FGN SAVINGS BOND APRIL 2017 ISSUANCE

The Debt Management Office came out with a from format for the FGN Savingd Bond Today.

With 2 and 3 years tenors with coupon rates of 12.794% and 13.794% respectively.

Start calling your Brokers now, offer closes on Friday, 7th April 2017.

 FGN SAVINGS BOND ........good investment opportunity for all

FGN SAVINGS BOND 
April 2017 Offer
Opens: Monday, April 3rd 
Closes: Friday, April 7th 

The benefits and features remain the same.

Hurry do not miss out on the new issue for April.



The FGN SAVINGS BOND would be introduced into the Nigeria Capital Market on 13th March 2017 when the Debt Management Office (DMO) would issue the first of its kind and one of the many that would be issue going forward.

Retail depositors in time past get little or nothing for keeping their hard earned money as deposit with the deposit money banks. The minimum requirement for other guaranteed investments like the Treasury Bill and FGN Bonds most of the time is above the reach and means of these set of investors.

Then the FGN SAVINGS BOND! The Purpose of which to:

• To deepen the national savings culture. 
• To provide opportunity to all citizens irrespective of income level to contribute to National Development. 
• To enable all citizens participate in and benefit from the favourable returns available in the capital market.
• To diversify funding sources for the Government.

The aforementioned however comes with benefits in:

• Interest income is paid quarterly directly into bond holder’s account.
• The Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.
• Good for savings towards retirement, marriage, school fees, house projects, etc.
• Safety: backed by the full faith and credit of the Federal Government of Nigeria.

It is worthy to note at the juncture, that this Bond comes with some features like:

• Monthly issuance in tenors of 2 and 3 years, with quarterly payment of interest to investors.
• The product will be offered to the investing public through Offer for Subscription at an interest rate to be announced by the DMO. 
• The Offer for subscription will be open for 5 days from the date of announcement.
• Minimum subscription amount is N5,000.00 with additions in multiples of N1,000.00, subject to a maximum of N50,000,000.00. 
• The Bond is backed by the full faith and credit of the Federal Government of Nigeria.

How do you participate?

You subscribe through stockbroking firms trading on the floor of The Nigerian Stock Exchange (NSE) and accredited by the DMO to act as Distribution Agents. (Please visit www.dmo.gov.ng for the list of accredited Stockbroking Firms).

The Introduction of the FGN SAVINGS BOND came with its own effect on the existing market structure in the following ways:

FGN Saving Bonds - minimum subscription N5,000.00, maximum N50,000,000.00.
Nigerian Treasury Bills - minimum subscription N50,001,000.00.
FGN Bonds - minimum subscription N50,001,000.00.

The implication of the above is simply saying that, the only source of guaranteed investment for retail investors now is the FGN SAVINGS BOND.

We belief that the introduction of this bond would affect several products in the industry. Products like, target savings for retirement, education, marriage, holiday etc. products like Mutual Funds too would also be affected if the returns is not competitive enough. While it is not a surprise that all manner of deposits with the Banks would also be reviewed. The Banks, Insurance and the Fund Managers would have to up their games.

We however, belief that this new entrant would create a competitive environment which in the long run would benefit   the populace.

Do not be left out of this epoch event. Start making does calls to your Stockbrokers/Investment Advisers.

Do note that it is possible for you to be earning monthly income continuously by investing in three successive tranches of the bond.

Find Below a jingle from the DMO.

The Rate of The Savings Bond is 13.01%