According to a recent circular released by the DMO, the offer comprises two bonds: a N100 billion FGN JUL 2030 bondand a reopening of the N100 billion FGN JUN 2032 seven-year bond.

The FGN JUL 2030 bond has a five-year tenor and will mature in August 2030, while the reopened seven-year bond will mature in June 2032 at a coupon rate of 17.95%.

The auction is scheduled for August 25, 2024, with a settlement date of August 27, 2024.

Each bond is priced at N1,000 per unit, subject to a minimum subscription of N50,001,000, and in multiples of N1,000 thereafter.

For reopened issues where coupon rates are already fixed, the DMO explained that successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume on offer, including any accrued interest. Interest payments on the bonds will be made semi-annually.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged on its general assets, guaranteeing investors both interest payments and repayment of principal at maturity.

The DMO advised interested investors to submit their bids through any of the authorised Primary Dealer Market Makers (PDMMs), which include: Access Bank Plc, First Bank of Nigeria Ltd, Stanbic IBTC Bank Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, Standard Chartered Bank Nigeria Ltd, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, United Bank for Africa Plc, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, and Guaranty Trust Bank Ltd.

These are against 103,586.33 and 63.166 trillion posted last week.

Consequently, equity investors gained a total of N1.137 trillion for the week under review.

Similarly, all other indices finished higher with the exception of NGX Insurance, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Value, NGX Consumer Goods, NGX Oil and Gas.

Also, NGX Industrial Goods which depreciated by 6.91, 0.08, 1.11, 0.17, 0.34, 0.34 and 0.26 per cent respectively, while the NGX ASeM closed flat.

Meanwhile, a total turnover of 4.698 billion shares worth N85.043 billion in 72,562 deals was traded this week by investors on the floor of the Exchange.

This was in contrast to a total of 2.618 billion shares valued at N69.742 billion that exchanged hands last week in 47,953 deals.

The Financial Services Industry measured by volume led the activity chart with 3.470 billion shares valued at N40.791 billion traded in 34,364 deals: thus contributing 73.86 and 47.97 per cent to the total equity turnover volume and value respectively.

The Services industry followed with 407.032 million shares worth N2.226 billion in 4,996 deals.

Third place was the ICT Industry, with a turnover of 237.680 million shares worth N3.628 billion in 5,280 deals.

Trading in top three equities namely, Wema Bank Plc, FBN Holdings Plc and Universal Insurance Plc, measured by volume accounted for 1.679 billion shares worth N20.838 billion in 4,922 deals.

These contributed 35.74 per cent and 24.50 per cent to the total equity turnover in volume and value respectively.

Also, 51 equities appreciated in price during the week, lower than 82 equities in the previous week.

Thirty-nine equities depreciated in price higher than 18 in the previous week, while 62 equities remained unchanged, higher than 52 recorded in the previous week.

Multiverse Mining and Exploration Plc led 50 other advanced equities on the gainers’ table by 53.42 per cent to close at N12.35 per share.

Sunu Assurances also led the 38 other declined equities on losers’ table by 36.52 per cent to close at N7.30 per share.

Looking ahead, analysts at Cowry Asset Management Ltd., predicted bullish momentum at the equity market to persist in the coming week.

The analysts said this would be supported by anticipation of fourth quarter 2024 unaudited financial results and preparations for the dividend earning season.

They noted that positive sentiment is likely to prevail as stocks continue to reach new historical highs, bolstered by favourable market valuations and outlooks.

“Nonetheless, we advise investors to focus on fundamentally sound stocks to maximise returns amidst the ongoing rally,” the analysts said. (Source: NAN)

The first tenor is a 2-year FGN savings bond with a coupon rate of 9.465% per annum due March 15, 2025.

The second tenor is a 3-year FGN savings bond with a coupon rate of 10.465% per annum due March 15, 2026.

The minimum subscription amount for these tax-free papers is N5,000, with a maximum subscription amount of N50 million.

The settlement date is March 15, 2023, with coupon payment dates of June 15, September 15, December 15, and March 15.

According to DMO, interested investors can buy these bonds from any licensed brokerage firm in the country.

The FGN savings bond is a safe debt instrument backed by the Nigerian government’s full faith and credit, and it can be used as a liquid asset in the calculation of banks’ liquidity ratios.

It’s also a qualified security under the Trustee Investment Act, which makes it an appealing option for trustees.

“This offering presents an opportunity for retail investors to invest in a low-risk, high-yield asset with a low entry barrier, which could potentially enhance their investment portfolio,” DMO said.

The DMO announced the bond auction, listing the first offer as a N90 billion February 2028 FGN bond with a 13.98 percent annual interest rate (10-year reopening).

The second is a N90 billion April 2032 FGN bond with an annual interest rate of 12.50 percent (10-year reopening).

There is also a N90 billion April 2037 FGN bond with a 16.24 percent annual interest rate (20-year reopening).

The fourth offer is an April 2049 FGN bond, also valued at N90 billion, at an interest rate of 14.80 percent per annum (30-year re-opening).

It announced that the auction date is February 13, while the settlement date is February 15.

According to the DMO, for the re-opening of previously issued bonds, 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 is payable semi-annually, while bullet repayment (principal sum) is on the maturity date.

“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.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They also qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for funds among other investors.

“They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange,’’ the DMO said.