The Nigerian Stock Exchange (“NSE” or Exchange) today 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 5 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 percent coupon.
The benefits of the bond which is listed on the NSE Retail Bond Market amongst others is to help enhance 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 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 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 DG of the DMO 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 thank them for their support on the initiative.
The series 2 of the savings bond will be opened for subscription between April 3 and 7, 2017.