Stanbic IBTC Plc CP Offer; Tepid Performance in the T-Bills Market as Average Yield Remains at 12.2%

The Treasury Bills (“T-Bills”) market witnessed a lukewarm performance in the four trading sessions last week, as market players’ appetite for long-term bills in the secondary market waned slightly ahead of the Primary Market Auction (“PMA”) last Thursday. Consequently, average yield on long-term bills in the secondary market closed flat, inching up 8bps W-o-W due to sell-offs especially on the longest maturity available 30-Apr-20 up 47bps W-o-W.

On the flipside, average yields on the medium- and short-term instruments dipped 4bps and 23bps W-o-W respectively with most demand on 13-Jun-19 maturity (-1.6% W-o-W) as investors with unfulfilled long-term demand at the PMA positioned ahead of the next auction.

At the PMA on Thursday, the Apex bank offered N67.4bn worth of T-Bills which was 2.9x oversubscribed with N195.5bn worth of bids. As expected, the stop rates moderated further for the third consecutive PMA auction.

Not surprisingly, most of the bids were long-term thus, the 364-Day instrument was 6.0x oversubscribed. The CBN however allotted only what was initially offered across tenors as detailedintable below:

Auction Date 30-May-19 30-May-19 30-May-19
Allotment Date 30-May-19 30-May-19 30-May-19
Tenor (91-Day) (182-Day) (364-Day)
Offer Amount (N) 24,372,790,000 23,157,656,000 19,842,352,000
Total Subscription (N) 24,447,790,000 51,233,884,000 119,852,500,000
Allotment (N) 24,372,790,000 23,157,656,000 19,842,352,000
Range of Bid Rates (%): 9.5000 – 10.2000 11.4000 – 12.6664 11.7900 – 14.0000
Stop Rates % (02-May-19) 10.00 12.49 12.77
Stop Rates % (16-May-19) 10.00 12.30 12.49
Stop Rates % (30-May-19) 10.00 11.95 12.20
Subscription Ratio 1.0x 2.2x 6.0x
Allotment Ratio 1.0x 0.5x 0.2x
Please see indicative T-Bills rates below:

Maturity Tenor (Days) Rate (%) p.a. Yield (%) p.a.
15-Aug-19 73 9.55 9.74
31-Oct-19 150 10.50 10.97
5-Dec-19 185 10.95 11.59
16-Jan-20 227 11.10 11.92
20-Feb-20 262 11.40 12.42
19-Mar-20 290 11.10 12.17
OMO Auction c.100 10.00 10.28
OMO Auction c.200 11.00 11.71
OMO Auction c.300 11.30 12.46

Rates are valid till 01:45pm today (03-Jun-19)
*Please note that the minimum subscription for T-Bills is N100,000.00

On the back of system liquidity N413.2bn positive as at Friday and barring any Open Market Operations (“OMO”) by the CBN, we expect the first trading week in June to be characterised by increased buying interest especially in long-term secondary market bills that marginally advanced last week.

However, towards the end of the short week (due to the 2-day Eid al-Fitr break), N177.1bn worth of maturing OMO instruments is scheduled to hit the financial system on Thursday which we anticipate will be completely mopped up by an OMO auction. We advise investors to take position in the expected OMO offering and stay alert for attractive medium to long-term bills available in the secondary market.

Stanbic IBTC Bank Plc Commercial Paper Offer

Please be informed that Stanbic IBTC Bank Plc is seeking to raise up to ₦35.0bn in the 48th, 49th and 50th series of its ₦100.0bn Commercial Paper (“CP”) Programme to support its short term funding requirements.

Please see below the details of the offer:

Stanbic IBTC Bank PLC
Series Number Series 48 Series 49 Series 50
Tenor 90 days 180 days 270 days
Effective Yield 11.9840% 12.6532% 14.0000%
Discount Rate 11.6400% 11.9100% 12.6862%
Issuer Rating “AAA” (Fitch); “AA-” (GCR) “AAA” (Fitch); “AA-” (GCR) “AAA” (Fitch); “AA-” (GCR)
Minimum Subscription Minimum of ₦5.0m and multiples of ₦1,000 thereafter Minimum of ₦5.0m and multiples of ₦1,000 thereafter Minimum of ₦5.0m and multiples of ₦1,000 thereafter
Offer Open Date Friday, May 31st, 2019 Friday, May 31st, 2019 Friday, May 31st, 2019
Offer Close Date Thursday, June 6th, 2019 Thursday, June 6th, 2019 Thursday, June 6th, 2019
Allotment Date Thursday, June 6th, 2019 Thursday, June 6th, 2019 Thursday, June 6th, 2019
Issue Date Friday, June 7th, 2019 Friday, June 7th, 2019 Friday, June 7th, 2019

Kindly indicate interest before 09:00am on Thursday (06-Jun-19)
* Please note that this offer is free of withholding tax
*Please note that the minimum subscription for CP is N5,000,000.00

FGN Bonds Market Update: Average Yield Dips 7bps W-o-W to Sustain Warm Bullish Performance in the FGN Bonds Market

Performance in the secondary bonds market maintained a quietly bullish performance throughout the month of May with most demand witnessed on short-term bonds especially benchmark bond Jul-2021 bond down 53bps W-o-W.

We expect market players to continue to favour short-term bonds especially as the CBN continues to moderate secondary market long-term T-Bills rates.

Please see indicative FGN bond rates below:

Bond Tenor (Years) Yield (%) Coupon (%) Implied Price (N)
Jul-21 2 13.90 14.50 101.03
Jan-22 3 13.85 16.39 105.42
Apr-23 4 14.00 12.75 96.31
Mar-24 5 13.85 14.20 101.14
Mar-25 6 14.00 13.53 98.12
Jan-26 7 14.16 12.50 92.96
Mar-27 8 14.16 16.29 109.78
Feb-28 9 14.19 13.98 98.91
Jul-34 15 14.26 12.15 87.00
Mar-36 17 14.25 12.40 88.25
Apr-37 18 14.20 16.25 113.14

Rates are valid till 01:45pm today (03-Jun-19)

*Please note that the minimum subscription for Bonds is N20,000,000.00

To invest in FGN Bonds or T-Bills, send an email to –


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