The Nigerian Exchange Limited (NGX) registered corporate listings and FGN bonds worth N12.17 trillion in 2024.
As the federal government used the capital market to raise money locally in 2024, business listings on the NGX surpassed FGN bonds, according to data gathered by the NGX.
A significant component of the listings were FGN bonds, which were issued by the Debt Management Office (DMO) on behalf of the federal government. FGN bonds valued at an estimated N5.95 trillion were listed on NGX in 2024. Meanwhile, N6.2 trillion was made up of corporate listings, which included corporate bonds and memorandum listings.
The two biggest FGN bond listings in 2024 were 621,382,074 units of 19 percent FGN Feb 2034, valued at N621.38 billion, and 873,527,020 units of 18.50 percent FGN Feb 2031, valued at N873.53 billion.
A supplemental listing of 282,625,193 units of 18.50 percent FGN FEB 2031, priced at N282.63 billion, was also recorded.
As rising inflation continued to erode profits in other capital market investment segments, the number of Pension Fund Administrators (PFAs) participating in the FGN bond market noticeably increased throughout the year.
Corporate Listings: Who Controls Them?
On the business side, Sovereign Trust Insurance Plc began the year by listing N1.43 billion in January from the rights issuance of 2,841,116,504 common shares (one for four) at 50 kobo each. Chapel Hill Denham Management Limited listed N11.58 billion, followed by Ellah Lakes Plc with N2.19 billion.
By listing N1.8 trillion in 7.5 billion common shares at N240.00 a share in March, Transcorp Power Plc significantly increased market liquidity.
Following its rights issuance of 63,342,455 ordinary shares at N197.33 per share on a 1-for-3 basis, VFD Group Plc listed N12.5 billion in April, while Emerging Africa Asset Management Limited listed N5.55 billion. Royal Exchange Plc contributed N1.56 billion to the market in the same month.
Other noteworthy offerings in 2024 included Cadbury Nigeria Plc, which listed shares for N7.04 billion in May, and AVA Global Asset Managers Limited, which launched shares worth N4.08 billion.
Multi-Trex Integrated Foods Plc contributed N2.5 billion to the exchange in June. Tantalisers Plc listed N1.07 billion in July, and Wema Bank Plc raised N39.95 billion.
The contribution from Notore Chemical Industries Plc was N105.79 billion. Japaul Gold Ventures Plc collected N20 billion through a private placement in August, while International Breweries Plc listed N516.22 billion through a rights issue.
Significant listings occurred in October, including the debt-to-equity conversion that raised N822.92 million for C & I Leasing Plc.
Nigerian Breweries Plc raised N548.73 billion through a rights sale, whilst Aradel Holdings Plc had a whopping N3.05 trillion at launch.
FGN Bonds: Why?
Analysts attribute the high demand for FGN Bonds to the bonds’ alluring yields. FGN bonds provided investors with substantial returns on their capital.
According to analysts, the bonds’ strong levels of oversubscription demonstrated trust in the federal government’s capacity to pay down its debt.
