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FGN ISSUES 2 AND 3 YEARS SAVINGS BOND FOR SEPTEMBER 2018 AT 11.3634% AND 12.364% PER ANNUM

The Debt Management Office (DMO) on Monday 3rd September 2018 announced that The Federal Government of Nigeria (FGN) has issued a new round of FGN Savings Bond which opened on the same day 3rd September 2018 and is slated to close today September 7th, 2018.

The 2-year bond is offered at an interest of 11.364%, while the 3-year bond is offered at an interest of 12.364%.

The details of the offer are as specified below;

Summary of August 2017 Offer

2-Year FGN Savings Bond due September 12, 2020: 11.364%

3-Year FGN Savings Bond due September 12, 2021: 12.364%

Opening Date:                                September 3, 2018

Closing Date:                                   September 7, 2018

Settlement Date:                          September 12, 2018

Coupon Payment Dates:           December 12th, March 12th, June 12th, and September 12th.

ISSUER:                                               Federal Government of Nigeria (“FGN”)

UNITS OF SALE:                              N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.

INTEREST PAYMENT:                   Payable Quarterly

REDEMPTION:                                 Bullet repayment on the maturity date.

STATUS

  1. Qualifies as securities in which trustees can invest under the Trustee Investment Act.
  2. Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors.
  3. Listed on The Nigerian Stock Exchange.
  4. Qualifies as a liquid asset for liquidity ratio calculation for banks.

SECURITY

Backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

Interested investors should contact the stockbroking firms appointed as distribution agents by the debt management office.

 

CBN RELEASES GUIDELINES FOR DIFFERENTIATED CASH RESERVE REQUIREMENT (DCRR) AND COMMERCIAL BONDS (CB) PROGRAMME

The Central Bank of Nigeria has issued guidelines for the release of funds to banks for lending from their Cash Reserve ratio and the issuance of longer-term corporate bonds.

The apex bank stated that it would lay emphasis on projects targeted at backward integration and those that would enhance Nigeria’s import substitution strategy.

DCRR Regime

Under this programme, deposit money banks interested in providing credit financing to greenfield (new projects) or brownfield (new/expansion projects) in the real sector (Agriculture/Manufacturing) may request for the release of their funds from their Cash Reserve Ratio (CRR) to finance the projects subject to the banks providing evidence that the funds shall be channelled towards projects approved by the CBN.

Objectives of the facility

  • Improved access to affordable finance for the manufacturing, agricultural, and other related sectors that are employment and growth stimulating.
  • Stimulate growth in employment elastic sectors

Activities to be covered

The activities to be covered will be greenfield projects and expansion projects in manufacturing, agriculture and other related sectors approved by the CBN. Emphasis will, however, be placed on greenfield projects.

Trading activities are prohibited under this facility and any attempt to buy a bank to falsify through the presentation of projects that do not meet the eligibility will be met by severe sanctions from the CBN.

Features of the loan

Tenor: A minimum of seven years.

Moratorium: A moratorium of two years.

The participating financial institution shall bear the credit risk.

Refinancing of existing loans is prohibited under the programme and any attempt to falsify information shall be met with serious sanctions.

The loans are to go for an all interest rate/charge of 9% per annum. Individuals are encouraged to report banks that charge above the prescribed maximum of 9% per annum.

The maximum facility shall be N10 billion per project.

Repayments shall be amortized and remitted to the CBN on a quarterly basis.

Eligibility Criteria

Participating Financial institution

Only institutions contributing CRR can participate in the DCRR programme

All financial institutions and the public are eligible to participate in corporate bonds

Borrowers

A borrower under the commercial bond programme shall be an entity incorporated in Nigeria under the corporate and allied matters act of 1990 and shall not have any non-performing loan with any financial institution.

Please refer to the link below for the guideline.

DOWNLOAD CBN GUIDELINES ON DCRR AND COMMERCIAL BOND

 

DOLLAR EXCHANGE RATE REPORT 27THTH AUGUST TO 7TH SEPTEMBER 2018

This report is a compilation of the dollar exchange rate at the official and parallel market from the 27th of August to the 7th  of September 2018.  The quoted parallel market prices are to serve as a guide to readers, as they represent the average price obtained daily from different black-market dealers in the Country.

S/N DATE CURRENCY OFFICIAL RATE  N PARALLEL MARKET RATE

N

  BUY SELL
07/09/2018 DOLLAR 306 358 361
      2. 06/09/2018 DOLLAR 306 358 361
      3. 05/09/2018 DOLLAR 306 358 361
      4. 04/09/2018 DOLLAR 306 358 361
      5. 03/09/2018 DOLLAR 306 358 361
      6. 31/08/2018 DOLLAR 306 357 361
       7. 30/08/2018 DOLLAR 306 357 361
      8. 29/08/2018 DOLLAR 306 357 361
      9 28/08/2018 DOLLAR 306 357 361
      10. 27/08/2018 DOLLAR 306 357 360

 

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