22 January 2013

Nigeria: Bonds - FG, Amcon, Crusader to Repay N3.142 Trillion to Investors in 2013

THE Federal Government, Asset Management Company of Nigeria, AMCON and Crusader Nigeria Plc, will redeem bonds valued at N3.142 trillion to investors this year.

A breakdown of the bonds, according to data obtained from Nigerian Stock Exchange, NSE, and Debt Management Office, DMO, revealed that the Federal Government will redeem N140 billion to investors, while corporate bonds issued by AMCON and Crusader valued at N3 trillion will be redeemed after maturity at the end of the year.

AMCON's N3 trillion bond, issued on April 6, 2011, in three tranches will mature December 31, 2013, while Crusader's bond, issued on September 30, 2008, will mature September 30, 2013.

A breakdown of the Federal Government bonds to mature this year shows that nine of the bonds, with maturity periods of between three and 10-year will be redeemed after maturity in 2013.

According to the data, one of the bonds has a maturity period of three years, two bonds have five-year maturity periods, five bonds have seven-year maturities, while one bond has a 10-year maturity period.

The 9.45 percent Federal Government, January 2013 bond, worth N10 billion, issued on January 25, 2008 will mature January 25, 2013; the N20 billion 5.5 percent Federal Government February 2013 bond, issued February 2010 will mature February 19, 2013 while the 15 percent Federal Government May 2013 bond, issued May 2006 and valued at N10 billion will be redeemed May 26, 2013.

The Federal Government will redeem in June 30, 2013, the 16 percent Federal Government June 2013 bond worth N20 billion; the 3.75 percent Nigerian Treasury Bills Rate Federal Government September 2013 worth N40 billion will mature September 30, 2013, while the 12.74 percent Federal Government October 2013 bond valued at N10 billion will mature October 27, 2013.

Also, the 10.98 percent Federal Government November 2013, the 10.50 percent Federal Government November 2013 and the 11.99 percent Federal Government December 2013 bonds valued at N10 billion each, will mature November 24, November 28 and December 22, 2013 respectively.

Federal Government, according to DMO, had issued a total of N2.4 trillion bonds since 2003 till date, while the total outstanding bond was N1.917 trillion.

The DMO, last year, appointed Stanbic IBTC as stockbroker for Federal Government bonds, while NSE, named Capital Bancorp; Cordros Capital; ESS/Dunn Loren Merrifield; FSDH Securities; Greenwich Securities and GTB Securities as market makers for bonds listed on NSE.

This was in line with the planned introduction of retail bonds trading on the Nigerian Stock Exchange.

Commenting on the initiative, Dr. Abraham Nwankwo, Director General, DMO, said retail investors, interested in the Federal Government bond could now do that through the secondary market, with the appointment of Stanbic IBTC Stockbrokers to manage the bonds.

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