FGN Savings Bond Commences For 2018 — Leadership Newspaper
Connect with us
Advertise With Us

BUSINESS

FGN Savings Bond Commences For 2018

Published

on


The federal government yesterday commenced the sale of its FGN Savings Bond subscription for two-year and three-year to investors at 11.098 per cent and 12.098 per cent annually, respectively.

The offers which is the first in the year 2018, opened on January 8, 2018 to close on January 12, 2018 and settlement date to be January 17, 2018, with a coupon payment on April 17, July 17, October 17, 2018 and January 17, 2019.

An FGN Savings Bond is a bond issued by the Debt Management Office (DMO) on behalf of the Nigerian government. The bond is tailored and targeted at retail investors and includes a guaranteed interest payment and repayment of the principal.

A statement from the Debt Management Office, DMO, said the two-year bond will be due in January 17, 2020, while the three-year bond has a maturity date of January 2021. The offer has a minimum subscription of N5,000 with increases thereafter in multiples of N1,000 up to a maximum subscription of N50 million.

According to DMO, the bond is backed by the full faith and credit of the federal government, with quarterly coupon payments to bondholders. The DMO stated that the savings bond will help broaden the country’s funding base.

The FGN Savings Bond is targeted primarily at retail investors to enable them contribute to the development of the country, while also earning good returns on a safe investment in a sovereign instrument. The FGN Savings Bond was launched by the DMO in March 2017 and is issued every month through stockbroking firms trading on the Nigerian Stock Exchange.

The FGN Savings Bond is promoting the savings culture in the country and enhancing financial inclusion. Since its introduction in March, the FGN Savings Bond has attracted a lot of new investors to the FGN Securities market with its attractive features. The income earned on the FGN Savings Bond is exempted from taxes and it can be traded in the secondary market on the Nigerian Stock Exchange (NSE).



Copyright LEADERSHIP.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from LEADERSHIP Nigeria Newspapers. Contact: editor@leadership.ng







Advertisement
Comments

MOST POPULAR