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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