Nigerian Exchange Limited (NGX) recorded about N12.17 trillion worth both FGN bond and Corporates listings in 2024.
Data obtained from the Exchange revealed that corporate listings outpaced FGN Bonds on the NGX in 2024, as the Federal Government leveraged the capital market to raise funds locally.
FGN Bonds, issued by the Debt Management Office (DMO) on behalf of the Federal Government, were a key part of the listings. In 2024, an estimated N5.95 trillion worth of FGN Bonds was listed on NGX. Meanwhile, corporate listings, including corporate bonds and memorandum listings, accounted for N6.2 trillion.
The largest FGN Bond listings in 2024 included 873,527,020 units of 18.50 percent FGN FEB 2031, valued at N873.53 billion, and 621,382,074 units of 19 percent FGN FEB 2034, worth N621.38 billion. Additionally, a supplementary listing of 282,625,193 units of 18.50 percent FGN FEB 2031 was recorded, valued at N282.63 billion.
Increased participation in the FGN Bond market by Pension Fund Administrators (PFAs) was evident during the year, as high inflation continued to erode returns in other investment segments of the capital market.
On the corporate side, Sovereign Trust Insurance Plc opened the year with a January listing of N1.43 billion from its Rights Issue of 2,841,116,504 ordinary shares at 50 Kobo per share on a 1-for-4 basis. Ellah Lakes Plc followed with a N2.19 billion listing, while Chapel Hill Denham Management Limited listed N11.58 billion.
In March, Transcorp Power Plc made a significant impact with a listing of N1.8 trillion through 7.5 billion ordinary shares at N240.00 per share, boosting market liquidity.
April saw Emerging Africa Asset Management Limited list N5.55 billion, while VFD Group Plc listed N12.5 billion following its Rights Issue of 63,342,455 ordinary shares at N197.33 per share on a 1-for-3 basis. Royal Exchange Plc added N1.56 billion to the market in the same month.
Read also: NGX closes 2024 with 38% investment return
Other notable listings in 2024 included AVA Global Asset Managers Limited, which listed N4.08 billion, and Cadbury Nigeria Plc, with a listing of N7.04 billion in May. In June, Multi-Trex Integrated Foods Plc added N2.5 billion to the Exchange. July saw Tantalizers Plc list N1.07 billion, Wema Bank Plc list N39.95 billion, and Notore Chemical Industries Plc contribute N105.79 billion. In August, International Breweries Plc listed N516.22 billion via a Rights Issue, while Japaul Gold Ventures Plc raised N20 billion through a private placement. October featured significant listings, including C & I Leasing Plc with N822.92 million via debt-to-equity conversion, Aradel Holdings Plc with a massive N3.05 trillion by introduction, and Nigerian Breweries Plc, which listed N548.73 billion through a Rights Issue.
Analysts attributed the strong demand for FGN Bonds to attractive yields, which offered investors high returns on their investments. They noted that the oversubscription levels highlighted confidence in the Federal Government’s ability to meet its debt obligations.
The appetite for FGN Bonds reflects a preference among PFAs and other investors for low-volatility instruments that guarantee capital returns, even with relatively lower yields.
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