt capital market with the intent to raise N100 Billion in the first tranche of our N200 Billion programme. Given the overwhelming response and in accordance with the Securities and Exchange Commission’s guidelines, we accepted N115 Billion as the total subscription amount. For us this was clear assessment of our viable business model, strong financial performance, and the strength of our product offerings.”

Speaking on behalf of the parties to the transaction, the Chief Executive, Stanbic IBTC Capital, Mr. Funso Akere stated, “We are, extremely delighted to have advised BUA Cement Plc on this landmark transaction where they took advantage of very supportive conditions in the debt capital market to raise long term funding. On behalf of Stanbic IBTC Capital Limited, Tiddo Securities and Union Capital, we would like to thank BUA Cement for giving us a freehand to guide them and the commitment showed to make the transaction a phenomenal success. We would also like to thank NGX for giving us a platform to list the bonds.”

NGX has reiterated its commitment to providing issuers with a platform that allows them to continue to raise capital even in the toughest of times whilst also facilitating secondary market trading activities.

It would be recalled that The Nigerian Stock Exchange recently completed its demutualisation which led to the creation of Nigerian Exchange Group Plc (‘NGX Group’), as the non-operating holding company with three operating subsidiaries, namely: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX RegCo), the independent regulatory arm of the Exchange; and NGX Real Estate Limited (NGX RelCo), the real estate company.

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