New debt issuance and fund expansion signal rising investor appetite for fixed income assets amid shifting market conditions…..
The Nigerian Exchange Limited (NGX) has strengthened its fixed income market with the listing of a fresh N10 billion commercial paper issuance by NGN Gram Limited, alongside additional units of Chapel Hill Denham’s Nigeria Infrastructure Development Fund (NIDF).
The dual listing, which took effect on March 17, 2026, was disclosed in the Exchange’s latest weekly market report, highlighting continued efforts to broaden investment opportunities and deepen market liquidity.
Strong Demand for Longer-Term Instruments
The NGN Gram issuance, structured under its N10 billion programme, was split into three tranches Series 1, Tranches A, B, and C valued at N809.3 million, N472.4 million, and N8.72 billion respectively.
Investor preference leaned heavily toward longer-dated instruments, with the 364-day Tranche C accounting for more than 85 percent of the total issuance. This segment was priced at 80.36 percent of par, translating to an implied yield of 24.5 percent.
Shorter-tenor tranches also attracted interest, though at comparatively lower returns. The 270-day Tranche B offered a yield of 23.0 percent, while the 182-day Tranche A came in at 21.5 percent. Across the board, discount rates remained within a relatively narrow band, indicating disciplined pricing despite varying maturities.
The transaction was arranged by Comercio Partners Capital Limited, with Fidelity Bank Plc serving as the paying agent, underscoring the critical role of financial intermediaries in facilitating corporate fundraising in Nigeria’s debt market.
Why Investors Are Paying Attention
Commercial papers typically issued at a discount and redeemed at full value continue to appeal to institutional investors seeking predictable returns in a high-yield environment.
The dominance of the 364-day tranche suggests growing confidence among investors in locking in elevated yields, particularly amid expectations that interest rates could moderate in the future.
This shift reflects broader market positioning, as both issuers and investors adapt to tightening liquidity conditions and evolving monetary policy signals.
Infrastructure Fund Gets a Boost
Alongside the commercial paper listing, NGX also admitted 296,464 additional units of Chapel Hill Denham’s NIDF following its fourth-quarter 2025 scrip dividend issuance.
This move increased the fund’s total outstanding units marginally, signaling continued reinvestment by existing investors. Scrip dividends where returns are paid in additional units instead of cash allow fund managers to conserve liquidity while simultaneously deepening market participation.
A Growing Fixed Income Market
The latest listings mark another milestone in NGX’s strategy to expand its non-equity offerings and enhance activity within the fixed income segment.
It also represents the second commercial paper admission on the Exchange in recent times, reinforcing the growing role of short-term debt instruments as corporates seek alternatives to expensive bank borrowing.
With improved transparency, better price discovery, and increased liquidity, such listings are gradually reshaping Nigeria’s capital markets making them more attractive to both local and institutional investors.
As market sophistication deepens, instruments like commercial papers and infrastructure funds are expected to play an even bigger role in financing business operations and long-term development projects across the country.
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