The Nation Newspaper

Category: Money

  • ‘DMBs provide 70% of total banking credit’

    The deposit money banks (DMBs) provide close to 70 per cent of total credit in the banking system, FBN Capital has said.

    It said that net loans from the banking system including the Central Bank of Nigeria (CBN) to the private sector, defined as the domestic economy other than the Federal Government, contracted by 0.9 per cent month on month in December and increased by just 7.4 per cent year on year.

    It said the modest rate of loan growth over the year may surprise, given GDP growth of more than six per cent. “We could query both data series but we can also observe that the marked slowdown of lending growth since the twin bank bailouts of 2009 has had a limited effect on Gross Domestic Product expansion,” it said.

    FBN Capital said although some might argue that the banks’ cash reserve requirement (CRR) of 12 per cent inhibits lending growth but the growth was subdued before the increase in the CRR by the Monetary Policy Committee in July 2012.

    “Over this period the banks have enjoyed higher and safer returns in the government debt market although this advantage has been eroded by the yield compression of about 600bps on FGN bonds and NTBs since August 2012,” it said.

     

  • Flour Mills notifies NSE on merger

    The Nigerian Stock Exchange (NSE) said Flour Mills of Nigeria Plc has notified that its board and that of the Niger Mills Company Limited, have been in discussions and negotiations with regard to merging their respective businesses.

    Report from the Exchange stated that the proposed Scheme of Merger will be undertaken pursuant to Part XII of the Investment and Securities Act No. 29 of 2007.

    Flour Mills currently holds 99.97 per cent equity in Niger Mills and the proposed merger will facilitate the consolidation of the companies’ operations and processes into a single enlarged entity.

    However, the proposed merger, according to the notification, is expected to build a more efficient company, positioned to create potential savings through the optimisation of overhead costs, particularly administrative costs relating to maintaining two distinctive entities.

    The report said the merger will be achieved by the transfer of all of the assets, liabilities and undertaking of Niger Mills to Flour Mills, in exchange for which ordinary shares of Flour Mills will be issued to the minority shareholders of Niger Mills or alternatively a cash consideration in lieu of the allotment of the said Flour Mills shares be made to the minority shareholders. Upon the Scheme becoming effective, all shares held in Niger Mills shall be cancelled.

    The Board of Flour Mills believes that the enlarged Entity will consolidate Flour Mills’ leading position in the flour milling industry, accessing positive economies of scale and realizing significant synergies through enhanced operational and administrative efficiency and a unified product delivery platform, and thereby providing immense benefits to the shareholders and customers of Flour Mills.

    The Federal High Court has directed that separate meetings of the shareholders of the merging entities be convened at a Court Ordered Meeting scheduled to hold on 20th February, 2012; at Zinia Hall, Eko Hotel and Suites, Victoria Island, Lagos by 10.00 a.m. Entitled to attend and vote at the meeting are those shareholders, whose names appear on the Register of members on 29th January, 2013, the report added.

    Meanwhile, trading on the floor of the NSE in the last one week of four trading sessions saw a turnover of 2.612 billion shares worth N19.152 billion in 27,186 deals in contrast to a total of 3.259 billion shares valued at N21.636 billion that exchanged hands the previous week in 34,651 deals.

    The Financial Services sector was the most active accounting for 1.969 billion shares valued N11.081 billion carried out in 16,303 deals.

    The top three sectors represented by the Financial Services, Consumer Goods and Services sectors accounted for 2.353 billion shares valued at N16.900 billion traded in 21, 988 deals, thus accounting for 90.06 per cent, 88.24 per cent and 80.88 per cent, of the volume, value and number of deals respectively.

    Also traded last week was 196 units of New Gold Exchange Traded Funds (ETFs) valued at N504,481 which exchanged hands in four deals in contrast to a total of 565 units valued at N1.440 billion transacted last week in fourdeals. There were no transactions through the stock market in the FGN Bonds, State/Local Government Bonds and Corporate Bonds/Debentures sectors.

    The NSE All-Share Index appreciated by 2.12 per cent to close Friday at 31,583.49 while the market capitalization of the listed equities also appreciated by 2.12 per cent to close at N10.103 trillion.

    Likewise all the NSE sectorial indices appreciated: the Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Banking, Bloomberg NSE Insurance, Bloomberg NSE Oil/Gas and NSE Lotus II appreciated by 2.41 per cent 0.06 per cent, 1.41 per cent, 1.26 per cent, 1.20 pet cent and 3.26 per cent respectively.

     

  • Fidelity asks Citi to raise $100m debt

    Fidelity Bank Plc has mandated Citi to raise $100 million via a two-year loan from the international debt market, to help increase its foreign currency lending capacity, a senior executive told Reuters last Friday.

    Head of Strategy Francis Ikenga said Citi was in the debt market to secure the loan through a book building process and that yield on the paper will be determined at the end of the transaction. Ikenga said Fidelity had seen an increase in demand for foreign currency loans from all sectors of Nigeria’s economy especially within the oil and gas and telecom sectors.

     

  • ‘MPR shift in Q1 unlikely ’

    The Central Bank of Nigeria’s (CBN’s) Monetary Policy Committee (MPC) may not reduce the Monetary Policy Rate (MPR) within the first quarter, analysts at Cordros Capital Limited have said.

    The CBN had on Monday, decided to retain the MPR at 12 per cent for the eightieth time consecutively, since November 2011, due to inflationary concerns and uncertainty in the global economy.

    The CBN retained the MPR at 12 per cent with a corridor of plus or minus two per cent, Standing Deposit Facility at 10 per cent and Standing Lending Facility at 14 per cent. It also maintained the Liquidity Ratio (LR) at 30 per cent and Cash Reserve Ratio (CRR) at 12 per cent.

    The firm explained that the decision means that other forms of monetary policy, such as Open Market Operations (OMO), will continue to be the preferred method for managing liquidity.

    It said that inflation still remains above the CBN’s single-digit target, however pressures are expected to ease in upcoming months, all things being equal.

    “Monetary easing may prove difficult in the wake of the new oil benchmark approved by the National Assembly, from $75 to $79, which increases the Government’s budget and potentially widening the budget deficit in 2013. Quests to stabilize exchange rate means aggressive interest rate cuts are unlikely,” it said.

    FBN Capital said that the CBN was concerned that government spending could offset the benign inflation outlook as two of the 10 members of the MPC in attendance voted for a cut of 25 basis points in the policy rate. Caution in the face of uncertainties and fragilities prevailed, however.

    The Committee members argued that the stable exchange rate had helped to contain food price inflation in 2012. It also highlighted the food shortages which had arisen as a result of the floods in the agricultural belt.

     

     

     

     

  • CBN: Fed Govt earnings hit N841.5b

    CBN: Fed Govt earnings hit N841.5b

    Federal Government earned N841.56 billion last November, the Central Bank of Nigeria (CBN) Economic Report has shown. This represents an increase of 3.8 per cent above the previous month’s level.

    The report showed that at N630.95 billion, gross oil receipts exceeded both the monthly budget estimate and the preceding month’s level by 14.1 per cent and four per cent, respectively.

    The apex bank attributed this to the rise in receipts from petroleum profit tax (PPT) and royalties. Non-oil receipts, stood at N210.61 billion, 17.3 per cent lower than the monthly budget estimates, but exceeded the receipts in the preceding month by 3.2 per cent.

    It said that Federal Government estimated retained revenue was N245.44 billion, while total estimated expenditure was N397.01 billion. The fiscal operations of the Federal Government resulted in an estimated deficit of N151.56 billion, as against the estimated monthly budget deficit of N94.68 billion.

    The end-period headline inflation rate (year-on-year) was 12.3 per cent, 0.6 percentage point above the level in the preceding month. Inflation rate on a twelve-month moving average basis was 12.1 per cent, compared with 11.9 per cent in the preceding month.

    According to the regulator foreign exchange inflow and outflow through the CBN were $4.27 billion and $3.84 billion, respectively, resulting in a net inflow of $0.43 billion. Foreign exchange sales by the CBN to the authorised dealers amounted to $1.64 billion, showing an increase of 13.8 per cent over the level in the preceding month.

    “Relative to the level in the previous month, the average naira exchange rate as against the dollar appreciated in the Wholesale Dutch Auction System (WDAS) segments by 0.01 per cent, but depreciated in the inter-bank and bureau-de-change segments by 0.2 per cent apiece,” the report revealed.

    However, non-oil export receipts declined by 30.50 per cent below the level in the preceding month due to the decline in agriculture, manufactured products and minerals sub-sectors. World crude oil output stood at 90.47 million barrels per day (mbpd), while demand was 90.01 mbpd, compared with 90.22 mbpd and 89.52. mbpd supplied and demanded, respectively, in the preceding month.

    According to the CBN, growth in the major monetary aggregate was modest at the end of the reviewed month. The CBN said available data indicated mixed developments in deposit rates, while maximum and prime lending rates trended upward. The value of money market assets outstanding increased, owing, largely, to the rise in the value of Federal Government bonds outstanding.

     

  • Sterling Bank’s customers win SUV, cash prizes

    Sterling Bank’s customers win SUV, cash prizes

    Sterling Bank at the weekend gave out a brand new Sport Utility Vehicle (SUV) to one of its loyal customers – Amadi-Nna Homa – the grand prize winner in its savers’ promo.

    The winner’s account is domiciled at the Trans Amadi (Port Harcourt) branch of the bank.

    Other four customers -Enilari Oladipupo, Musa Adamu, Adeleke Olusegun and Nunu-Janet Aduka won N1 million each while Badmus Dauda, Danjuma Ringin, Lawal Kadijat & Maruf and Nkiri Denis among others won N500, 000 each. There were also consolation prizes such as home theaters and refrigerators won by 10 other customers.

    The star prize winner won by saving a minimum of N100,000 for three months; customers that won N1 million saved N50,000 for three months while those that won N500,000 saved a minimum of N25,000 for three months.

    The winners emerged after electronic draws witnessed by Consumer Protection Council (CPC), National Lottery Regulatory Commission (NLRC), the media and members of staff of the bank.

    Sterling Bank’s Head, Retail Markets, Donald Osa-edokpolor said rewarding these customers is a confirmation of the bank’s integrity and commitment to its customers. According to him, the exercise is also part of the lender’s commitment to financial inclusion, which entails reaching the unbanked segment of the population with financial products.

    He said the bank would continue to support its loyal customers in growing their businesses and meeting their personal needs.

    He advised the bank’s customers to cultivate savings culture to enable them save funds for the rainy day.

    The bank’s Group Head, Liability Products and Bancassurance, John Akingbade, said 70 winners have, so far, emerged since the bank commenced the promo about six months ago.

    He said the winners have collected their prizes, adding that the promo has achieved its objective of achieving financial inclusion within the banking sector.

    Chief Planning, Research and Statistics, CPC, Susie Odiete, said all the draws that produced the winners were transparent. She said that the council has insisted on electronic draws because of the transparency of such process adding that all the past winners have been contacted, and they all confirmed, that the have received their prizes.

  • FAAC inflows, matured OMO slash interbank rate

    FAAC inflows, matured OMO slash interbank rate

    The inter-bank rate last week fell by 187 basis points over injections of the monthly Federal Accounts Allocation Committee (FAAC) funds and matured Open Market Operation (OMO) bills. From N567 billion appropriated among the three tiers of government on January 14, N283.65 billion hit the market, in addition to matured OMO bills, to douse rising money market rates.

    Also, the Central Bank of Nigeria (CBN’s) liquidity management remained active and supported by the Monetary Policy Committee’s decision to leave the Monetary Policy Rate (MPR) unchanged at 12 per cent on November 20.

    Fixed Income & Currencies Analyst AT Ecobank Nigeria, Olukunle Ezun said the policy has manifested in the frequency of CBN’s market interventions as seen in the mop up of over N110 billion on January 15 to reinforce its liquidity management efforts, in addition to over N956.8 billion treasury bills and OMO bills sold year to date to ensure price stability.

    Also, call and seven-day money market rates fell 12.7 per cent and 12.9 per cent on January 17 while the three-month Nigeria Interbank Offered Rate (NIBOR) also fell 14 per cent, though fewer activities are done on the tenor. The secured lending (Open Buy Back) fell 12.3 per cent for commercial banks. Mr Ezun explained that with market liquidity of about N450 billion, the CBN is expected to mop up to ensure price stability.

     

    Naira

    The naira fell, extending its worst week against the dollar in nine, on speculation the government spending will rise and as corporate demand for foreign exchange increased after the central bank reduced supply.

    The currency weakened less than 0.1 per cent to N157.1 a dollar and had retreated 0.5 per cent last week, the worst five-day performance since November 16, according to data compiled by Bloomberg.

    “Given the intended liquidity injections and assumption of dollar-naira at N160 in the 2013 budget, the naira might come under pressure due to increased government spending,” analysts said.

    The CBN sold $120.30 million last week at auction, a 38 per cent decline from the previous week, according to data on its website. The regulator sells foreign exchange at auctions on Mondays and Wednesdays to stabilise the naira.

    Also, yields on naira debt due 2022 fell 10 basis points to 11.27 per cent while borrowing costs on the nation’s $500 million of Eurobonds due January 2021 declined two basis points to 3.716 per cent last Friday. Nigeria’s inflation rate eased to 12 per cent in December, from 12.3 per cent a month earlier, the first decline in three months as the effects of flooding that damaged agricultural output began to recede.

     

    Banks’ deposits

    Five out of the 21 banks operating in the country control 53.14 and 51.64 per cent deposits and assets within the sector, CBN Financial Stability Report for June 2012 released last week indicated.

    The report showed that the figure was an improvement from 52.06 and 53.01 per cent deposits and assets respectively recorded at the end of second half, 2011.

    The report endorsed by CBN Deputy Governor, Financial System Stability, Dr Kingsley Moghalu said the market share of the largest bank with respect to assets and deposits, stood at 14.05 and 15.60 per cent respectively. This he said, is also an improvement when compared with 13.84 and 15.15 per cent respectively recorded a year ago.

    “The average market share of assets and deposits of five largest banks stood at 51.64 and 53.14 per cent respectively compared with 53.01 and 52.06 per cent at the end of second half, 2011. The market share of the largest bank with respect to assets and deposits, stood at 14.05 and 15.60 per cent respectively. This compared with 13.84 and 15.15 per cent in 2011,” the report said.

     

    AMCON

    The Asset Management Corporation of Nigeria (AMCON) also recovered 10 landed properties, a vessel and other assets from a firm.

    A statement from AMCON, said the recovery followed a court order granted on October 19, 2012 by Justice Idris of the Federal High Court and executed last Wednesday.

    It explained that counsel to AMCON, Olisa Agbakoba & Associates, secured the court order to take over the movable and immovable properties as well as freeze bank accounts of the debtors, pursuant to provisions of the AMCON Act 2010. The firm and its Managing Director reportedly have an outstanding of about N27 billion in AMCON’s books.

    “The Act empowers AMCON to undertake recovery measures against debtors who have refused to pay up their debts that have become non-performing and inimical to the financial system. The non-performing loan was acquired by AMCON under its mandate to clean up non-performing loans from the Nigerian financial system,” it said.

     

    Banks’ credit

    Credit by Nigerian banks is expected to rise by 20 per cent within the year, Renaissance Capital (RenCap), an investment and research firm has said.

    In an emailed report obtained by The Nation, RenCap said that Nigerian banks excite it most within the Europe, Middle East and Africa (EMEA) banks context in 2013. According to the firm, with its growth expectations for Gross Domestic Product (GDP) of 6.7 per cent, the Nigeria market should benefit from accelerating top-down trends.

    It tipped United Bank for Africa, Access Bank, Zenith Bank and Skye Bank as lenders that could achieve a double-digit Earnings Per Share growth across the board. It also said West to East African banks are also viable performers within the year, with the Kenyan elections a potential headwind.

    RenCap said Equity Bank remains its pick of the bunch on a relative basis. “Within the liquid space, this could be Russian banks’ year. Although we are more conservative with our outlook for the sector at the start of 2013 then we were throughout 2012, market appetite has begun to rise for risk assets,” it said.

    Inflation

    Ahead of today’s meeting of the MPC, analysts have forecast that CBN will leave both the MPR and Cash Reserve Ratio (CRR) unchanged at 12 per cent, until broad-based macroeconomic stability has been achieved.

    MPR is the benchmark rate by which the CBN determines interest rate while CRR is a portion of banks’ deposits kept by banks with the CBN.

    Head African Markets, Standard Chartered, Razia Khan, explained that with the threat of a higher benchmark crude price being adopted in the 2013 budget, there is likelihood that the CBN will today, leave the rates unchanged.

    She said there are a number of interesting points to note about the December inflation figure, which decelerated to 12 per cent year to year from 12.3 per cent earlier. According to her, the key driver of Consumer Price Index appears to have been a rise in core inflation – up to 13.7 per cent year to year in December.

     

    BDCs

    The CBN has warned authorised dealers against patronising 236 Bureau De Change (BDC) operators whose licences were revoked a week ago. In circular to all authorised dealers, BDCs and general public, CBN Director, Trade and Exchange Batari Musa advised that any foreign exchange transaction, including sale to and purchase from the affected BDCs is illegal.

    He also said transfer of funds through the affected BDCs and or on their behalf is no longer allowed. Some of the affected BDCs include A.F.A. BDC, A.I.A. BDC, Acclaim BDC, African Shelter BDC, Afrinvest BDC and All States BDC. Others are AMD BDC, AMX BDC, BTC BDC, Kano Agency BDC and IAS BDC.

    The CBN had on October 2, 2012 published the list of BDCs that were in contravention of 3.5 of the CBN BDC Guidelines, which stipulates that every BDC shall maintain a mandatory caution deposit of $20,000 with the apex bank.

     

    MPR

    An economist, Henry Boyo, has called for a policy shift in the monetary policy stance of the CBN to enable the economy and real sector to experience desired growth.

    He spoke at a roundtable organised by Save Nigeria Group (SNG) with theme, Fiscal and monetary policy crises – Way out. The said the economy is not growing because the apex bank policy has failed to bring inflation and interest rate within a single digit, thereby stifling operations of the productive sector of the economy.

    He said faulty monetary policy stance promotes corruption and weakens the naira because stakeholders involved in the exchange of the dollar allegedly benefit from it.

    However, CBN Director of Research, Charles Mordi, faulted Boyo’s position, saying he is misinforming the public, adding that such economic propositions are not correct.

    He said the CBN agrees there is need for a single interest rate, but it is difficult to have a strong naira, low interest rate and low inflation at once especially in a developing economy like Nigeria.

    According to him, low interest rate is desirable, but so many factors have to be in place to achieve that.

    He said the monetary policy direction of the CBN is in order and has assisted the country in improving its growth trajectory.

     

    GDP

    The Federal Government plans to change its Gross Domestic Product (GDP) base year to 2008 from 1990 will add N400 billion to its nominal GDP, Managing Director, Financial Derivatives Company (FDC), Bismarck Rewane, has said.

    Speaking during the Finance Correspondents Association of Nigeria (FCAN) Roundtable on the Economy in Lagos, he explained that nominal Gross Domestic Product (GDP) is estimated at $273.8 billion.

    According to him, by carrying out the exercise, Nigeria will be emulating Malaysia and South Africa, which rebased their GDPs from 2000 to 2005 each and Ghana from 1993 to 2006.

    He said rebasing the GDP would make the rich richer and the poor poorer while the country’s growth trajectory will nosedive.

     

    Bank to bank report

    Standard Chartered Private Equity and Ashmore has announced that they have invested in GZI, an aluminium can manufacturer based in the country.

    In a statement, Head of Standard Chartered Private Equity in West Africa,Yemi Osindero, said: “We are excited to have invested in a long-term Standard Chartered client that is building a world-class can manufacturing company. From its initial production plant in Nigeria, GZI has followed a very profitable growth path, and established itself as an integral member of Nigeria’s beverage sector.”

    He said the investment will assist in growing GZI into a market-leading, pan-African beverage-packaging firm.

    Ecobank Nigeria has given out cars to star winners in its Win Big promo. The winners include Green James Rose (King Jaja branch), who won the star a Nissan SUV and Margaret Omisakin (Ile-Ife branch), who also won a Nissan Salon car. The winners emerged from 1,519,340 qualified entries for the grand prize.

     

     

  • NSE lists 2.897b new shares

    · Market cap adds N55b

    ADDITIONAL 2,897,207,843 ordinary shares of 50 kobo each at 50 kobo per share were added to the outstanding shares of Linkage Assurance Plc last Friday at the Nigerain Stock Exchange (NSE).

    The supplementary listing, it was learnt, was as a result of a special placement carried out by the firm.

    The All-Share-Index also appreciated by 5.91 per cent, adding 1,725.17 to close at 30,927.18 points while the market capitalisation grew by N554 billion or 5.93 per cent to close at N9.893 trillion.

    Meanwhile,bullish sentimentsretained significant stronghold on the market as highlighted by the degree of advanced stocks control over transacted deals, volume and money votes.

    Last week, some stocks attracted more attention from stakeholders. Academy Press was up 57.41 per cent, Sterling Bank down 31.1 per cent, UAC-prop down 28.9 per cent and CCNN down 27.2 per cent. On the flip side John Holt, Unilever and Cutix recorded the largest losses of 21.9 per cent, 5.1 per cent and 5.0 per cent at the close of the week.

    NB had a volatile week, sustained demand led to a strong finish and a 5.3 per cent mark-up at the close of the week. International Breweries, which was also on the up-tick during the week, picked up 8.4 per cent while Guinness recorded a slimmer 0.3 per cent.

    The building materials sector was also in line with sentiments; Dangote Cement bagged 11.1 per cent while Ashaka cement and Lafarge Wapco booked 9.0 per cent and 4.5 per cent.

    A turnover of 3.259 billion shares worth N21.636 billion in 34,651 deals was traded last week in contrast with a total of 2.160 billion shares valued at N16.998 billion that exchanged hands in 31,241 deals.

    The Financial Services sector continued its vibrant dominance in the activity chart, recording the highest trading volume of 2.477 billion shares valued at N15.399 billion in 22,627 deals, representing 76.01 per cent.

    The Conglomerates sector followed with a volume of 423.299 million shares valued at N771.622 million traded in 1,117 deals.

    The Consumer Goods sector was third with 141.525 million shares valued at N3.673 billion traded in 5,671 deals.

    The top three sectors accounted for 3.042 billion shares valued at N19.844 billion traded in 29,415 deals, thus accounting for 93.34 per cent, 91.72 per cent and 84.89 per cent, of the volume, value and number of deals.

    Transnational Corporation of Nigeria Plc of the Diversified Industries subsector was the most active with a volume of 415.970 million units followed by UBA Plc and Diamond Bank Plc. The top three equities with a total volume of 1.022 billion units of shares contributed 31.37 per cent and 20.38 per cent to the total turnover and value for the week.

    Also traded during the week was 565 units of New Gold Exchange Traded Funds (ETFs) valued at N1.440 billion exchanged hands in four deals in contrast to a total of 413 units valued at N1.1042 million transacted last week in five deals. There were no transactions through the stock market in the FGN Bonds, state/local government bonds and corporate bonds/debentures sectors.

     

     

     

     

  • Enterprise Bank chief advocates discipline, good management

    HIGH moral values, efficient management, service discipline and cultural change in the public and private sectors of the economy are keys for growth, the Chief Executive Officer, Enterprise Bank Limited (EBL), Mallam Ahmed Kuru.

    He spoke at the 28th Omolayole Management Lecture at the Nigerian Institute of International Affairs (NIIA).

    It has as theme “The future of enterprise in the age of collaboration”.

    He said though it takes a lot of hard work and commitment to achieve these virtues collectively and individually, there was no better value the leaders can bequeathe to the younger generation in the country than to leave them with good legacies.

    He said countries that have experienced and are still going through impressive economic, social and political growths, transparent and sincere leadership styles as well as high moral standards are those that realised that low moralism, poor knowledge, bad leadership or management structures, indiscipline and poor service standards, among other vices, are not the bedrock for building a stable and programme economy.

    He added that there was urgent need to positively collaborate with other nations with the view to leveraging their advantages and approaching every endeavour from the perspective of enterprise, which he defined as the ability to think of new project ideas and turn them into successful ventures.

    The Enterprise Bank boss added, “The primary purpose of establishing an enterprise in the first place is to create value through the production of goods or services that satisfy both domestic consumption and export earnings”.

     

  • FBN Capital floats mutual funds

    FBN Capital Limited through its Asset Management arm has inaugurated mutual fund products to enable it to enhance investors more get returns.

    These investment platform enhances financial growth both for individuals, businesses and corporations. The funds.

    The products are FBN Money Market Fund, Fixed Income Fund and Heritage Fund. They have been admitted to the daily official list of the Nigerian Stock Exchange (NSE) after successful initial offerings.

    A total of 17.98 million units of the Money Market Fund were admitted at par value of N100 each while 1.75 million units of the Fixed Income Fund were admitted at N1, 000 par value.

    The Money Market Fund invests in liquid short term instruments while the Fixed Income Fund offers investors opportunity to invest in Nigeria’s sovereign, state and corporate bonds and other long-tenor securities.

    Director, Asset Management, FBN Capital, Michael Oyebola, said the funds are expected to allow small, medium and large scale investors participate in the funds and benefit from the current high returns accruable from the market using the expertise of FBN Capital.

    He said FBN Capital would continue to offer units of the funds to investors, noting that investors can invest in Money Market Fund with as low as N5, 000 while minimum investment in the FBN Fixed Income Fund and the FBN Heritage Fund is N50, 000.

    According to him, the primary objective of the funds is to achieve a high level of income obtainable from investments that is consistent with prudent investment management, the preservation of capital and maintenance of liquidity.

    He pointed out that the high level of professional management is a major determinant of success in the volatile market.

    According to him, investors would benefit from FBN Capital’s cutting-edge investment process, which combines top-down views on the macroeconomic environment with proprietary local bottom-up analysis.