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Debt Securities

Official: Nigerian Treasury bills calendar for Q4 2020

Official: Nigerian Treasury bills calendar September – November 2020

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CBN Treasury Bills

The Central Bank of Nigeria (CBN) Published its Treasury Bills program for September to November 2020, indicating that it plans to raise about ₦918.5 billion in cash.

Check out: CBN says commercial banks can invest in Treasury Bills for now(Opens in a new browser tab)

The Central Bank sells treasury bills on a bi-weekly basis to investors and is one of the safest investments available. Interests are paid upfront and the principal paid in full upon maturity.

Learn to invest in treasury bills here

4th quarter of 2020

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3rd quarter of 2020

READ ALSO: Manufacturing PMI slide into recession territory

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2nd quarter of 2020

READ ALSO: $14 billion Dangote Refinery: uncertainty surrounds take-off

1st quarter of 2020

READ MORE: UPDATED: Nigeria received $5.85 billion capital inflows in Q1 2020 –NBS

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4th quarter of 2019

Treasury bills calendar, Treasury, bills, calendar, CBN

Calculate Treasury Bill

2 Comments

2 Comments

  1. Usman Abiola

    June 9, 2020 at 3:55 pm

    Alright

  2. Anonymous

    June 9, 2020 at 4:03 pm

    Good

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Debt Securities

DMO takes advantage of MPR cut, allots a total of N103.81 billion

Debt Management Office of Nigeria (DMO) has issued a total of N103.81 billion worth of bonds.

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President Buhari not to blame for increase in debt – DMO DG

In a swift response to the MPC rate cut, the Debt Management Office of Nigeria (DMO) has issued a total of N103.81 billion worth of bonds, which is about 71.59% of the total amount offered. The allotted amount comprises of N66.97 billion, N25.43billion, N6.81 billion, N4.60 billion respectively, for the 10, 15, 25, and 30-year tenors.

Recall that DMO had earlier announced its offering of the Federal Government bond worth N145 billion. The auctioning of the offer took place on September 23, 2020, and it was oversubscribed by N215.22 billion.

According to recent data by the Debt Management Office, verified by Nairametrics; out of the 78, 71,57,104 total bids for the bonds; 50, 13, 7, and 6 bids were successful.

(READ MORE:Nigerian Treasury Bills plunge to 3.39% per annum)

The average yield fell by 7bps to 7.21%, as the yield at the mid-end of the curve contracted the most 13bps to 7.31%. In the short and long end, yields fell by 1bps and 7bps to 4.16% and 9.57% respectively.

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READ: DMO reacts to alleged N1.08 billion corruption scandal rocking the agency

The bond auctioned was oversubscribed by 2.48 times. Bid to cover ratio was highest on the 30-year bond by 35.64 times, offered at 8.92% per annum. The 6-year, 15-year, 25-year, and 30-year bonds were offered at 6%, 8.52%, 8.9%, and 8.94% as against 6.70%, 9.35%, 9.75%, and 9.90% at the previous auction.

READ: DMO discloses facts about Chinese loans to Nigeria, states terms of the loans

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Analysts expect the relatively quiet trend to persist tomorrow, as the bulk of the attention will be skewed towards the bond auction.

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Debt Securities

United Capital Plc lists N10 billion fixed rate bonds

United Capital Plc has listed its N10bn, 5 Year 12.5% Senior Unsecured Fixed Rate Series I Bonds.

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United Capital Asset Management explains mutual funds’ positive performance

Today, September 22, 2020, the Nigerian Stock Exchange (NSE) announced the listing of United Capital Plc’s N10 billion, 5 year senior unsecured fixed-rate series bonds due 2025, with a 12.5% interest.

In a statement made available on the NSE website, and signed by Godstime Iwenekhai, Head, Listings Regulation, the medium-term bond will be issued as part of the N30 billion Debt Issuance Programme.

The subscription for the offer will last for twelve (12) days, as the offer will open on the 4th of May, 2020, and close on the 15th of May, 2020.

READ: UBA Plc H1’2020 results, a true reflection of its rightsizing decision? 

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READ: Some experts are uncertain of what to expect from money markets in H2 2020

Summary of the offer

  • Issuer: United Capital Plc
  • Offer date: 28th of May, 2020
  • Maturity date: 28th of May, 2025.
  • Units of sale: 10,000,000
  • Price: N1000 per units offered
  • Coupon rate: 12.5%

Redemption: Semi-annually, and payable in arrears on 28th November and 28th May of each year, up to and including the Maturity Date.

GTBank 728 x 90

READ: Savannah Petroleum secures $5 million initial tranche loan

Note: Senior unsecured bonds are a non-convertible corporate bond, that is not subordinated to any other unsecured indebtedness of the related issuer. Hence, it guarantees bondholders a quick payout in cases of default. While a fixed rate bond is a long-term bond, with an already specified coupon rate (Interest).

United Capital Plc, is a leading African financial and investment banking group, providing bespoke value-added service to its client. The firm was incorporated in Nigeria on March 14, 2004.

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Debt Securities

Nigerian Treasury Bill falls to 3.05% per annum

The DMO sold N2 billion on the 91-day paper and N8.385 billion on the 182-day.

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Implications of the new CBN stance on treasury bill sale to individuals, Nigerian Treasury Bills Market Witnessed Bullish Run on High Liquidity Last week

The latest data from the Treasury bill auctions concluded today revealed that Nigeria’s 364-day tenor dropped to 3.05%. On the other hand, Stop rates printed lower for the 91-day tenor at 1.09% and 182-day tenor, which went for 1.5%.

At the Treasury bill auction, the Debt Management Office sold N2 billion on the 91-day paper, N8.385 billion on the 182-day, and N148.361 billion on the 364-day bills.

Ladi Bello, a treasury dealer at Nigeria’s Tier 1 bank in a phone chat interview with Nairametrics, spoke on the just-concluded auction.

“At the Primary Market Auction conducted by the DMO yesterday, N159bn was rolled-over across the standard maturities on offer with demand skewed towards the new 1-Yr paper.

GTBank 728 x 90

“Stop rates on the short and mid-tenured maturities closed marginally lower than the preceding auction at 1.09% (↓1bps) and 1.50% (↓5bps) respectively, while the 1-Year paper remained unchanged at 3.05%,” Bello said.

Quick facts: The massive disparity between the subscriptions and the offers recorded suggests investors are willing to earn a negative real return, compared to the higher risk in other assets such as stocks and real estate.

Temitope Busari CFA, a leading investment professional in a note to Nairametrics also spoke on the low-interest rates the Federal Government of Nigeria was borrowing with. She said;

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“Yesterday’s Treasury bills stop rates were not far off from expectation and yields will likely continue southwards in the near to medium term.

“Additionally, we might see increased pressure on the short-end of the curve due to the dearth of instruments in the market versus excess liquidity.

“Technically, it’s more beneficial for the Government to borrow at the current levels to enhance our chances of recovery post-pandemic recession. Anecdotally speaking, the current interest rate regime is deemed punitive for savers, considering inflation is currently at 13.22%.”

(READ MORE: Nigerian Treasury Bills plunge to 3.39% per annum)

Basically, the CBN sells T-bills on a bi-weekly basis to investors and it is one of the safest investments available. Interests are paid upfront, with the principal paid in full upon maturity.

Understanding Treasury Bills: Basically, when the government goes to the financial market to raise money, it can do it by issuing two types of debt instruments – treasury bills and government bonds.

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Treasury bills are issued when the government needs money for a short period, while bonds are issued when it needs debt for more than, say five years. The issuance of treasury bills is also used as a mechanism to control the circulation of funds in the economy.

Treasury bills have a face value of a certain amount, which is what they are actually worth. However, they are sold for less. For example, a bill may be worth N10,000, but you would buy it for N9,600. Every bill has a specified maturity date, which is when you receive the money back.

The government then pays you the full price of the bill (in this case N10,000), giving you the opportunity to earn N400 from your investment. The amount that you earn is considered as the interest, or your payment for lending your money to the government.

The difference between the value of the bill and the amount you pay for it is called the discount rate and is set as a percentage.

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