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Fixed Income

Daily update on Treasury Bills, Bonds, Forex, oil price and more



Nigerian Stock Exchange

Daily performance of major economic indicators and highlights from tradings sessions and key statistics such as Treasury Bills, bonds, FX rates, inflation, oil price.

I&E Market Turnover Hits All time High of $1.2bn as FPIs fuel Rally on T-bill*** FGN Bonds Trade to Sub-14% in Post-Election rally***




The FGN Bond market opened the day on a firmly bullish note, with significant buying witnessed especially on the mid to long end of the curve, following the final announcement of the presidential election results. Yields on the 2027s and 2034s consequently broke the 14% support level, to trade at a low of 13.91% and 13.81% respectively. Yields however retreated slightly towards the end of the session, to close at c.10bps lower on the day.

We expect demand interests to persist, but on a less aggressive note as market players seem to view support for bonds at c.14%.

GTBank 728 x 90

Benchmark FGN Bonds

Treasury Bills

The T-bills market rallied further by c.50bps in today’s session, with continued buying interest witnessed especially on the long end of the curve which traded as low as 14% during the sesssion. In line with our expectations, the NTB auction by the CBN was signifcantly oversubcribed by c.632%, with the most demand on the 364-day which was 11.75X oversubscribed. Stop rates consequently cleared by c.35bps lower from their previous auction levels at 10.90% (-7bps), 13.01% (-39bps) and 14.37% (-58bps) on the 91, 182 and 364-day bills respectively.

Given the signifanct level of demand at today’s NTB auction, we expect market sentiments to remain firmly bullish, as market players anticipate a renewed OMO offering by the CBN tomorrow.

NTB Auction Result

Money Market

Rates in the money market declined further by c.4pct as system liquidity improved slightly to c.N140bn. The OBB and OVN rates consequently ended the session at 9.50% and 10.58% respectively.


We expect rates to trend lower tomorrow due to expected inflows from OMO maturities, c.N350bn.


Money Market Rates

FX Market

At the Interbank, rates remained unchanged at N306.85/$ (Spot) and N356.97/$ (SMIS). The NAFEX rate in the I&E window appreciated by 0.09% to N361.18/$ as market turnover hit an all-time high of c.$1.2bn following increased FPI inflows into the market. At the parallel market, the cash and transfer rates depreciated by 0.06% and 0.14% at N358.00/$ and N366.00/$ respectively.

FX Market


The NGERIA Sovereigns maintained a bullish run fuelled by a successful declaration of the Nigerian election results. Yields which trended significantly higher at the open of the session however retreated slightly, with yields closing lower by c.10bps on the day.

In the NGERIA Corps, we witnessed slight interests on the ZENITH 22s, FIDBAN 22s and SEPLLN 23s.


Contact us:
Dealing Desk: 01-6311667 | Dayo: 07032208237 | Seyi: 08023231396 | Nnamdi: +2348133385000 | Tosin: +2347039394376
Whilst proper and reasonable care has been taken in the preparation and accuracy of the facts and figures presented in this report, no responsibility or liability is accepted by Zedcrest Capital or its employees for any error, omission or opinion expressed herein. This report is not an investment research or a research recommendation and should not be regarded as such. The information provided herein is by no means intended to provide a sufficient basis on which to make an investment decision.

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Fixed Income

MTN Nigeria begins N100 billion commercial paper issuance today

MTN Nigeria Communications Plc proposed Commercial Paper Issuance Offer begins today and is scheduled to close on Thursday, June 4, 2020. 



MTN Nigeria, MTN Nigeria Communications Plc. begins N100 billion commercial paper issuance today

MTN Nigeria Communications Plc has commenced its Commercial Paper (CP) Issuance (Series 1 & 2 of N50 billion each)  under its N100 billion CP issuance programme on Thursday.

In a statement issued by the company and seen by Nairametrics, the telco explained that the issuance has a tenor of 180 days (CP 1) and 270 days (CP 2) with a discount rate of 4.6890% – 4.8797% (CP1)  and 5.8500% – 6.000% (CP2).


Nairametrics had reported a few days ago when the telecommunication company notified the Nigerian Stock Exchange about the issuance.

Why it matters: The issuance is important to the telco, as it intends using the proceeds to its working capital and general corporate purposes in Nigeria. This issuance under the CP Programme represents MTN Nigeria’s debut in the domestic debt capital market.

READ ALSO: Bond: Lagos to raise N100 billion for infrastructural development

GTBank 728 x 90

Details: Issuer;  MTN Nigeria Communications Plc.

Arranger: Chapel Hill Denham Advisory Limited.

Tenor: 180 days (commercial paper 1)     270days (commercial paper 2).

Discount Rate: 4.6890% – 4.8797% (commercial paper 1)    5.6078% – 5.7455% (commercial paper 2).

Implied Yield: 4.8000% – 5.0000% (commercial paper 1)   5.8500% – 6.0000% (commercial paper 2).


Offer Open Date: Thursday, May 28, 2020.


Offer Close Date: Thursday, June 4, 2020.

READ MORE: Nigerian Breweries set to raise N15bn through CP issuance

Settlement Date: Friday, June 5, 2020.

Minimum subscription: N1 million.

Issuance size: N100 billion (series 1 & 2 commercial paper issuance N50billion each).


Issuer Rating: Aa+ (Augusto); AA (GCR).

Tax consideration: Free and clear of withholding Taxes.

(READ MORE: Economy: Local corporates taking advantage of the low yield environment  )

MTNN is the leading telecommunications operator in the largest telecoms market in Africa. The company is the largest mobile operator and undisputed market leader in Nigeria, as measured by total mobile subscribers (c. 70 million), active data users (c. 26.8 million), revenue (almost 50% of industry), and profit pool.

MTN, MTN Nigeria Communications Plc. begins N100 billion commercial paper issuance today

MTNN is well-positioned for the long term, with its unmatched investments in its infrastructure – most expansive 2G, 3G, and 4G network, largest fibre network (c. 29,000km) that spans across Nigeria, largest physical and digital distribution platform, and wide range of spectrum holdings – and the exciting market opportunity Nigeria brings.

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MTNN is rated Aa+ by Agusto & Co. which reflects the company’s history of strong financial performance – record revenue in excess of N1 trillion (largest revs by a listed corporate), stable and healthy operating profit metrics (+53% EBITDA margin), comfortably low leverage (0.4x Net Debt/EBITDA, 10.8x interest coverage) that is predominantly local currency, and strong free cash flow.

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Fixed Income

United Capital Plc raises N10billion in Series 1 Bond Issuance

The bond issuance adds to itsbimpressive portfolio of innovative and landmark transactions it has structured, and it once again highlights its capabilities in the successful execution of novel debt capital market transactions.



United Capital: The good and the bad

United Capital Plc, has raised N10 billion in its Series 1 Bond issuance under a N50 billion Medium-Term Debt Programme registered with the Securities & Exchange Commission (SEC).
The capital raise places the company as the first Issuing House to issue a Corporate Bond in the history of the Nigerian Capital market.

The company’s Group CEO, Peter Ashade, explained that this action, being a first for any investment bank in the history of the Nigerian Capital market, strengthens United Capital’s track record as a force to reckon with in the investment banking terrain.


READ ALSO: Reports: China may defer loans owed by Nigeria and others

He said, “With an oversubscription of 24% investor, we believe this milestone accentuates the confidence in our Institution, and its ability to diversify our corporate funding sources, provide innovative financial solutions and our unwavering commitment to our esteemed clients.”

In line with the company’s goals for the year 2020, it served as a book runner on the deal, advising on the transaction structure, securing relevant regulatory approvals, and implementing a marketing strategy for the bonds. Its role also included making a compelling business case for the issuance, amongst others.

GTBank 728 x 90

Babatunde Obaniyi, Managing Director, Investment Banking, said, “the bond issuance adds to the impressive portfolio of innovative and landmark transactions we have structured, and it once again highlights our capabilities in the successful execution of novel debt capital market transactions.”

READ ALSO: United Capital records 2% profit increase in Q3 2019

The transaction having a tenor of 5 years, scored a 124% subscription, “with huge commitments from a diversified institutional investors’ base including Pension Fund Administrators and other players in the financial service space.”

He also explained how the strong outcome of the transaction re-affirms the confidence of its buy-side investors’ as well as its leadership in the financial services landscape.

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Fixed Income

Here’s what should be expected in Nigeria’s fixed income market this week

“Going into next week, there is an OMO maturity coming in. So, that will help to ensure balance.”



Fixed Income, Interbank Rates

The Nigerian fixed income market is expected to witness a moderate activity as well as moderate liquidity during the new week. This is according to Nkem Azinge, a Currency Trader at UBA who spoke to CNBC Africa.

According to her, the market is expected to witness an OMO maturity during the week which, by the way, is going to be a short trading week due to public holidays on Monday and Tuesday. The OMO maturity will help maintain balance, even as liquidity in the system will just be moderate.


READ MORE: Banking: Surprise hike in CRR-Implications for banks   

“Going into next week, there is an OMO maturity coming in. So, that will help to ensure balance. It is a short trading week. So, liquidity will just be moderate,” she said.

Earlier on during the interview, Azinge explained why there was also relative activity in the fixed income last week. According to her, the OMO market witnessed “buying activity as offshore players looked to deploy idle cash. We also saw banks buy as the market opened liquid.”

GTBank 728 x 90

However, the trend reversed by Thursday because investors took advantage of lower yield in the market to “take profit in anticipation of the PRR debit that was expected” and CBN’s FX auction.

On the other hand, the bond market witnessed mixed sentiments last week. This is because while a number of people took profit on their auction, others sold off in anticipation of a possible increase in supply.

In the FX market, the CBN re-opened its whole bill auction by pumping as much as $72 million into the market. This helped to ensure liquidity in the market.

READ ALSO: Global oil supply to drop by 12 million b/d to 9 year low, covid-19 resurgence still a concern – IEA

Azinge noted that it had been more than two months since such an auction occurred, a situation that led to very limited supply in the FX market. Therefore, the auction was a welcome development even as it indicated that the apex bank is now ready to meet growing dollar demands by Nigerians.


Note that the CBN’s Monetary Policy Committee (MPC) meeting is slated to take place on Thursday. This is also expected to influence activities in the fixed income market during the new week.


Watch Azinge’s entire interview with CNBC Africa by clicking here.

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