teflondoncuzo:
Me I don't understand all this bond ish. Can someone plz explain

IstandwithBUhari. 1Nigeria

PassingShot:

Different bodies, individuals and corporate entities can buy bonds from the govt. It doesn't have to be banks alone.

If you take your time to read it up, it's the bond issuer that states the interest rate and for how long the bond will be issued for. Generally, the interest rates for bonds are much lower than conventional loans. Also, the buyer of govt bonds, the lender so to say, does not determine what the bond issuer uses the money for. The reverse could be the case with regular loan.

PassingShot:

Different bodies, individuals and corporate entities can buy bonds from the govt. It doesn't have to be banks alone.

If you take your time to read it up, it's the bond issuer that states the interest rate and for how long the bond will be issued for. Generally, the interest rates for bonds are much lower than conventional loans. Also, the buyer of govt bonds, the lender so to say, does not determine what the bond issuer uses the money for. The reverse could be the case with regular loan.

PassingShot:
This is like putting a dagger through the heart of haters, the wailing zombies who detest good news about Nigeria.

Liepods, how far na?

vodutive:
Economic expert will tell you Nigeria needs $30 - $70B PER ANNUM to address infrastructure deficit and we are celebrating a loan of $1B?

South Africa with a population one quarter of Nigeria's population spent $22 Billion (297 B Rand) on Education last year of which $15.5Billion (205B Rand) was on Basic education alone !!!!

We are not serious people!!!

http://ewn.co.za/2016/02/24/BudgetSpeech2016-More-money-for-education-grants-health

ephi123:


Those differences you are pointing out are all very minor, the key issue here is that money still has to be paid back (no matter how lax or stringent the initial conditions were), there is nothing to celebrate about taking on more debt, it is not free money afterall plus the government will still pay interest on it as it cannot even default unlike with corporate bonds where companies can claim bankruptcy.

unclezuma:


George Orwell's 1984.

...

maskid:


just leave the little boy. "the stridency of his cluelessness has reached the heights of impiety" .. wole soyinka

vodutive:


why are we so dull and lacking in initiative in this country, you have access to the internet so what does it take for you to type "what are bonds" into google?

ephi123:


SPENT On Education. Those are the key words. The money was not looted, it was budgeted and spent on education.

Have you seen the meagre allocation given to Education in the latest budget? And you expect Nigeria to be at par with South Africa? It ain't happening dude.

PassingShot:

Bond is different from borrowing. Help yourself instead of wasting away online.

The main difference from the conventional borrowing is that the bond issuer determines the interest rate and tenor whereas the lender in the case of borrowing dictates the repayment conditions.

UncleSnr:
Please if you understand, kindly explain for us.

Speaking on behalf of those that will shout sai baba, or shame baba. We need to understand before choosing which to shout.

Boss13:
Nothing special. There is no other investment opportunities. Ghana's Eurobond was oversubscribed too. Foreign capital investors are looking for the next piece of action to make money

awa:
Is not about being oversubscribed but what impact or effect would have on the common man along the street after the whole exercise.

Don't believe what any of these APC fools tell you....

Call me Hater and face the wrath of Udeme my friend.

PassingShot:

Bond is different from borrowing. Help yourself instead of wasting away online.

The main difference from the conventional borrowing is that the bond issuer determines the interest rate and tenor whereas the lender in the case of borrowing dictates the repayment conditions.

Tarzaa:
With God, all things are possible. We must surely get there!

Juciano1:
Please don't mislead. Bonds are borrowing instruments. FG is essentially borrowing from external investors.

Jacobx007:

So who is wasting online? Common bond u don't know the meaning

josh123:
Ayam nt understanding anything ,who fit summarize am for me?

ephi123:


Thank goodness there are informed people here.

"bond is different from borrowing..." what won't one see on this Nairaland?

ephi123:
There is no free lunch even in Freetown. Government should stop accumulating debt under different guises, we are saddled with enough unprofitable debts as it is.

teflondoncuzo:
Me I don't understand all this bond ish. Can someone plz explain

IstandwithBUhari. 1Nigeria

PassingShot:

The main difference from the conventional borrowing is that the bond issuer determines the interest rate and tenor whereas the lender in the case of borrowing dictates the repayment conditions.

Truth234:


Oga, it is borrowing and the difference between bond sales and conventional borrowing is actually our disadvantage. For instance, the government is issuing this bond at a premium high (interest rate) to attract investors. While in conventional borrowing interest are way lower (foreign institution) and costs of servicing debt are cheaper but when there is no foreign institution that wants to borrow us due to the current headwings in the country and the downgrading by credit ratings in recent time. The government result to borrowing (bond sale) at a very 'High Cost'. Don't forget this is money we really do not have.

Let me ask you, why are investors rushing the bond giving the level of risk exposure and uncertainty?

Ronaldinnioh:
J

davidif:


hahahahaha, tell them jare.

davidif:


I am guessing govt spending is what is keeping inflation at a high rate in Nigeria. Can you confirm this?

datola:
Wow, this shows Mrs Adeosun is really working to restore investor's confidence in the Nigeria economy.

Haters gonna hate anyway.

vodutive:


why are we so dull and lacking in initiative in this country, you have access to the internet so what does it take for you to type "what are bonds" into google?