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Economy

NSE Lists N856.5m FGN Savings Bond

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By Modupe Gbadeyanka

Federal Government of Nigeria (FGN) Savings Bond worth N856.48 million has been listed on the trading floor of the Nigerian Stock Exchange (NSE) as at June 8, 2018.

Last year, the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, launched a new retail investment programme.

The FGN Savings Bond 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.

It was gathered that on January 8, 2018, the stock exchange listed N196.17 million each of 12.738 percent and 11.738 percent FGN Saving Bond December 2020, and 2019 respectively.

Also in March 2018, the stock market regulator listed N235.02 million, N32.82 million, N123.25 million and N73.1 million.

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. The bond has a minimum subscription of N5, 000 with additions in multiple of N1,000 with a maximum of N50 million.

Fixed coupon would be paid quarterly to investors and the bond tenors range from two to three years’ tenor. The couple rate for the two–year FGN Savings Bond is 10.344 percent, while the three– year FGN Savings Bond stood at 11.344 percent and the offer is being issued on a monthly basis through an offer for subscription and with a period of five days from the date of announcement. However, investors’ participation in the FGN Savings Bond has been on a decline since its introduction in March 2017.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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