The bond will be an addition to the FGN securities market and is a retail savings product accessible to all income groups. The purpose of the bond is to encourage a national savings culture and create an avenue for investors to benefit from the favourable returns available in the capital market. The FGNSB will be backed by the full faith of the Federal Government of Nigeria and is thus deemed to hold no default risk.
The FGNSB is expected to be issued monthly in tenors of 2 and 3 years via an offer for subscription. The subscription period would be opened for five working days, within which investors can submit their subscriptions through authorized distribution agents.
The February 2018 edition of the Offer for Subscription of the Federal Government of Nigeria Savings Bond (FGNSB) is now open. The Debt Management Office (DMO) has announced that it has been authorized to receive applications for fresh Issues of the FGNSB on the following terms:
1. 2-Year FGN Savings Bond due February 14, 2020
Interest Rate: 10.277%
2. 3-Year FGN Savings Bond due February 14, 2021
Interest Rate: 11.277%
Investors may apply for either or both of these maturities, as preferred. Please find below additional information to guide your application:
Account Name: FBN Securities IPO Account
Bank: First Bank of Nigeria Plc
Account Number: 2031788029
Investors should immediately contact their Relationship Managers or send an e-mail to email@example.com with evidence of payment for immediate confirmation of payment receipt.
The CSCS is expected to credit investors’ account with allotted FGNSB volume on the settlement date.