NSE Lists First FGN Savings Bond

• NSE Lists First FGN Savings Bond

The Nigerian Stock Exchange has listed the first series of the Federal Government of Nigeria savings bond, maturing March 2019.

The savings bond, the first of its kind in Nigeria, was opened to investing public by way of offer for subscription over a five-day offer period starting from March 13, 2017 to March 17, 2017, and N2,067, 961,000 was raised from the retail market at 13.01 per cent coupon.

The Debt Management Office on behalf of the Federal Government has exclusively listed the FGN savings bond on NSE retail bond market.

The benefits of the bond among others were given as enhancing the 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 said to be safe and backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.

An interested investor would need to approach any of the accredited brokers with a sum of N5,000 to subscribe.

The Executive Director, Capital Markets, NSE, Haruna Jalo-Waziri, said, “We are pleased to list 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 the DMO to list subsequent series of the savings bond.”

The Director-General of the DMO, Dr. Abraham Nwankwo, was hosted to a closing gong ceremony to commemorate the listing. Thereafter, he met with stockbrokers to review activities on the series 1 savings bond and thanked them for their support.

The series 2 of the savings bond will be opened for subscription between April 3 and April 7, 2017.