Debt Management Office Activities Update Q1 2017" (Limit reached: 80 characters)
In the first quarter of 2017, the Debt Management Office of Nigeria conducted various activities in the debt market, including bond issuances and introductions of savings bonds. Details on auction, subscription, allotment of FGN bonds, Sukuk issuance, and FGN Savings Bond are provided in the update. The report also includes statistics on transactions in the secondary market and the introduction of new securities to diversify the investor base. Explore the key highlights and initiatives undertaken to manage Nigeria's debt effectively.
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Nigeria_coa Nigeria_coa DEBT MANAGEMENT OFFICE NIGERIA UPDATE ON THE DEBT MANAGEMENT UPDATE ON THE DEBT MANAGEMENT OFFICE OFFICE ACTIVITIES ACTIVITIES FOR FIRST QUARTER FOR FIRST QUARTER 2017 2017 BY BY D DEBT EBT M MANAGEMENT ANAGEMENT O OFFICE A AT T FFICE T THE HE M MEETING EETINGOF OFTHE THE C CAPITAL APITAL M MARKET MAY, MAY, 2017 2017 ARKET C COMMITTEE OMMITTEE, L , LAGOS AGOS
Nigeria_coa Nigeria_coa DEBT MANAGEMENT OFFICE NIGERIA TABLE OF CONTENTS TABLE OF CONTENTS FGN DOMESTIC BOND MARKET. FGN SAVINGS BOND. UPDATE ON THE PROPOSED SUKUK ISSUANCE. EUROBOND ISSUANCE.
Nigeria_coa Nigeria_coa FGN DOMESTIC BOND MARKET DEBT MANAGEMENT OFFICE NIGERIA Table 1: Auction, Subscription and Allotment of FGN Bonds (N Billion) Period Auction Subscription Subscription Rate (%) Allotment January 130,000.00 235,050.00 180.81 214,950.00 February 110,000.00 337,030.00 306.39 160,000.00 March 130,000.00 216,380.00 166.45 160,000.00 Total 370,000.00 788,460.00 213.10 534,950 Notes New Issues: The DMO issues 10-year Bond in Q1, 2017: 16.2884%FGN MAR2027. B. Secondary Market Table2: OTC Market and The Nigerian Stock Exchange (N Million) Period Number of Transactions Volume Consideration Number of Transactions Volume Consideration OTC Market The NSE 10,169,480,519,266.00 76,048 January 33,217.00 10,823,535.50 22 73,154,884.59 7,283,689.50 6,709,090,675,487.00 36,758 32,293,136.69 February 22,676.00 22 7,299,720.00 7,412,408,631,260.00 36,365 34,325,613.78 March 29,141.00 34 25,406,945.00 24,290,979,826,013.00 149,171 139,773,635.06 Total 85,034.00 78
Nigeria_coa Nigeria_coa INTRODUCTION OF FGN SAVINGS BOND DEBT MANAGEMENT OFFICE NIGERIA Issuance of Federal Government of Nigeria Savings Bond The DMO on behalf of the Federal Government of Nigeria introduced a retail bond into domestic bond market. Purpose Deepen the national savings culture. Diversify funding sources for the Government. Provide opportunity to all citizens irrespective of income level to contribute to National Development. Enable all citizens participate in, and benefit from the favourable returns available in the fixed income market. Debut Issuance Statistics Date of Issuance: Amount: Tenor: Coupon: Interest Payment: No. of Subscription: Listing: Mode of Distribution: March 13, 2017. N2.068 Billion. 2-year. 13.01% per annum. Quarterly. 2,575. The Nigerian Stock Exchange. Distribution Agents (Accredited Stockbroking Firms). 4
Nigeria_coa Nigeria_coa UPDATE ON THE PROPOSED SUKUK ISSUANCE DEBT MANAGEMENT OFFICE NIGERIA As part of the DMO s efforts to diversity the FGN securities investor base and the promote financial inclusion, the Government approved the Framework for the issuance of Sovereign Sukuk in the domestic and international capital markets. The Framework, which was developed by the DMO in collaboration with the Central Bank of Nigeria, the Securities and Exchange Commission (SEC) and Infrastructure Regulatory Commission has received the concurrence of the CBN and Office of the Accountant-General of the Federation as stipulated by law. Implementation of Framework The DMO is in the process of appointing Transaction Parties (TPs) through Open Competitive Bid in line with requirements of Public Procurement Act, 2007. It is important to note that the Government intends to use the proceeds of the issuance to fund specific infrastructural projects identified in the Appropriation Act that meet the requirements of Non-Interest Commercial Jurisprudence. This is in line with the Government s policy of purposeful borrowing, accountability and speedy development of infrastructure projects for sustainable growth and development. Subject to the passage of the 2017 Appropriation Act, the DMO plans to issue debut sovereign Sukuk before the end of the first-half 2017. 5
Nigeria_coa Nigeria_coa EUROBOND ISSUANCE DEBT MANAGEMENT OFFICE NIGERIA Nigeria Accessed the International Capital Market (ICM) in Q1, 2017. The Federal Republic of Nigeria successfully established a USD4.5 Billion Global Medium Term Note (MTN) and issued USD1.00 Billion Eurobond offering under its newly established Federal Government of Nigeria Global Medium Term Note (FGMTN) Issuance Programme on Federal 16, 2017 amidst volatility in emerging and frontier securities markets. The Notes was about 8 times oversubscribed demonstrating strong market appetite for Nigeria. Issuance Statistics Date of Issuance: Amount: Tenor: Coupon/Issue Yield: Maturity Date: Subscription: Listing: Use of Proceed: Yield(as at March 31, 2017): February 16, 2017. USD1.00 Billion. 15-year. 7.875% per annum. February 2032. USD7.8 billion, approximately 800 percent oversubscription. The London Stock Exchange, The Nigerian Stock Exchange and the Financial Market Dealer Quotation OTC Securities Exchange. Funding of capital expenditures in the 2016 Budget. 7.348%. 6
