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How to bid for this week’s CBN Treasury Bill’s sale

The Central Bank of Nigeria (CBN) is scheduled to hold a Treasury Bills (T-Bills) Primary Market Auction (PMA) on 16th August 2018. 

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Treasury Bills

The Central Bank of Nigeria (CBN) is scheduled to hold a Treasury Bills (T-Bills) Primary Market Auction (PMA) on 16th August 2018.

The CBN will be offering N3.38billion and N30billion on 91-day, 182-day respectively. There will be no 364-day treasury bills sale this week.

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Before learning how to participate in this sale, here is a breakdown of the previous sale:

What does this mean?

In the last sale, the CBN sold N9.5 billion in 91-day treasury bills at an interest rate of 10%. The bills will mature on 1st  November 2018.

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Treasury bills worth N 69.56billion were sold for the 182-day tenor, maturing on 31st January 2019 at an interest rate of 10.4%.

They also sold N136.5 billion 364-day treasury bills, maturing on 1st August 2019 at a rate of 11.3%.

Now, let’s look at the sale scheduled for this week.

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What is the Minimum Amount I can Buy?

Previously, you could buy for as low as N10,000 and in multiples of N1,000 thereafter. However, this was increased to N50 million plus in 2017. You can still participate in this bid by approaching your bank and participating in the pooling fund option.

Here, the bank pools funds from others like you who do not have the minimum of N50 million plus required to participate in a direct bid.

Some banks also have their own minimum limits for pooling funds which can be as high as N1 million. You will need to know if your bank’s minimum requirement is financially compatible with yours so that you can bid with them, or shop for another bank with a compatible benchmark.

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How Can I Buy Treasury Bills?

Assuming you own more than N50 million and wish to participate directly in the bid, you will have to approach your bank and request a form. You fill the form with your personal information, indicating the amount you want to buy, the tenor, and your bid rate.

The bid rate, otherwise called your stop rate, is the likely interest rate that you have indicated to receive for the Principal that you will be investing in the T-Bills.

If you do not own up to the minimum requirement stipulated by the government, you can approach your bank and hope that your request is eligible to be pooled along with others like you. If it is, then you fill the form stipulating the amount, and duration for your bid

How is the Bid Rate Selected?

The CBN selects the bids that fall below the accepted marginal rates. The marginal rate is the minimum average rate for bids submitted within a bid window.

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For example, if the marginal bid rate for a bid opening on 16th August is 11%, then bids falling below this rate will be accepted and those above will be rejected.

Also, you can purchase T-Bills from the secondary market Over The Counter (OTC) through a broker.

Are Treasury Bills Safe?

Buying treasury bills is one of the safest forms of investment; they are backed by the full faith and credit of the Federal Government of Nigeria. They are also tax-free.

What if my funds don’t get pooled?

You still have another option. You can get the bank to sell to you rediscounted treasury bills. This is basically buying from someone else who is in need of funds and not willing to wait until maturity.

Banks typically prefer this option for retail investors who have less than N1 million in cash to invest.

The difference between this and buying from the primary market is that you may not get the same interest rate when compared to those who bought from the primary market. However, the difference is not that huge.

 

Patricia

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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Appointments

PwC admits 8 Nigerians, 16 others as partners across Africa 

PwC has about 400 partners and over 9,000 people spread across 34 countries in Africa.  

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PricewaterhouseCoopers (PwC) has admitted 24 professionals in Africa, including 8 Nigerians, into the firm’s partnership.

Akinyemi Akingbade, Chioma Obaro, Yinka Yusuf, Wura Olowofoyeku, Tosin Labeodan, and Rukaiya El-Rufai were all admitted into the firm’s Assurance practice, while Kunle Amida and Olusola Adewale were appointed into Advisory.

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From South Africa, nine partners were also admitted; Lumko Sihiya, Mary-Jane Mberi, Nitassha Somai, Erik Booysen, Dale Stonebridge, and David Hill, into Assurance.

Kerin Wood and Gavin Johnston have admitted partners into Advisory, and Michael Butler into the Tax and Regulatory Services.

In Zambia, the partners admitted include George Chitwa, Tax, and Martin Bamukunde in Assurance.

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Andre Burger was admitted Partner, Assurance in Namibia; Mwangi Karanja, Partner Assurance in Kenya; and Icho Molebatsi, Partner Assurance, in Botswana.

Two partners were admitted in Ghana, Richard Ansong in Assurance; and Kingsford Arthur in Advisory.

READ MORE: Dual citizenship firm opens office in Nigeria for millionaires, charges over $1 million

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About PwC

PricewaterhouseCoopers is a multinational professional services network of firms headquartered in London, United Kingdom, operating as partnerships in several countries under the PwC brand.

PwC has about 400 partners and over 9,000 people spread across 34 countries in Africa.

 

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Cryptocurrency

In less than 72 hours USDC Treasury transfers over 50,000,000 USDC to wallets

Crypto lovers continued to troop to stablecoins, as USDC market cap broke the $1 billion market capitalization.

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In less than 72 hours USDC Treasury Transfers over 50,000,000 USDC to wallets

In just three days, fast-growing cryptocurrency, USDC, a stable coin project founded by Circle and Coinbase, just released 50 million digital coins from its treasury to various wallets in less than 72 hours. Data compiled from Whale Alert, an advanced blockchain tracker, and analytics system showed the time these transactions took place.

According to Coinbase a leading American based crypto exchange, the consortium that mints USDC, collectively holds US$1.00 for every single USDC. These funds are held in a special bank account that is constantly monitored and audited.

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Crypto lovers continued to troop to stablecoins, as USD Coin’s (USDC) market cap broke the $1 billion market capitalization threshold for the first time since the stablecoin was launched in October 2018.

Quick Fact: USDC is a fully collateralized US dollar stablecoin. It is an Ethereum powered coin and is the brainchild of CENTRE, an open-source project bootstrapped by contributions from Circle and Coinbase. USDCs are issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency in a 1 USDC:1 USD ratio.

READ MORE: Coinbase, Binance, and Kraken Lead in Blockchain Merger & Acquisition Deals

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Things you must know: Investors of stablecoins, such as USDC, make money by earning dividends from the newly created digital coins being given to them for holding such stablecoin stock.

 

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Paid Content

Tech PR firm, Phyllion set to hold first of its kind Tech Conference online

The conference has a simple agenda phased into three sessions; the general, panel, and pitch session.

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The upcoming Tech PR Conference first of its kind in the Public Relations Space, Phyllion Tech PR Conference, is a convergence of the technology and communications ecosystem. It aims to chart the future of African tech through conversations from key leaders and players within the sector on how businesses now and in the future can leverage technology to drive transformation in Africa.

Themed “Embracing Technology Transformation in Africa, What Next,” this event is slated for Friday, July 17, 2020. It already boasts of a robust panel of speakers from communications and tech sectors alike. This event is one to look out for, registrations have already begun on the event website while download link to a mobile app will be shared with attendees upon registration to foster networking and upgraded virtual event experience.

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The conference has a simple agenda phased into three sessions; the general, panel, and pitch session. The Pitch session happens to be another high point of the day, this is because of the potential of start-ups getting an opportunity to pitch to a panel of judges for a chance to win an investor or investment. This session further buttresses why the Phyllion Tech Conference is a rare and commendable online conference. It was indeed carefully thought through to ensure attendees get value for their time and it bridges the gap between the start-up and the investment community.

It comes on the heels of the enduring disruptive technology which have impacted business operations in this period of the coronavirus (COVID-19) pandemic that has greatly altered the way things are done, with a change in the definition of normal.

The Founder, Phyllion & Partners, a Tech PR consulting firm in Lagos, Temi Ophylia Ibekwe, said the tech panel discussion is aimed at re-awakening the consciousness of African business owners, tech ecosystem, and government to the realities of our time, and how stakeholders can leverage technology to survive and thrive.

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She affirmed that the importance of this conference is to bring industry leaders, thought-leaders, key influencers, and major stakeholders together to discuss the future of technology in Africa. “There is a need for massive sensitization, birthing a necessity for discussions about embracing modern technologies in Africa,” Ibekwe stated.

Ibekwe also pointed out that as businesses are adjusting to the new realities of operations, the opportunity presents itself for businesses in Nigeria and Africa at large to leverage Technology to their advantage and create a future that is beneficial to our economy.

She said the situation has paved way for technological powerhouses now to re-think their strategies and effecting immediate changes to remain on top, thus marking a revolution not only for affordability and accessibility but that of increasing demand for adequate exploitation for maximum productivity.

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The situation depicts that one of the great advantages the continent has over others in riding the disruptive wave of technology is that there is far less legacy to get in the way than in other regions, creating a clean sheet on which companies can develop their distinctive models. All these are pointers to the fact that Africa would now be positioned as an increasingly attractive environment for global business entry and investment.

The goal of public relations in the tech sector like in any other sector is that of an enabler. The Phyllion Tech Conference presents a platform for communication to enable technology transformation in Africa through impact-driven conversations and actions.

Website Link: https://web.cvent.com/event/d056eda7-f312-473c-954a-c433c02fe2be/regProcessStep1

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Pitch Link: https://docs.google.com/forms/d/e/1FAIpQLSecTd89pYe_RwK6NABxD3gGjnHAs6j8VN-6NdO0wez_BMgz9A/viewform

Patricia
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