The Nigerian Exchange Limited (NGX) debt market provides access to a range of fixed income securities from local and international issuers. Through its vast network of Trading License Holder Firms and an integrated trading platform, NGX provides institutional and retail investors access to one of the most liquid bond markets in Sub-Saharan Africa.
Bonds are fixed income instruments issued by entities to raise funds. The issuer of a bond presents the bond as a promise to make available regular, fixed, income payments to the investor or the buyer of the bond who is also the bondholder. These income payments are known as coupons and bonds which pay coupons twice a year are known as semi-annual coupon bonds. There are also bonds that make coupon payments annually, known as annual coupon bonds. Bonds which make no coupon payments are called zero coupon bonds, or deep discount bonds. In making a decision to buy a bond, investors should consider a number of factors such as the tenure of the bond, the coupon payments expressed as a single percentage rate, and the yield-to-maturity or just simply, yield.
The Nigerian Exchange (NGX) hosts and lists different fixed income instruments on its platform which include:
You can now buy and sell bonds through your stockbroker just like shares.