BOKISSONTHRONE: Treasury Bills Auction for 31st May, 2017 (Enjoy Upfront Interest)

Friday, May 26, 2017

Treasury Bills Auction for 31st May, 2017 (Enjoy Upfront Interest)

Dear Investor,

Please be informed that there will be a primary auction of Nigerian Treasury bills next week Wednesday, 31^st May, 2017 for the following maturities:

TENOR	MATURITY	VOLUME MATURING (NGN)	VOLUME ON OFFER (NGN)
91 DAYS	31-AUG-17	26,143,538,000	26,143,538,000
182 DAYS	30-NOV-17	11,005,934,000	11,005,934,000
364 DAYS	31-MAY-18	80,000,000,000	80,000,000,000

Below are the rates in the secondary market obtained from the FMDQ OTC Securities Exchange as at 25^th of May, 2017:

Rates in the secondary market in the last one week have remained slightly 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, 1^st June, 2017

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 predetermined 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.

The pooling of bids is necessitated as a result of the new market structure and 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.

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 12noon Tuesday, 30^th of May 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: