Introducing FGN savings bond offer for April 2019

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This is to bring to the notice of the public that the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), wishes to introduce a retail savings product that will be accessible to all income groups – the FGN Savings Bond.

Kindly note that the FGN Savings Bond for April 2019 kicked off today.
For a clear understanding of what FBN Bonds is all about, please check here…
ISSUANCE
MATURITY
2 Year FGN Savings Bond
April 10, 2021: 11.276% per annum
3 Year FGN Savings Bond
April 13, 2022: 12.276% per annum
Opening Date
April 1, 2019
Closing Date
April 5, 2019
Settlement Date
Wednesday, April 10, 2019 (this is the date the bonds will be credited into your CSCS Account domiciled with your broker).
Units of Sale
N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.
Interest Payment
Quarterly (Coupon rate divided by 4)
Redemption
Bullet payment on the maturity date
Coupon Payment Dates: July 10, October 10, January 10, April 10

Purpose

To deepen the national savings culture.
To provide an opportunity to all citizens irrespective of income level to contribute to National Development.

To enable all citizens to participate in and benefit from the favourable returns available in the capital market.
To diversify funding sources for the Government.

Benefits
Interest income is paid quarterly directly into the bond holder’s account.
The Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.
Good for savings towards retirement, marriage, school fees, house projects, etc.
Safety: backed by the full faith and credit of the Federal Government of Nigeria.

Liquidity

The Bond will be listed on the Nigeria Stock Exchange for trading and provides liquidity for investors who want to exit before maturity.

Subscription Mode

Investors are to subscribe through stockbroking firms trading on the floor of The Nigerian Stock Exchange (NSE) and accredited by the DMO to act as Distribution Agents. (Please visit www.dmo.gov.ng for the list of accredited Stockbroking Firms).

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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