Funding rates to rise on expected low liquidity inflows

Stories by Chima Nwokoji |Lagos

 

THERE are expectations that funding rates will rise this week as  liquidity condition is expected to decline due to minute inflows from coupon payment (N17.9 billion) and Open Market Operation (OMO) maturity (N15.0 billion).

Meanwhile, interest in the secondary market is likely to be sustained according to dealers.

Similarly, the Debt Management Office (DMO), has announced the offer of two Federal Government of Nigeria (FGN) bonds for subscription.

The DMO stated this in a notice published on its website last week.

The first offer is a two-year FGN savings bond, which would be due on May 18, 2024, at an interest rate of 7.93 per cent per annum.

The second one is a three-year FGN savings bond, which would be due on May 18, 2025, at 8.93 per cent per annum.

According to the DMO, the opening date for the bonds is May 9, while the closing date and settlement date is May 18.

Coupon payment dates are August 18, November 18, February 18 and May 18.


“The bonds are offered at 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 million,” the DMO said.

IN CASE YOU MISSED THESE FROM NIGERIAN TRIBUNE


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