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Stanbic IBTC floats N2bn fixed income funds’ offer

By Michael Eboh
Stanbic IBTC Bank Plc has concluded arrangements to raise N2 billion from the capital market through its two new fixed income funds — the Stanbic IBTC Money Market Fund (SIMM) and the Stanbic IBTC Bond Fund (SIBOND).

To this end, the bank is offering for sale 10 million units of the Stanbic IBTC Money Market Fund at N100 each issued at par and 10 million units of N1 each at N100 per unit of the Stanbic IBTC Bond Fund.

According to a statement by the bank, with the commencement of both offers, the bank has taken a major step towards helping investors build a portfolio of financial instruments and securities to hedge against the current economic slowdown.

It noted that both funds opened, Monday, November 16, 2009, with the offer for the SIMM closing on Friday, November 20, 2009, whilst the SIBOND fund will close on Wednesday, December 23, 2009.The funds manager is Stanbic IBTC Asset Management Limited, PHB Capital & Trust Limited is the trustee to the funds, First Registrars Nigeria Limited is the registrar to the offer while Stanbic IBTC Bank Plc is the issuing house and receiving bank.

The statement quoted Chris Newson, Chief Executive Officer, Stanbic IBTC Bank Plc, as saying that investors will benefit from the growth of these funds because the funds will be invested in instruments that will ensure return on investment.

He said, “Stanbic IBTC’s expertise and experience in Asset/Wealth Management and Corporate and Investment Banking garnered over many years, in addition to Standard Bank’s rich heritage in investment banking, will help in guiding investment decisions thereby ensuring that subscribers derive value from them.”

“The funds will enable individual and corporate investors invest in a diversified portfolio of fixed income securities, with the overall aim being to achieve competitive returns on the assets while safeguarding capital, by investing in a diversified portfolio of high quality bonds of government, supranational and corporate issuers, including Federal Government bonds, State Government bonds, Corporate bonds, Eurobonds and other high yielding fixed income securities.”

He noted that the SIMM will invest in a wide range of very liquid short term money market instruments such as Guaranteed Commercial Papers, Bankers’ Acceptance, Term Deposits and Certificates of Deposit, among others, with financial institutions rated “A” and above in Nigeria.

“Prior to the introduction of the two new Funds, Stanbic IBTC Asset Management Limited already had under its management three Mutual Funds. They are the Stanbic IBTC Nigerian Equity Fund, which is currently Nigeria’s largest mutual fund; the Stanbic IBTC Ethical Fund, Nigeria’s first socially responsible quoted mutual fund, which allows subscribers to make profitable long-term investments without compromising their religious beliefs and or principles.”

and the Stanbic IBTC Guaranteed Investment Fund, a mutual fund that guarantees principal investments after holding the instrument for a minimum of three months.

“The Stanbic IBTC Group has managed funds of behalf of pension schemes, retirement benefit plans and high net worth individuals for close to two decades,” he noted.


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