State governments have been issued bonds
worth over ₦600 billion to fund infrastructure development in the past
10 years, statistics released by Dr Abraham Nwankwo, the
Director-General of Debt Management Office (DMO), said on Tuesday.
The debt office said that the amount was raised between 2005 and 2014 to refinance existing loans.
Nwankwo said that Nigerian corporate
institutions, following the development of domestic bond market between
2005 and 2014 had issued debt instruments worth ₦223 billion.
“Following the development of domestic
bond market between 2005 and 2014 Nigerian corporate institutions have
issued debt instruments of about ₦223 billion, thereby contributing to
the development of the real sector,’’ Nwankwo said.
He said the market also attracted
supranational issuers of debt securities such as the International
Finance Corporation (IFC), a member of the World Bank Group and Africa
Development Bank.
The director-general said that enviable
achievements recorded in the development of the Federal Government’s
Bonds Market earned international recognitions for the FGN bond market.
Nwankwo said the achievements included
an active secondary market, creation of sovereign yield curve with
tenure of up to 20 years and diversification of the investor base for
fixed income securities.
He said the achievements recorded in the
development of the domestic debt management led to the endorsement of
the FGN bond market by reputable international financial institutions.
He said these recognitions were the
inclusion of FGN bonds in the widely used JP Morgan’s Government Bond
Index-Emerging Markets (GBI-EM) and Barclays Capital’s Emerging
Markets-Local Currency Government Bond Index (EM-LCBI) in October 2012
and March 2013.
He said that the development led to significant in flow of foreign portfolio investments in the country.
According him, DMO will continue to
strengthen and deepen the FGN bond market for enhanced liquidity through
the issuance of benchmark bonds and introduction of other varieties of
debt instruments.
DMO on July 13, 2015 listed outstanding
FGN bonds amounting to ₦4.85 trillion and Nigerian Treasury Bills (NTBs)
worth ₦2.80 trillion on the FMDQ OTC platform.
Bola Onadele, FMDQ Managing Director,
described the listing as yet another feat for the organisation and
reiterated the commitment of the OTC securities exchange to be
innovative and credible, in support of the Nigerian economy.
Onadele said FMDQ would continue to
provide an efficient platform for the registration, listing, quotation
and valuation of debt securities to improve transparency, integration of
the domestic and international markets through enhanced trade
visibility.
He said the company was committed to
improve market surveillance, global presence and competitiveness,
enhance secondary market liquidity and effective price formation.
(NAN)
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