* Stanbic will facilitate trading over the bourse
* Retail investors to participate in bond market
LAGOS Nov 14 Nigeria has appointed a local unit
of South Africa's Standard Bank as stockbroker for its
debt, in a move aimed at expanding participation in government
bond issues to retail investors on the bourse, the debt office
said on Wednesday.
Africa's second-biggest economy issues tens of billions of
naira (hundreds of millions of dollars) in sovereign bonds
each month to support the local bond market, create a
benchmark for corporate issuance and fund its budget deficit.
"We are expanding into the retail market ... for the bonds
and we need a reputable stock broking firm to assist in
secondary marketing," one official at the Debt Management Office
(DMO) told Reuters.
Stanbic would help facilitate the listing of bonds as soon
as they are issued, provide competitive pricing and make a
market for retail clients to get involved, he said.
Although they are listed, Nigeria's bonds are currently
traded by local banks over the counter and mainly sold to
pension funds and foreign portfolio investors. Adding retail
clients would help boost liquidity, the DMO official said.
The inclusion of Nigeria's local debt in the JP Morgan Bond
Index-Emerging Markets (GBI-EM) and a proposal by Barclays last
week to list them in its index have attracted a flurry of
offshore and local interest in the local debt market.
The DMO said last month Nigeria plans to raise between 160
billion naira ($1 billion) and 240 billion naira via sovereign
bonds ranging between 5 and 10 years in the fourth quarter of
($1 = 157.8750 Nigerian nairas)
(Reporting by Oludare Mayowa; Editing by Tim Cocks and Mark