THUR, APRIL 16 2020-theG&BJournal- The Nigerian Stock Exchange has released its latest weekly Securities Lending and Borrowing Report. The report includes 12 Securities available to be lent as at April 9, 2020 and represents the lending pool of one of the approved securities lending agent, Stanbic IBTC Nominees.
The volume of equities on pledge ranges from 8,580, 000 for Guaranty to 50, 000 for CAP plc. Other equities available to be lent include, NB-318,000, MTNN-2,547, 000, PRESCO—4, 014, 000, UBA-2,600,000, UBN-450,000, ZENITHBANK-1,661,500, OKOMUOIL-2,190,000, DANGCEM-1,740,00, DANGSUGAR-2,350,000 and FLOURMILL-600,000.
The report also includes Historical Securities Lending and Borrowing transaction report for 2019 and 2020.
Securities lending (stock-lending) allows lending agent to temporarily transfer securities, for a fee, from a holder (lender) to the borrower with the borrower agreeing to return the securities to the lender either on-demand or at the end of the agreed loan term.
This practice usually requires the borrower to collateralize the transaction with cash or other securities of a value equal to or greater than that of the lent securities, in order to protect the lender against counterparty credit risk.
Those who borrow the stocks are often active market players and the in most climes works well for idle portfolio holders who lend stocks at a fee while retaining ownership including voting rights on equity.
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