Dear Investor,
Please be informed that there will be a primary auction of Nigerian Treasury bills on Wednesday, 15th March, 2017 for the following maturities:
|
TENOR
|
MATURITY
|
VOLUME MATURING (NGN)
|
VOLUME ON OFFER (NGN)
|
|
91 DAYS
|
15-JUN-17
|
39,006,249,000
|
39,006,249,000
|
|
182 DAYS
|
14-SEPT-17
|
48,453,841,000
|
48,453,841,000
|
|
364 DAYS
|
15-MAR-18
|
83,049,440,000
|
126,304,849,000
|
Below are the rates in the secondary market obtained from the FMDQ OTC Securities Exchange as at 10th
of March, 2017:
Rates
in the secondary market in the last one week have remained relatively
stable from previous weeks. Due to current market conditions, rates
at the primary auction may close around what we have in the secondary
market.
Following
the table above, the rates at which Capital Bancorp Plc (CBP) will bid
at this auction through a licenced Primary Dealer and Market Maker
(PDMM) are as follows:
|
91 days
|
13.00%
|
|
182 days
|
16.50%
|
|
364 days
|
17.50%
|
NOTE: Settlement for this auction will be on Thursday, 16th March, 2017
NEW MARKET STRUCTURE
Given
the addition of the new Federal Government of Nigeria Savings Bond to
the Nigerian market which has commenced today (Monday 13th of
March 2017), the Federal government
reviewed the investment market structure for investing in Nigerian
Treasury Bills, FGN Bonds and FGN Savings Bonds; the new market
structure for the FGN securities market will be as follows:
Ø
FGN
Savings
Bonds
–
minimum
subscription
N5,000,
maximum
N50,000,000
Ø
Nigerian Treasury Bills
–
minimum
subscription
N50,001,000
Ø
FGN Bonds
–
minimum
subscription
N50,001,000.
CBP’s POLICY ON BIDS
All
clients’ bids (individuals and institutions) shall be submitted through
licenced Primary Dealer and Market Makers (PDMMs). All bids (by
individuals
and institutions) will be pooled together by tenor (91, 182 and 364
days) and a single bid will be submitted for each tenor at rates to be
determined by CBP after carefully considering our clients’ interest and
analysis of the market.
However, CBP will only accept bids that are N500,000 and above
for submission
to PDMM.
Regarding
the new market structure, CBP will pool funds together up to or above
the N50,001,000 minimum amount required to invest in
the treasury bill market. However, in the event that we are unable to
pool up to the minimum amount required to bid, CBP will invest the funds
in other alternate investment opportunities while aiming to gather the
minimum subscription amount required before
the next primary auction.
The
pooling of bids is necessitated as a result of challenges encountered
by the PDMMs in processing a single client's Treasury bill bid from
start
to finish on the CBN platform. Therefore, this approach is being
adopted to improve efficiency and serve you better. CBP however does not
commit that the bid rates proposed above will be successful.
Notwithstanding, we would continue to seek alternative investment
opportunities to meet your investment needs.
An
investor will only be able to bid at individual rates when they have
fully fulfilled our KYC documentation and requirements as well as
investing
the minimum amount of N50,001,000 required to participate in the
treasury bill bidding process.
CBP’s POLICY ON PAYMENT
All clients are expected to have funded CBP’s bank account at the point of submission of bids to CBP; not later than
12 noon tomorrow, 14th of March 2017. CBP will
not submit any bid that is not funded or accompanied with a written
commitment to bid. CBP shall return excess fund or money for
unsuccessful bids not more than 24 hours after the release
of the auction result to the investor.
HOLDING OF THE INSTRUMENT
CBP shall hold the instrument with a CBN recognised Custodian on behalf of the client till maturity.
Please note that clients will be required to comply with the Know Your Customer (KYC) requirements.
CHARGES
Client
will be required to pay 0.5% of Face Value of the Treasury bill as
charges for the transaction (inclusive of PDMM and custodian charges)
plus
a transfer charge of N500 flat. Note that all the charges will be paid
together with the consideration for the instrument by client at the
point of purchase.
CONTACT
Kindly contact any of our staff below for any interests:
1.
Seun
0806 720 9845 or sfajemirokun@capitalbancorpng.com
2.
Bode 0802 418 5046 or
badebayo@capitalbancorpng.com
3.
Kunbi 0808 067 5225 or
aadeyemi@capitalbancorpng.com
Kind Regards.
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