₦airaland Forum

jabolo:
I presume you are applying for credit.

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skydiver01:
The income tax is now applicable to income from bonds held by corporates and not those held by individuals. Furthermore, capital gains tax (CGT) is applicable to equity sales by both individuals & corporates

https://pwcnigeria.typepad.com/tax_matters_nigeria/2022/01/taxing-times-you-may-be-liable-to-tax-on-your-previously-exempted-investment-income-effective-from-t.html?utm_campaign=5a78693e94a32673ae004919&utm_content=61d1d17515103c00015f1f64&utm_medium=smarpshare&utm_source=twitter

jabolo:
Most likely a mistake IMO. You should not be expecting coupon payments after the bond has been redeemed.

Congratulations on your bond learning journey. You are very determined and the knowledge will pay off in the end.

freeman67:
This is the correct one. Bond coupon payment is bi-annual ie paid twice yearly. So the total amount of the rate is divided by two and paid at 6 months interval. Your last coupon will come with your principal. Depending on when the bond commenced, that could be in either in February or August 2028.

unite4real:
What i will say is congratulations because you on course to understanding how the secondary BOND market plays out. As you probe further and in your future purchases, you begin to understand some things like
buying at par
buying at premium
buying at discount
clean price
dirty price
coupon rate
Yield
also when you buy bond close to the next coupon payment date and a little bit away from last coupon payment date, how this affect the price you pay in relation to the number of years left to the life of the bond.

my one cent advice to buyers on bond is to keep an eye on the yield. If you see a bond coupon rate at 16% and another one at 13% both in the secondary market. You cannot say the 16% is better than the 13%. Experience will show you to keep an eye on the yield. The 13% could end up being a better deal.

Only in the primary market or a new bond issue you can tell outright from the coupon rate which is better.

make i stop here

Oga emmanuelewumi has explained everything to you but from my early years of experience, i know it will be a bit confusing but as time goes on and you continue investing in the secondary market, it will become clearer

emmanuelewumi:
You will earn N170,000 for 6 years, which is about N1.3 million


You spent N1.43 million to buy the investment

emmanuelewumi:
You bought at a premium.

What is your annual coupon? What is the duration of the investment? You add up all these to determine your returns

skydiver01:
Principal repayment (face value) in Feb 2028 is ~N1,221,621.019 and total interest earned over 6 years is ~N1,024,695.71 + accrued interest since August 2021 of ~N85,391.31 which will be paid next month.

emmanuelewumi:
Yield of 11.8%.

13.98 divided by 118 times 100

skydiver01:
The info you require is in the table below to 31 December 2021.

emmanuelewumi:
Get the coupon for the bonds, so that you can calculate the yield

emmanuelewumi:
Get the coupon for the bonds, so that you can calculate the yield

emmanuelewumi:
Send a mail to your relationship manager.

emmanuelewumi:
What you got from the mail is what is available with the Stockbroker.

What I shared is what is available with the bank

emmanuelewumi:
About 13%, provided it is available

emmanuelewumi:
About 13%, provided it is available

emmanuelewumi:
You can buy from the bank or from the Stockbroker.

emmanuelewumi:
This is from the bank, the Stockbroker might not have it

emmanuelewumi:
From the table I shared the coupon is 13.8%.
At N118 you will have a yield of about 11.7%

emmanuelewumi:
These are the secondary market rates for today

emmanuelewumi:
Can't believe people are still buying 365 days Treasury Bill at 5%.

Afrinvest packaged a commercial paper for a major player in commodity trading at 16% per annum

emmanuelewumi:
Send a mail to the customer service and copy your relationship officer.

They accept FGN bonds as collateral

emmanuelewumi:
Same here as i don't have a salary account.



If you have mutual funds eg Money Market Fund, Fixed income Fund and Eurobond Fund with United Capital, you get 90% of your investment portfolio value as loans. The interest is 16%.


If you have shares, bonds, dollar fund, Fixed income Fund, Money Market Fund with FSDH Capital and FSDH Asset Management your can get 50% of your investment portfolio value as loans. The interest is 22%. Can be negotiated lower if you are asking for N50 million and more

If you have shares, bonds, mutual funds with Investment One, you can get loan from their subsidiary Orange One Finance at 26%.

These loans have flexible repayment plans usually quarterly, semi annual, but maximum duration is 12 months.


If you have Investments with Stanbic IBTC Asset Management, Stanbic IBTC Bank can give you overdraft facility that is up to 80% the value of your investment portfolio. The interest rate is 24%

emmanuelewumi:
Even this 12.8% Sukuk, I used my fund and also got a loan at 22% to add to my fund and Invest in Sukuk 4

Some might think that was stupid. The loan is a 6 months loan, although I will be able to liquidate it by April 2022 because dividends and coupons are expected to be paid between February and March.

At 22% per annum, interest to be paid in 4 months is about 7.3% and I will earn 12.8% for the next 10 years

emmanuelewumi:
Doubt if it will work since you don't have a contact at the issuing house ie Stanbic IBTC Capital.


I will advise you to buy in the secondary market if you are still interested

freeman67:
Or if you intend to be doing that volume of transactions from your comfort zone. You can increase your limit. The maximum you can increase to for the app and internet access is 5M.

emmanuelewumi:
Banks and Stockbrokers are expected to sent the money realized to the issuing house that is Stanbic IBTC Capital on or before close of business today.

I bought directly from the issuing house that is (Stanbic IBTC Capital) reason why I said if you can make payment before 12 noon today to the issuing house account it will fly, before allotment and compilation are done over the weekend