Friday, April 18, 2014

Debt Office appoints Stanbic IBTC as FGN bond managers

Published:

Stanbic IBTC becomes the Federal government bond mangers.

Stanbic IBTC Stockbrokers Limited has been appointed the official government stockbrokers, the Debt Management Office, announced on Tuesday.

The Director General of the Debt Office, Abraham Nwankwo, who announced the appointment, said the engagement empowers Stanbic IBTC to provide prices for FGN (Federal Government of Nigeria) bonds on the floor of the Nigeria Stock Exchange, NSE, to enable retail investors, in particular, to buy or sell the bonds.

Mr. Nwankwo said the appointment permits the broker to act as a liaison between the Debt Office, NSE, other stockbrokers, and other market participants to ensure that all activities in FGN bonds and other FGN securities that may be listed in future are smoothly effected.

“Investors can now access FGN bonds on the NSE, the investing public can now diversify their portfolio further by introducing bonds, it will provide an opportunity for investors to earn regular income on their investments through coupons paid on FGN bonds and it will be an additional and assured means through which investors can sell their FGN bonds before maturity,” he said.

Mr. Nwankwo said that further stimulus would be introduced for the bond segment, as well as higher volume of transaction, which would benefit the capital market.

He expressed optimism that the newly appointed government stockbroker will bring about an improved savings culture by providing access to high quality investment for a wider segment of the population; and gives the retail investor the opportunity to contribute to government’s development activities including infrastructure, education and health.

The Chief Executive Officer, Stanbic IBTC Bank, Sola Borha, expressed confidence that the investing public would be properly enlightened on the bond market through the partnership with the Debt Office, adding that the Nigerian capital market was much developed to contain occasional shocks.

Mr. Nwankwo also disclosed the agency’s internal arrangement to support victims of the recent floods which had ravaged parts of the country, pointing out that every staff of the office had pledged a minimum of five per cent of their November pay to assist affected victims across the country.

He urged other well-meaning Nigerians to support the gesture to boost government’s efforts to demonstrate love and support to fellow countrymen and women in such a difficult time.

Mr. Nwankwo said that a country’s growth does not rely totally on Gross Domestic Product, GDP, but includes demonstration of love to each other and those in distress.

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