How do top corporates and banks use NIBOR in pricing floating rate contracts?

How do top corporates and banks use NIBOR in pricing floating rate contracts?

A floating rate contact is an investment/loan instrument whose interest payment is tied to some variable (floating) interest rate benchmark.

The coupon/interest amount fluctuates according to the rise or fall in the market interest rates. NIBOR was established as a standardised benchmark for the
pricing of such floating rate contracts in Nigeria.
The parties to the contract agree on a specific benchmark tenor (e.g. 3-month NIBOR) and the specific day to make reference to the benchmark.

On the agreed date, the applicable benchmark rate is used to derive the coupon/interest payment on the contract.

FMDQ-OXFO Partnership
With innovative technology and strategic partnerships we create a new value network and redefine the cost structure for homeownership so that more people
FMDQ Sustainability Agenda
FMDQ, through its activities, aims to achieve sustainability in the areas it actively operates and impacts, as such, its Sustainability Strategy is guided by five (5) main Sustainability Pillars…
Report

Get access to industry data and reports

Report

Get access to industry data and reports

Report

Get access to industry data and reports

Report

Get access to industry data and reports