Summary of FGN Bond Auction Results for October 2017

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MSCI announced today its decision to retain the MSCI Nigeria Indexes in the MSCI Frontier Markets Indexes. The market will be removed from the review list for potential reclassification to Standalone status.

MSCI will also no longer apply the special treatment for the MSCI Nigeria Indexes announced on April 29, 2016. More specifically, and as part of the upcoming November 2017 Semi-Annual Index Review , MSCI will implement all index review changes, including changes in the Number of Shares (NOS) and Foreign Inclusion Factors (FIF) that have been postponed since April 29, 2016. These changes will be made for securities classified in Nigeria in the MSCI Nigeria Indexes and in indexes which Nigeria is a component of.  These include the MSCI Factor, Thematic, ESG and other relevant derived indexes. MSCI will also resume the regular implementation of corporate events effective immediately.

Index review changes for the MSCI Nigeria Indexes will be announced together with the November 2017 Semi-Annual Index Review announcement on November 13, 2017.

As a reminder, the MSCI Nigeria Indexes were added to the review list for potential reclassification to Standalone status in September 2016 due to issues in the foreign exchange market leading to impairment in the ability of institutional investors to repatriate capital.

On April 21, 2017, the Central Bank of Nigeria (CBN) announced the establishment of the Investors’ and Exporters’ FX Window which aims to improve liquidity in the foreign exchange (FX) market. Market participants have indicated that since the establishment of this Window, funds can be repatriated at close to the official rate. Concerns on the spreads and delays which investors have earlier experienced have also eased.

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