NSE Lists N2bn Greenwich Money Market Fund
The Nigerian Stock Exchange( NSE) on
Tuesday, March 7, 2017, admitted 20 million units of the Greenwich Plus Money Market Fund at N100 per share with a market capitalization of N2 billion. The listing followed a successful Initial Public Offer( IPO), which was over subscribed by 44.85 per cent.
Speaking at the listing, the managing director, Greenwich Trust Limited, Mr. Kayode Falowo said“ the listing was a great feat in view of recent economic and financial market conditions. He noted that the listing was remarkable to Greenwich Trust Group, adding that 48 per cent over-subscription attests to the confidence investors have in the capability of the Fund Manager, Greenwich Asset Management”.
Mr. Falowo appreciated the acceptance of the fund by the broker dealer community, whom he said ensured a successful roll out for the fund.“ Let me thank the stockbrokingcommunity for assisting and ensuring that not only did we raise N1 billion, but
FGN Savings Bond expected to boost financial inclusion
The Federal Government of Nigeria
( FGN) Savings Bond is expected to boost financial inclusion. The sovereign savings bond which was launched on Monday, March 13, 2017 and targeted at retail investors is designed to ensure the offer reaches the last mile subscribers. For this reason, the DMO has accredited 87 stockbroking firms of the Nigerian Stock Exchange to market and distribute the Savings Bond.
According to Executive Director, NSE, Mr. Haruna Jalo-Waziri, the retail bond, issued by the Debt management Office will be offered monthly in tenors of 2 and 3 years, with quarterly payment of interest to investors. The minimum subscription amount is N5,000.00 with additions in multiples of N1,000.00, subject to a maximum of N50,000,000.00. Backed by the Federal Government of Nigeria, the bond, amongst several objectives was purposed to deepen the national savings culture, provide opportunity to all citizens irrespective of income level to contribute to
National Development, enable all citizens participate in and benefit from the favorable returns available in the capital market and more importantly diversify funding sources for the Government. The debut of this savings bond puts Nigeria in the league of sovereigns like Sweden, Thailand, Slovenia, Indonesia, United States, and United Kingdom with savings bonds. Already, capital market operators are excited about the product and believe it can act as a fillip to lift the capital market particularly that has seen many retail investors depart since the downward. Prior to now, the bond market is predominantly available to high net worth investors to the detriment of low income investors. With the entry level for the savings bond, even students can afford to play in the space.
Jalo-Waziri further said“ NSE Retail Bond Market was launched in 2012 with the aim of providing retail investors access to high quality debt instruments, as well as afford them portfolio diversification opportunities in an efficient and reliable way.
invests. ng- MARCH / APRIL 2017 we end up raising N1.45 billion.”
He added that“ Our choice to list the Greenwich Plus on NSE is to promote the transparency and visibility of the Fund. The Fund remains open and its core objectives are to achieve a competitive rate of return and generate a steady stream of income for unit holders and the company will continue to grow it.”
Mr. Falowo called on all stakeholders to support all market development initiatives of the regulators.“ This is a time for every one of us to support the initiatives of the NSE and the SEC in ensuring that we focus as much as possible on mutual funds”.
Nigeria’ s First FX Denominated Bonds issued by FGN
NEWS
History was made with the listing of the
$ 1 billion Federal Government( FGN) Eurobond issued under Nigeria’ s newly established Global Medium Term Note programme on the floor of the Nigerian Stock Exchange on Thursday, March 2, 2017. The 15-year Sovereign Eurobond issued at a coupon of 7.875 % per annum is the first foreign currency denominated security to be listed and traded in the Nigerian capital market.
Commenting on the listing, the Director General, Debt Management Office( DMO), Dr Abraham Nwankwo said that“ the listing of domestic Sovereign Eurobond reinforces FGN’ s commitment to deepen and grow the Nigerian capital market. Developing the domestic market can help bridge the infrastructure deficit constraining economic growth”.
He noted that the Eurobond which was over-subscribed by 780 %, is part of FGN’ s funding strategy for its 2016 capital expenditure plan and will be utilized to fund key infrastructure projects, in line with its economic plan.“ This huge oversubscription rate underscores a buoyant investor’ s appetite for building exposure to Nigeria and demonstrates international capital markets confidence in the economy’ s long term prospects”.
Also speaking on the listing, the Executive Director, Market Operations and Technology, Mr Ade Bajomo commended the DMO for listing the Eurobond in the nation’ s bourse. He noted that the domestic listing will diversify its investors’ base by giving Nigerian institutional investors access to the bond.
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