February 2, 2021/InvestmentOne Report
The offer for the Forty-four (44) series of the FGN savings bond will be coming up between the 1st of February 2021 and 5th of February 2021 and Investment One Stockbrokers Int’l Ltd as a Distribution Agent (DA) for the bond, will be receiving applications from the investing public starting from the 1st of February 2021
Recall that the Federal Government of Nigeria, through the Debt Management Office (DMO), had on the 13th of March 2017 issued the first series of the monthly 2 year and 3 year tenured savings bond. The Forty-four (44) series of the FGN savings bond is at the following rates:
2-Year FGN Savings Bond due February 10, 2023: 4.214% Per annum
3-Year FGN Savings Bond due February 10, 2024: 5.214% Per annum
The bond is also listed on the floor of the NSE for the benefit of those who may want to trade theirs before maturity.
What are Savings Bond?
Savings bonds are debt instruments offered by the government with the aim of mobilizing resources from the general public.
The rationale behind the issuance of the savings bond by the FGN is to deepen the national savings culture, to diversify funding sources for the government and establish a benchmark for other issuers.
Features;
Minimum subscription Amount: N5,000.00 (additional investments in multiples of N1,000.00) and maximum of N50,000,000.00.
The product will be issued monthly in tenors of 2 and 3 years, with quarterly interest payments.
The bond will be listed on the Nigerian Stock Exchange to guarantee liquidity.
The product will be offered to the investing public through offer for subscription at an interest rate to be determined by the DMO.
Benefits;
Guaranteed return and encourage financial inclusion among low-income households.
Income from investments are exempted from tax.
Investment can be used as collateral for loan.
Attractive coupon above average bank savings rate.
Steady means of Income as coupon is paid quarterly.
