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FG rolls out second offer of savings bond

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The Federal Government has opened application list for subscription to the second tranche of its Federal Government of Nigeria Savings Bond (FGNSB).

The application list for the second tranche, which opened on Monday April 3, will run till close of business on Friday April 7, 2017.

In the first tranche of the FGNSB which ran between March 13 and March 17, 2017, total number of subscription was 2,577 bids with total size of N2.067 billion.

The details of the offer remained unchanged. Minimum subscription has been fixed at N5, 000 while the maximum subscription for the new security is fixed at N50 million. The coupon will be paid quarterly while there will be a bullet repayment of the principal at the end of the tenor, otherwise known as maturity date or redemption date.

The Federal Government, through the Debt Management Office (DMO), had last week listed its first-ever Federal Government of Nigeria Savings Bond (FGNSB) on the Nigerian Stock Exchange (NSE), paving the way for investors in the retail bonds to trade on their units.

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The Director General, Debt Management Office (DMO), Dr. Abraham Nwankwo, listed the 13.01 per cent N2.067 billion Series 1 FGN Savings Bonds 2019 at the NSE in Lagos. The first tranche carries a coupon of 13.01 per cent and has a two-year tenor that matures in March 2019.

Nwankwo said the first tranche was successful citing the spread of the bids with about 95 per cent of the bids from individual Nigerians of average means ranging from artisans to low-income earners across the various geopolitical zones of the country.

He said the maiden offer had successfully achieved the aim of opening up the debt capital market to the retail investors in furtherance of the commitment of the government to ensure inclusive growth.

He reiterated that the FGNSB will be issued every month adding that the listing on the Exchange has provided additional opportunities in terms of ability of the retail investors to recoup their savings whenever they want.

Nwankwo outlined that the FGNSB would help to enhance the savings culture among Nigerians as well as provide all citizens irrespective of income level, an opportunity to contribute to national development while earning decent returns.

Executive director, Nigerian Stock Exchange (NSE), Mr. Haruna Jalo-Waziri, said the FGNSB was an innovative investment offering that caters to the retail segment of the Nigerian capital market.

He said the successful launching of the first tranche underpinned the efforts by the Federal Government to continue to work with stakeholders to deepen the capital market while delivering value to investors at all income levels.

“We look forward to continue the collaboration with DMO to list subsequent series of the savings bond,” Jalo-Waziri said.

 

 

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0 Comments

  1. yanju omotodun

    April 4, 2017 at 7:58 am

    So where can the bonds be purchased because there are no list of partners like insurance brokers house, banks among others where we can procure it. I remembered the first tranche partners with stanbic Ibtc.

    • Roland Uchendu Pele

      April 4, 2017 at 9:47 am

      I think there is no difference between the first and the second. From what has been published, the only new thing is the Maximum principal which is now N50million. Every other information from the first tranche is carried over to the second.

    • seyi jelili

      April 4, 2017 at 11:51 am

      You can buy the bonds from me too. Just inbox me via 08060004569. The federal government has authorised me to sell too.

  2. Anita Kingsley

    April 4, 2017 at 9:20 am

    I hope all these good moves from the federal government will help us conquer recession this quarter of the year.

    • Animashaun Ayodeji

      April 4, 2017 at 9:50 am

      Look away from recession, we need to start working on building a better Nigeria, recession has been conquered already. In a matter of weeks, there will be relief in the country and everything will be smooth again.

      • Joy Madu

        April 5, 2017 at 3:49 am

        Amen to that but not by words but by action

  3. JOHNSON PETER

    April 4, 2017 at 11:21 am

    Apc has given us the desirable change indeed. More employment opportunities have been generated, reasonable development in transport sector, approval of illegal refineries to produce oil, wealth generation and strengthening of naira against dollar but Boko Haram has not been defeated.

    • Agbor Chris

      April 4, 2017 at 11:37 am

      GOD BLess you for not joining the nonentities calling themselves opposition party. This is the best government in the history of Nigeria. I’m confident all the security challenges we’re experiencing will soon come to an end.

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