NGX Breaks Records with N12.2 Trillion Raised from Bonds & Listings in 2024!
The Nigerian Exchange Limited (NGX) marked a significant milestone in 2024, recording a total of N12.17 trillion from Federal Government of Nigeria (FGN) bonds and corporate listings. Here’s a detailed breakdown:
FGN Bonds: A Key Driver
FGN bonds, managed by the Debt Management Office (DMO), accounted for N5.95 trillion of the listings. These bonds were highly attractive due to competitive yields and investor confidence in the government’s debt obligations.
• Notable FGN Bond Listings:
• 873.53 billion worth of 18.50% FGN Feb 2031 bonds (873,527,020 units).
• 621.38 billion from 19% FGN Feb 2034 bonds (621,382,074 units).
• Supplementary listings added another N282.63 billion.
Corporate Listings Dominate
Corporate listings slightly edged out FGN bonds, totaling N6.2 trillion. This included corporate bonds, rights issues, and private placements from notable companies.
• Top Corporate Listings:
• Transcorp Power Plc: A landmark N1.8 trillion listing via 7.5 billion shares.
• Aradel Holdings Plc: Introduced a massive N3.05 trillion to the market.
• International Breweries Plc: N516.22 billion raised through a rights issue.
• Wema Bank Plc: Added N39.95 billion.
• Japaul Gold Ventures Plc: Secured N20 billion via private placement.
Why the Surge in FGN Bonds?
Analysts attribute the increased appetite for FGN bonds to:
• High yields ensuring attractive returns.
• Low-volatility instruments, favored by Pension Fund Administrators (PFAs) amid inflationary pressures.
The Broader Picture
This unprecedented haul reflects the NGX’s pivotal role in Nigeria’s financial ecosystem, facilitating capital formation for both government and private sectors. It also underscores the confidence of investors in the Nigerian economy despite prevailing challenges.
This performance sets a strong foundation for 2025, with expectations of sustained growth in capital market activity.
The Nigerian Exchange Limited (NGX) marked a significant milestone in 2024, recording a total of N12.17 trillion from Federal Government of Nigeria (FGN) bonds and corporate listings. Here’s a detailed breakdown:
FGN Bonds: A Key Driver
FGN bonds, managed by the Debt Management Office (DMO), accounted for N5.95 trillion of the listings. These bonds were highly attractive due to competitive yields and investor confidence in the government’s debt obligations.
• Notable FGN Bond Listings:
• 873.53 billion worth of 18.50% FGN Feb 2031 bonds (873,527,020 units).
• 621.38 billion from 19% FGN Feb 2034 bonds (621,382,074 units).
• Supplementary listings added another N282.63 billion.
Corporate Listings Dominate
Corporate listings slightly edged out FGN bonds, totaling N6.2 trillion. This included corporate bonds, rights issues, and private placements from notable companies.
• Top Corporate Listings:
• Transcorp Power Plc: A landmark N1.8 trillion listing via 7.5 billion shares.
• Aradel Holdings Plc: Introduced a massive N3.05 trillion to the market.
• International Breweries Plc: N516.22 billion raised through a rights issue.
• Wema Bank Plc: Added N39.95 billion.
• Japaul Gold Ventures Plc: Secured N20 billion via private placement.
Why the Surge in FGN Bonds?
Analysts attribute the increased appetite for FGN bonds to:
• High yields ensuring attractive returns.
• Low-volatility instruments, favored by Pension Fund Administrators (PFAs) amid inflationary pressures.
The Broader Picture
This unprecedented haul reflects the NGX’s pivotal role in Nigeria’s financial ecosystem, facilitating capital formation for both government and private sectors. It also underscores the confidence of investors in the Nigerian economy despite prevailing challenges.
This performance sets a strong foundation for 2025, with expectations of sustained growth in capital market activity.