The Nigerian Stock Exchange, on Wednesday, admitted Series 1 of the maiden Federal Government of Nigeria (FGN) Savings Bond, maturing March 2019 for listing, even as plans are in top gear to list Series 2 of the savings bond which opens for subscription between April 3 and 7, 2017.
The Debt Management Office (DMO), on behalf of the Federal Government raised total of N2,067,961,000 from the retail market at 13.01% coupon, through the bond which opened to investing public by way of offer for subscription over a five-day period beginning from Monday, March 13, 2017 to March 17, 2017 and was raised.
A statement by the NSE listed benefits of the bond amongst others to include helping to enhance savings culture among Nigerians while providing all citizens irrespective of income level, an opportunity to contribute to national development; as well as the comparatively favourable returns available in the Capital market.
The FGN Savings Bond is safe and backed by the full faith and credit of the Federal Government of Nigeria, with quarterly coupon payments to bondholders. An interested investor needs to approach any of the accredited brokers and require only the sum of N5, 000 to subscribe with additions in multiple of N1, 000 subject to a maximum amount of N50m.
Commenting on the listing, Haruna Jalo-Waziri, Executive Director, Capital Markets, NSE, expressed pleasure at listing “the series 1 of this innovative investment offering that caters to the retail segment of the Nigerian Capital Market.
“The off-take of the first tranche underpins the efforts of the Federal Government to continue to work with stakeholders to deepen the Capital Market whilst 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”.
After the listing ceremony, Director-General of the DMO met with stockbrokers to review activities on the series 1 savings bond and thank them for their support on the initiative.