NSE lists Series 1 of FGN N2bn Savings Bond

THE Nigerian Stock Exchange (NSE) has, on Wednesday, exclusively listed the Series 1 of the Federal Government of Nigeria (FGN) 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 Monday, March 13, 2017 to March 17, 2017 and N2,067,961,000 was raised from the retail market at 13.01 per cent coupon.

Debt Management Office on behalf of the FGN has exclusively listed FGN Savings Bond on NSE Retail Bond Market.

Director-General of DMO, Abraham Nwankwo, while speaking on the benefits of the Savings Bond at the Exchange noted that it was a means by which the Federal Government was enhancing financial inclusion as investors had the opportunity of participating in national development via subscription to the bond.

He said the bond, among others would be used to fund the nation’s deficit budget, adding that this was in tandem with the Federal Government’s inclusiveness agenda, as well as enhance savings culture among Nigerians, while providing all citizens irrespective of income level, as well as the comparatively favourable returns available in the capital market.

He noted that 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, which can be sold on the floor of the exchange if need be.

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 N50milliom.

Commenting on the listing, Haruna Jalo-Waziri, Executive Director, Capital Markets, NSE, 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 offtake 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”.

The series 2 of the savings bond will be opened for subscription between April 3 and 7, 2017. Subsequent series would be opened on the first week of every month.