Lagos - Mr Oscar Onyema, the Chief Executive of Nigerian Stock Exchange (NSE), on Tuesday said market capitalisation of bonds on the Exchange stood at N5.82 trillion in 2012.
Onyema disclosed this at the NSE’s Retail Bonds Trading and Fixed Income Market Making Practicum in Lagos.
He said that the figure represented an increase of 55.6 per cent over the N3.74 trillion recorded in 2011.
According to him, the revival of the Federal Government bonds has spurred state governments’ participation in the bond market for funding of capital projects.
The NSE chief executive said that "the figure is likely to grow further in the years ahead because of the nation's need for infrastructural development."
He said that the International Finance Corporation (IFC), an investment arm of the World Bank, had also announced plans to issue a bond on the NSE.
Onyema said that the bond would be the first foreign bond to be issued on the NSE.
He said that the retail bond market was being set up to complement the structure of the Over-the-Counter (OTC) bond trading and to increase retail participation in bond investment.
On the retail bond market scheduled to be launched on Feb. 1, he said that the practicum was organised to acquaint stakeholders on the structure and processes.
Mr Dipo Omotoso, the Head, Product Management of NSE, said that the practicum would facilitate trading on listed debt instruments issued by the Federal and State Governments as well as corporations.
Omotoso said that it would offer a more transparent pattern for bond trading and enhanced efficient price discovery.
He said that it would also deepen the market and ensure enhanced portfolio diversification and management.
The News Agency of Nigeria (NAN) recalled that the Exchange, had on Jan. 15, unveiled six market makers for bond trading.
The market markers are Capital Bancorp, DunnLoren Merrifield, Greenwich Securities, Cordros Securities, FSDH Securities, and Investment One Financial Services Ltd.