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Proposal To Act As a

Stockbroker To

HON SALAM BAMIDELE

Investment Management, Financial Advisory and Securities Trading Services Nov. 2021
 Confidentiality Requirement
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 This Proposal has been prepared for the purpose of providing relevant information concerning the
investment solutions that Nigerian International Securities Ltd (“NISL”) will be providing to you.

 The proposal is classified into 4 segments:

a. NISL’s value proposition.
b. What NISL Offers.
c. The Investment Management Services on offer at NISL.
d. Money Market Instruments.

 By receipt of the attached material, the Recipient agrees that the information contained herein will
be kept confidential and shall not, without the prior consent of NISL be disclosed by the Recipient
in whole or in part.

 Nigerian Int’l Securities Limited makes no representation or warranty, express or implied nor is
any responsibility of any kind accepted with respect to the completeness or accuracy of any
information contained in this Proposal. No representation or warranty express or implied is made
that such information remains unchanged in any respect as of the date or dates after those stated
herein with respect to the contents of this Proposal.

Investment Management, Financial Advisory and Securities Trading Services

 Contents
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I. About Nigerian Int’l Securities Limited 4

II. NISL Value Proposition 6
III. What NISL Offers 9
Exceptional Securities Trading Services 10
Investment Management Service 15
Standard Stockbroking Service 17
IV. Fixed Income Securities 19
Treasury Bills 20
Bonds 21
V. NVL High Yield Fixed Income Product (NVL HYFIP) 25
VI. Why choose NISL? 28

Investment Management, Financial Advisory and Securities Trading Services

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I. About

Investment Management, Financial Advisory and Securities Trading Services

 Corporate Identity
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 NISL was incorporated in 1979 and was issued a Stock broking licence
in 1980 by the Nigerian Stock Exchange (“NSE”).
 NISL was formerly a subsidiary of the defunct Continental Merchant
Bank.
 NISL is registered by Nigeria’s Securities & Exchange Commission
(“SEC”) as a Broker/Dealer and Corporate Investment Adviser.
 NISL is a participating Institution of the NASD OTC Securities
Exchange and a Dealing Member (Specialist) of the FMDQ OTC
Securities Exchange.
 NISL is an NSE Alternative Securities Market (ASeM) Designated
Adviser.
 In 2008, the Ownership and Management of NISL changed; the
Company was recapitalised, reorganised and refocused.
Investment Management, Financial Advisory and Securities Trading Services
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II. NISL Value Proposition

Investment Management, Financial Advisory and Securities Trading Services

NISL Value Proposition: Specific Deliverables
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As value-oriented Investment Managers, we seek to achieve an

appreciable long-term return-on-investment while ensuring that
individual goals of our varied clientele are not jeopardized.

We apply professional care and diligence for the safety of

funds/portfolios placed under our management.

We carry out effective portfolio construction to suit the

requirements/risk profile of our client.

We effectively and efficiently manage our clients’

fund/investments to achieve rewarding returns.

Investment Management, Financial Advisory and Securities Trading Services

 NISL Value Proposition: Objectives
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 To achieve the objectives of the Investment our Policy will

focus on the following:

Security of assets
Achieving competitive returns
Maintaining liquidity
Achieving diversification

 NISL will ensure that an adequate balance is struck between

delivering competitive returns, liquidity, security of assets and
sufficient diversification.

Investment Management, Financial Advisory and Securities Trading Services

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III. What NISL Offers

Investment Management, Financial Advisory and Securities Trading Services

 Exceptional Securities Trading Services
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 As stockbrokers, NISL will be willing to place its experience and

expertise in trading in the following classes of securities;
I. Bonds
II. Quoted Equities
III. Unquoted Equities
 We have considerable experience in handling large and significant stock
broking and bonds trading transactions in a timely and efficient manner.
 NISL has the capacity to transact wholesale deals as required by pension
fund managers and institutional investors, sourcing and disposing of
block shares and bonds at competitive rates, whilst ensuring that the
market is not sensitised in order to prevent avoidable “artificial” price
movements. This is possible due to our extensive network in the market.

Investment Management, Financial Advisory and Securities Trading Services

 Exceptional Securities Trading Services
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 NISL can execute equity transactions on your behalf based on mandates received
in the agreed manner. This will be done in your best interest and in the most
transparent manner. Contract notes/transaction advices will be sent to clients and
custodians latest 1 hour after each trading session on The Floor of the NSE.
 In 2020 NISL was among the Top 20 by Value amongst brokers trading on
the NSE
 NISL has, amongst its over 3,500 strong clientele, High Net-worth Individuals
and an impressive and growing list of Nigeria’s major institutional investors such
as Stanbic IBTC Pensions Ltd (with Funds under Management in excess of
₦2.7Trillion; US$7.5Billion), Premium Pensions Limited (with Funds under
Management of ₦1.3Trillion; US$3.6Billion) FSDH Asset Management Ltd,
Capitalfield Asset Management Company Limited, Comercio Partners and some
offshore fund managers e.g. Silk Invest (with Funds under Management in
excess of $200million) who have benefited from NISL’s knowledge and
securities dealing expertise.

Investment Management, Financial Advisory and Securities Trading Services

 Exceptional Securities Trading Services
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 We are building an excellent track record with the Nigerian

investing public in order to continuously enjoy repeat business
from our clients.
“We do not just execute transactions, we build relationships.”

 Our robust cloud-based software NISL ProTrader gives our

clients the option to trade directly on the NSE real time from
anywhere in the world if they desire.

 Daily electronic advices on trades executed are guaranteed. This

would go a long way in facilitating faster information processing

Investment Management, Financial Advisory and Securities Trading Services

 Exceptional Securities Trading Services
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Also, NISL continuously trades in bonds with a growing network of

institutional investors including;

Access bank Ltd

Premium Pensions Limited
Capitalfield Asset Management Company Limited
Skye Financial Services Limited
Stanbic IBTC Asset Management Company Limited
FBN Capital Limited

NISL has built a significant network with most of the primary market
dealers in the country. This enhances its trading efficiency.

Investment Management, Financial Advisory and Securities Trading Services

 Competitive Fees
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Competitive Fees
NISL Management Fees will be based on the Net Asset Value of
the portfolio and the Incentive Fees will be based on the
benchmark rate as follows:

Quarterly Investment Management Fees

0.375% of closing Net Asset Value
Quarterly Incentive Fees
20% of excess above benchmark (MPR plus 2%)

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IV. Fixed Income Securities

Investment Management, Financial Advisory and Securities Trading Services

 Fixed Income Securities
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a) TREASURY BILLS
Overview
This is a segment of the financial market in which financial instruments with high liquidity and very short
maturities are traded. The minimum investment is any amount more than ₦50m. However, NISL offers an
“investors’ pool” structure which allows investors to invest a minimum of ₦5m. The brokerage charge to
invest in this pool is 0.50% on the face value.

Treasury Bills investment are regarded as the safest and most secure short-term money market instrument
because investors are essentially lending money to the Federal Government of Nigeria.
I.Primary Market: This is the issuers market where the short-term debt obligations are sold directly by the
Government. The maximum issue tenor is one year. An auction is held twice a month where successful
bidders can invest directly. The marginal rate results of the last auction on 27-Oct-2021 are:

91 Days 182 Days 364 Days

2.50% 3.50% 6.99%
II. Secondary Market: The investors market where primary buyers get to resell to other investors.
 T-Bills Closing Rates as at 8-Nov-2021
91 Days 182 Days 364 Days
*All rates are Per Annum
4.20% 4.80% 6.9%

Investment Management, Financial Advisory and Securities Trading Services

 Fixed Income Securities
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b) BONDS
Overview
These are debt securities where investors essentially lend money to an issuer (e.g. a corporation or
government) in exchange for coupon (interest) payments (mostly paid every 6 months) and future
repayment of the bond’s face value.
I.FGN Savings Bond: The FGN savings bond is a bond issued by the Debt Management Office (DMO) on
behalf of the Nigerian government. The bond is tailored and targeted at retail investors and includes a
guaranteed quarterly interest payment and repayment of the principal at maturity. The bonds have a tenors
of two (2) and three (3) years respectively and the range of investment fund required to buy into it is
₦5,000 to ₦50,000,000. Coupons for the November-2021 PMA are 7.376% (2-Yr Tenor) and 8.376% (3-
Yr Tenor).
N.B: Though there is ample availability for the purchase of the FGNSB at the primary market, the
secondary market for this bond is not liquid as most buyers tend to hold to maturity.
The table below shows the yield
Description Termon some current Coupon
to Maturity FGN Savings
Rate BondPriceas at(₦)
31-Mar-20.
Yield (%)
(Years) (%) PA

FGNSB 12-Dec-2021 0.09 13.402 100.92 3.50

FGNSB 19-Jun-2022 0.61 12.418 103.91 5.87
FGNSB 11-Dec-2022 1.09 10.091 102.85 7.34

Investment Management, Financial Advisory and Securities Trading Services

 Fixed Income Securities
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Description Term to Maturity Coupon Rate Price (₦) Yield (%)

(Years) (%) PA
16.39 27-JAN-2022 0.22 16.39 102.65 3.93
16.29 17-MAR-2027 5.35 16.2884 118.47 11.56
15.00 28-NOV-2028 7.06 15.00 115.66 11.68
16.25 18-APR-2037 15.44 16.2499 122.29 12.89
14.80 26-APR-2049 27.64 14.8000 113.93 12.94
12.98 27-MAR-2050 28.38 12.98 99.15 13.09

Investment Management, Financial Advisory and Securities Trading Services

 Fixed Income Securities
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III. FGN Eurobonds: These are dollar denominated bonds primarily issued by the FGN at offshore
markets to foreign and local institutional investors to raise funds to meet specific needs such as
financing a budget deficit. Like the normal FGN Bonds, it is backed by the full faith of the FGN and
the Primary Market Auction is not done often. Also, the minimum amount for investing through the
secondary market ranges from $200,000 to $250,000 per tranche.
N.B: Just as the FGN Bonds, when the FGN Eurobonds are disposed off before the maturity date, the
value will depend on the prevailing interest rate in the market. As such, the principal is not guaranteed,
and loss of capital may occur. However, where the investor holds to maturity, the principal is
guaranteed.
The table below shows the yield on some current FGN Eurobonds as at 08-November-2021.
Sovereign Maturity Coupon Fitch Moody’s S&P Price ($) Yield (%)
(%) Rating Rating Rating
REPUBLIC OF NIGERIA 27-Jun-22 5.625 B+ B1 B 101.41 3.34
REPUBLIC OF NIGERIA 12-Jul-23 6.375 BB- BB- 103.72 4.05
REPUBLIC OF NIGERIA 21-Nov-25 7.625 B+ B2 B 108.64 5.22
REPUBLIC OF NIGERIA 23-Feb-30 7.143 B+ B2 B 101.17 6.95
REPUBLIC OF NIGERIA 23-Feb-38 7.696 B+ B2 B 97.24 8.00
REPUBLIC OF NIGERIA 28-Nov-47 7.625 B+ B2 B 94.66 8.12

Investment Management, Financial Advisory and Securities Trading Services

 Fixed Income Securities
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IV. Corporate Eurobonds: A corporate bond is a bond issued by a corporation in order to raise financing
for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is
usually applied to longer-term debt instruments, with maturity of at least one year.
N.B: Currently in Nigeria there are Euro bonds and naira bonds issued by different firms, mostly banks.
The table below shows the yield on some current Corporate Eurobonds as at 08-November-2021.

Corporate Maturity Coupon Fitch Moody’s S&P Price Yield

(%) Rating Rating Rating ($) (%)
SEPLAT PETROLEUM 1/4/2026 7.75 B- - B- 103.01 6.741
DEV. CO.
UNITED BANK FOR 8/6/2022 7.75 B - B 102.15 3.24
AFRICA
ZENITH BANK PLC 30/5/2022 7.375 B+ - B 102.79 2.29
ACCESS BANK PLC 19/10/2021 10.50 B - B 100.52 5.99

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V. NVL High Yield Fixed Income Product

(NVL HYFIP)

Investment Management, Financial Advisory and Securities Trading Services

 NVL High Yield Fixed Income Product
(NVL HYFIP)
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 Here, NISL Ventures Ltd which is the “Alternative Asset Class” investment
sister-company of NISL, provides a vehicle whereby investors can pool
resources together through the NVL High Yield Fixed Income Product (NVL
HYFIP). This is a product aimed at delivering higher returns (compared to that
obtainable from Banks or Government Securities) to investors without a
corresponding increase in risk.
 Advantages:
 The product guarantees the principal and interest agreed on with the investor.
 The yield is much higher than what is obtainable in the Banks (without a
corresponding increase in risk).
 The duration can easily be structured to enable you plan for future cash outflows.
 Disadvantages:
 The risk is slightly higher than that associated with a traditional bank deposit.
However, this is compensated for by a considerable higher yield on the investment.

Investment Management, Financial Advisory and Securities Trading Services

 NVL High Yield Fixed Income Product
(NVL HYFIP)
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 Minimum Investment: ₦2,000,000.00
 Interest Payment: Fixed & Payable “Back End/Front End”
 Principal: Guaranteed

TENOR RATES (Back End) RATES (Front End)

(DAYS)
31-60 4.50% per annum NIL
61-90 7.000% per annum 4.50% per annum
91-120 9.00% per annum 6.50% per annum
121-180 10.50% per annum 8.00% per annum
181-270 12.00% per annum 9.50% per annum
271-330 13.50% per annum 11.00% per annum
365 15.50% per annum 13.00% per annum

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VI. Why Choose NISL?

Investment Management, Financial Advisory and Securities Trading Services

 Why Choose NISL?
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 Competitive Fees:
 NISL is flexible enough to offer very competitive fees therefore
giving you the highest value per Naira invested.
 Confidentiality:
 NISL very strongly believes in and maintains a very high standard
of confidentiality in all its dealings.
 Dedication
 Our structure guarantees that your business would be prioritized and
not treated as “just another account”.
 Professionalism
 We operate with the highest level of professionalism and in line with
global best practices.

Investment Management, Financial Advisory and Securities Trading Services

 Why Choose NISL?
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 Transparency
 NISL conducts its business in the most transparent manner and
in the client’s best interest.

 Efficient & Responsive Service

 Highly professional & convenient service.
 Real time online access to account information.

Investment Management, Financial Advisory and Securities Trading Services

 Why Choose NISL?
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What is ProTrader?
ProTrader is an online Real-time Fix-enabled trading
software that enables clients to trade on the Nigerian
Stock Exchange online real-time from anywhere in the
world, it also allows customers to manage their stock
portfolios.
What can you do with NISL ProTrader?
 Buy Equities Real-time
 Sell Equities Real-time
 Modify or Cancel unexecuted orders
 View detailed summary of your Order Executions
 View live NSE market data
 View price/volume charts for different equities
 View market news, such as Company earnings and corporate actions

Investment Management, Financial Advisory and Securities Trading Services

 Next Steps
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 Appoint NISL as your Investment Manager.

 Submit duly executed Client Information Form and the necessary

KYC documents.

 Sign Securities Trading Agreement/Service Level Agreement

with NISL.

 Issue mandates for transactions.

Investment Management, Financial Advisory and Securities Trading Services

 Contact NISL
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Investment Management, Financial Advisory and Securities Trading Services