Invest in FGN Monthly Bond Auction – October 2019…

,By DMO,

The Central Bank of Nigeria on the authority of The Debt Management Office on behalf of the Federal Government Of Nigeria Offers for Subscription by Auction and is authorized to receive applications for

N50,000,000,000 – 12.75% FGN APR 2023 (5-Yr Re-opening)*

N50,000,000,000 – 14.55% FGN APR 2029 (10-Yr Re-opening)*

N50,000,000,000 – 14.80% FGN APR 2049 (30-Yr Re-opening)*

Auction Date: October 23, 2019

Settlement Date: October 25, 2019

SUMMARY OF THE OFFER

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 RATE: For Re-openings 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

INTEREST PAYMENT: Payable semi-annually

REDEMPTION: Bullet repayment on the maturity date

STATUS:

1. Qualifies as securities in which trustees can invest under the Trustee Investment Act

2. 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

3. Listed on the Nigerian Stock Exchange

4. All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks

SECURITY: FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria

FGNBondTederForm (2)

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Min. unit aggregated subscription per retail investor under TRW Stockbrokers Limited for participation in the bond tender is  N1,000,000 and in multiples of N1,000.00

TRW Stokbrokers Ltd will transfer retail investors’ purchased FGN treasury bonds from FMDQ to their respective CSCS Accounts (which acts as a digital custodian, free-of-custodian charges) via the bond trading section of NGSE.

 

ARMF Bond W/H: Available FGN T-bonds & S-bonds For Allocation Under The Upfront Interest Savings Scheme….dd. 12/10/2019

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The bond warehouse of our AMRF Bond Portfolio has the following bond odd lots for distribution to retail bond investors ONLY:

• N94.0 mln of NIGTB 14.5% 15-JUL-2021 (FG132021S3)
• N25 mln of NIGTB 16.39% 27-JAN-2022 (FG9B2022S1)
• N62.5 mln of NIGTB 16.2884% 17-MAR-2027 (FG142027S1)
• N0.562 mln of NIGTB 13.98% 23-FEB-2028 (FG152028S1)
• N40.478 mln of NIGTB 12.15% 18-FEB-2034 (FG112034S2)
• N10 mln of NIGTB 14.8% 26-APRIL-2049 (FG162049S2)
• N0.195 mln of NIGSB 13.794% 12-APRIL-2020 (FGS2020S3)
• N1.16 mln of NIGSB 14.189% 17-MAY-2020 (FGS2020S5)
• N0.569 mln of NIGSB 14.189% 14-JUN-2020 (FGS2020S7)
• N1.422 mln of NIGSB 14.535% 16-AUG-2020 (FGS202011)
• N0.135 mln of NIGSB 14.817% 20-SEPT-2020 (FGS202013)
• N0.251 mln of NIGSB 13.402% 12-DEC-2021 (FGS202143)
• N0.122 mln of NIGSB 12.62% 13-MAR-2022 (FGS202249)

Only FGN bonds with coupon >12% p.a qualify to be allocated to retail bond clients under the Upfront Interest Savings Scheme. Please kindly make Your purchase orders, min. N100,000.00

FAQ:

• What is the effective yield of a FGN bond under the upfront interest savings scheme? – it is calculated by deducting the sum of transaction charges and upfront funding expenses from the total yield till maturity (excl. compounding opportunity) and divided by the holding period, for example, purchase at ‘par’ of NIGTB 14.2% 14-MAR-2024 (FG112024S1) and held for 5-yrs to maturity => estimated effective yield of 12.6% p.a
• What is the current 91-day FGN T-bill PMA rate ? – 11.08% p.a….as far as the bond’s effective rate is higher than the 91-day bill’s pma rate => investing via the upfront interest savings scheme is a good deal for institutional savers.
• What is the current commercial banks av. savings deposit rate ? – 3.93% p.a….as far as the bond’s effective rate is higher than the savings deposit rate => investing via the upfront interest savings scheme is a good deal for retail savers.
• What will be the increment to the bond’s effective rate under the upfront interest savings scheme if the quarterly upfront interest(s) were compounded (re-invested) in 12-month TTM FGN bonds with coupon >12% for example? –  we estimate an increment of >1% p.a on the respective FGN bonds’ effective rate. Thus, compounding is an investment strategy that should never be ignored !!!
• Must i have a CSCS trading acct with TRW Stockbrokers Limited to participate? – preferably YES !!!

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Caution – selling bonds on the secondary bond market before maturity, can either incur capital loss or capital gain !!!!

Should you require further information on how to get the best (and/or highest) annual interest on Your savings, please contact directly Ekwueme Mike Anyadibe (mobile: 08066564748 and/or e-mail: ekwueme.anyadibe@trw-stockbrokers.com or respartner@live.com and/or live during trading hours via skype #ID: respartner): Fixed Income Sales.

Thank you…

TRW BOND TEAM
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .
234-1-7646689,234-1-2710224-5
Email: info@trw-stockbrokers.com; ekwueme.anyadibe@trw-stockbrokers.com
website: http://www.trw-stockbrokers.com

CBN Publishes 2018 Financial Stability Report….

By FDC,

Global output growth declined to 3.70 per cent in 2018 from 3.80 per cent achieved in 2017, largely underpinned by dwindling consumer demand, decline in oil prices and weak financial markets. Global inflation trended upward, owing mainly to the pass-through effect of currency depreciation, especially for most emerging markets and developing economies. In Sub-Saharan Africa, however, inflation dipped slightly on account of weak consumer demand. International stock markets generally showed bearish performance, influenced majorly by heightened trade tension, weak economic growth and increased geopolitical uncertainties. With the exception of Brazil and Argentina, most other key stock markets declined considerably in the second half of 2018. Monetary policy rates for most central banks were kept relatively stable. In the foreign exchange market, major currencies depreciated against the US dollar with the exception of the Japanese Yen, the Mexican Peso and the Kenyan Shilling which appreciated during the review period.

On the domestic front, the economy continued its gradual recovery as the gross domestic product grew by 2.10 per cent in the second half of 2018. The improvement was largely attributed to the rebound of activities in the services and agricultural sectors. Inflationary pressures edged up slightly in the second half of 2018 as headline inflation (year-on-year) increased to 11.44 per cent in December 2018 from 11.23 per cent at end June 2018. External reserves declined by US$4.57 billion in the second half of 2018 to US$42.59 billion, while in the foreign exchange market, the naira remained relatively stable.

The non-expansionary stance of monetary policy continued in the review period in response to global and domestic economic developments. Relative to the level at end-December 2017, broad money supply, M3, rose by 16.58 per cent at end-December 2018. Net aggregate credit to the economy rose marginally by 6.42 per cent at end-December 2018, reflecting the increases in both net claims on the Federal Government and credit to the private sector. Reserve money grew by 0.32 per cent in the review period, higher than the 2018 indicative benchmark. The growth in reserve money reflected the increase observed in net domestic assets. The Bank continues to play its developmental roles by supporting the real sector through the various intervention programmes aimed at providing affordable credit for financing the sector.

The average short-term money market rates traded mostly above the MPR of 14.00 per cent. Money market rates closed higher at the interbank market with the overnight call and Open Buy Back rates trading above their levels in the preceding half year. Short-term maturities maintained dominance in the credit market, though their share to total credit declined. Similarly, banks’ short-term deposits (below one year) constituted a significant portion of the total. In the capital market, the Nigerian Stock Exchange All Share Index and Market Capitalization decreased, owing largely to foreign capital flow reversals.

Routine bank examination reports indicated improvements in the composite risk ratings of the banks. The CAR of the banking industry increased to 15.21 per cent from 12.11 per cent in the first half of 2018, reflecting improvement in the capital cover of banks’ exposures. Similarly, the industry ROA, ROE and interest margin recorded improvements, signifying the profitability of the industry.

During the period under review, the Bank established a new Department known as Payments System Management Department. Its mandate are to strengthen the supervision and regulation of payment service providers as well as facilitate early identification of emerging risks, thereby boosting public confidence in the payment system.

12742-FSR December 2018 (for Publication)-proshare

Air Liquide seeks N2.07bn capital raise…

By The Punch,

Air Liquide Plc has revealed its intentions to raise N2.07bn capital through a rights issue on the NASD OTC Securities Exchange. The NASD said in a notice on Thursday that Air Liquide, had through its stockbroker, Stanbic IBTC Stockbrokers Limited, submitted an application for the approval and listing of a rights issue of 414 million units of 50 kobo each at N5 per share.

It said the rights issue would be on the basis of 23 new ordinary shares for every 10 ordinary shares held. According to the notice, the qualification date for the rights issue was October 15.

NSE PRICELIST FOT OCTOBER 17, 2019

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HIGHLIGHTS/BREAKDOWN OF THE 2020 EXECUTIVE BUDGET PROPOSAL by Mrs. Zainab Shamsuna Ahmed Honorable Minister of Finance, Budget & National Planning…

12727-2020 Budget Breakdown-proshare

GTBank Nets N146.989bn 2019Q3 Profit, As Loan Loss Charge Falls By 59%

Kingsley Ighomwenghian

The board of Guaranty Trust Bank Plc, on Wednesday, became the first major company on the Nigerian Stock Exchange (NSE), to present its unaudited financials for the nine months ended September 30, 2019, showing a slower or flat growth in revenue lines and profit, while expenses grew faster, with the exception of net fee and commission income, as loan impairment charges climbed by a significant 59.03%.

Specifically, gross earnings declined by a marginal 3.33% from N337.269bn in the corresponding period of 2018, to N326.033bn; after interest income slipped to N224.187bn from N237.545bn, representing 5.62% drop. Interest expense dropped 23.4% down from N66.903bn to N51.25bn; leaving net interest income of N172.937bn, compared to N170.641bn.

Loan impairment charges climbed to N2.763bn from N1.736bn, helped by the N1.931bn recovery of loans previously written off, up from N1.476bn recovered in the prior nine months. Net interest income after loan impairment charges, therefore, stood at N170.175bn; up from N168.905bn.

Fee and commission income for the period rose by 19.9% from N40.348bn in 2018 to N48.379bn, boosted by the N11.039bn earned as electronic business income, which soared from N6.768bn in 2018; followed by N8.078bn in credit-related fees and commissions, which also jumped from N5.894bn; while account maintenance charges stayed flat at N8.54bn from N8.396bn. In the period also, commission on foreign exchange deals rose from N4.768bn to N5.454bn, while income from financial guarantee contracts issued dropped from N3.033bn to N2.423bn; among others.

Fee and commission expenses dropped to N1.88bn from N2.56bn, representing a decline of 24.98%, driven by bank changes of N1.142bn from N1.406bn; while loan recovery expenses fell from N1.101bn to N739.423m. Net gains on financial instruments held at fair value through profit and loss fell by 51.94% to N9.643bn from N20.065bn.

Other income increased by 11.48% from N39.31bn to N43.823bn, boosted by the N11.613bn from discounts and recoverable (FX), up from N5.328bn; and “recoveries and others,” amounting to N10.988bn, compared to N5.872bn in 2018. Net impairment gain on financial assets stood at N110.63m from a loss of N50.638m; personnel expenses dropped from N28.121bn in the first nine months of 2018 to N27.299bn.

Operating lease expense was nil for the period under review, compared to N2.29bn; depreciation and amortization inched 24.41% up from N12.474bn to N15.519bn. Other operating expense dropped from N58.938bn to N54.648bn, chief among which was Asset Management Corporation of Nigeria (AMCON) expenses of N15.486bn, which fell from N16.307b; as well as the N6.326bn Deposit Insurance premium, which rose from N6.03bn.

Profit before tax, therefore, stood at N170.651bn, a slight increase from N164.245bn; just as income tax stood at N23.061bn from N22.022bn; and net profit of N146.989bn, representing Earnings Per Share of N5.19; up from N142.223bn, or N5.03 per share.

On the balance sheet, total assets stood at N3.519tr, boosted by customer loans and advances that rose from N1.259tr to N1.377tr. Total liabilities improved marginally from N2.711r to N2.882tr, with customer deposits rise from N2.273tr to N2.39tr; following which shareholders’ funds improved from N575.567bn to N636.752bn.

NSE Pricelist for October 16, 2019

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