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FG To Auction Three Bonds Worth 50B Each This Week

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Bonds- Investors King

The Debt Management Office has said that the Nigerian government will offer N150 billion bonds for subscription in June.

The bonds comprised three bonds worth N50bn each, a circular said Friday.

The DMO said the bonds will be auctioned on June 23 and all three have the same date for settlement.

The bonds are a 10-year re-opening bond to be offered at the rate of 16.2884 percent and to mature in March 2027; a 15- year re-opening bond to be offered at 12.5 percent with the maturity date of March 2035; and a 30-year re-opening bond to be offered at 12.98 percent and mature in March 2050.

FGN Bonds are “backed by the full faith and credit of the Federal Government of Nigeria”, the DMO said, adding that they are equally charged upon the general assets of Nigeria.

The debt office explained further that FGN bonds qualified as liquid assets for liquidity ratio calculation for banks.

For re-openings of previously issued bonds where the coupon is already set, the circular said successful bidders would pay a price corresponding to the yield to maturity bid that cleared the volume being auctioned, plus any accrued interests on the instrument.

Last month, the DMO offered similar bonds of N150bn bonds for a subscription which comprised three bonds worth N50bn each.

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Bonds

Lagos State’s Series IV N125 Billion Bond Opens for Subscription

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Sanwo-olu - Investorsking

Lagos State Government has declared open it’s series IV N125 Billion bond under the state’s N500 Billion Bond Issuance Programme.

The subscription is scheduled to close at 2.00 pm on Wednesday, December 1, 2021, stated Coronation Merchant Bank Limited in an email forwarded to investors.

The email reads, “Coronation Merchant Bank Limited is pleased to announce that the Lagos State Government Series IV Bond of up to N125 Billion under the State’s N500 Billion Bond Issuance Programme is now open for subscription. The offer is scheduled to close at 2.00pm on Wednesday, December 1, 2021.”

Please see indicative terms of the offer below:

Lagos Bond

Click here to access the supporting offer documents indicated below.
  1. Series IV Bond Pricing Supplement
  2. Series IV Trust Deed
  3. The Series IV Bond Rating Report by Agusto & Co and Global Credit Rating Co.
  4. The Issuer’s Rating Report by Agusto and GCR
  5. The Issuer’s PENCOM Clearance Letter
  6. Commitment Form
  7. Eligible Individual Investor (EII) Form

For further enquiries, kindly reach out to any of the contacts below:

Suru Daniels
Investment Banking

07032999560
sdaniels@coronationmb.com

Oluwatomilola Ajayi
Investment Banking

08089957092
oajayi@coronationmb.com

Emeka Mmakwe
Investment Banking

08184998506
emmakwe@coronationmb.com  

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Bonds

Ardova Plc Announces N60 Billion Bond Programme

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Ardova

Ardova Plc,  a Nigerian leading indigenous and integrated energy company involved in the distribution of petroleum products, announced it has established a N60 billion bond programme.

The company also announced the successful issuance of N11,444,000,000 7-year 13.3 percent fixed-rate bonds and N13,856,000,000 10-year 13.65 percent fixed-rate bonds under the programme.

Ardova disclosed this in a statement signed by Oladeinde Nelson-Cole, Company Secretary/General Counsel.

It said “Ardova PLC is pleased to announce the establishment of its ₦60,000,000,000 (Sixty Billion Naira) bond issuance programme (the “Programme”) and the successful issuance of ₦11,444,000,000 (Eleven Billion, Four Hundred and Forty-Four Million Naira) 7-year 13.3% fixed rate bonds and ₦13,856,000,000 (Thirteen Billion, Eight Hundred and Fifty-Six Million Naira) 10-year 13.65% fixed rate bonds being tranches A and B respectively of the series 1 bonds under the Programme.”

The bonds are duly registered with the Securities and Exchange Commission. An application will be made to list the Bonds on the FMDQ Securities Exchange Limited.

Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as Joint Issuing Houses, whilst Banwo & Ighodalo acted as Transaction Counsel. The trustees were advised by Aluko & Oyebode.

Commenting on the transaction, Mr. Olumide Adeosun, CEO of the Company said: “We are pleased with the successful conclusion of this transaction which again demonstrates investors’ confidence in the Company and provides additional resources for the Company to continue its expansion projects.”

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150bn FG Bonds for Auction in November

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Bonds- Investors King

The Debt Management Office (DMO), the government agency that coordinates the management of Nigeria’s debt, has said that Federal government N150bn bonds will be up for subscription this month.

In a circular available on the website of the Debt management agency, the bonds are to be auctioned on November 17 while the settlement date was set for November 19.

The Federal Agency had on September 17 announced the Federal government plans for Eurobond issuance in the international capital market (ICM). The issuance, as announced in September, was to avail local investors of the opportunity to invest.

Almost a month after, the federal government is up with N150 billion bonds. The bonds are broken into three with each worth N50bn.

A further breakdown available in the circular by DMO showed that the bonds are a 10-year re-opening bond offered at the rate of 12.50 percent and is to mature in January 2026. There is the 20-years re-opening bond to be offered at 16.2499 percent and will mature in April 2037. There is also a 30-year re-opening bond to be offered at 12.98 percent and mature in March 2050.

Similarly, according to the circular, the bonds will offer N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

The interest rate is payable semi-annually. For the interest rate, “For Re-opening of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument,” DMO said.

The circular also stated that the bond qualifies as a security. It read, “FNG bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.”

As regards redemption, the circular stipulated bullet repayment on the maturity date.

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