The Federal Government has concluded arrangements to launch its first-ever savings bonds into the domestic bond market next month, providing the retail investing public opportunity to invest in sovereign bond issue for as low as N5,000.
Market sources and parties to the savings bonds, to be known as Federal Government of Nigeria Savings Bond (FGNSCB), said the issuance of the savings bond could start next month as the government and its professional parties have concluded the pre-offer process for the bond.
The savings bond will bear all the regular features of a national bond, including the zero default rate of a sovereign issuance, fixed coupon or interest rate, privileges and exemptions from certain taxes and levies, as outlined by the Central Bank of Nigeria (CBN), Federal Inland Revenue Services (FIRS) and other government ministries, departments and agencies (MDAs).
The Debt Management Office (DMO), which oversees issuance of Federal Government bonds, will be issuing the savings bonds on behalf of national government.
A copy of the issuance documents obtained at the weekend by The Nation indicated that the FGNSB is deliberately targeted at the lower income earners as part of government’s plan to encourage savings and also earn more income from their savings compared with savings accounts with banks.
The bonds will be issued with a tenor (period) of between two to three years and a minimum size (amount that can be purchased) of investment of N5,000 and maximum of N50 million.
The interest rate, which will be fixed, will be paid quarterly, enhancing the attraction of the savings bond as grassroots instrument for the general public.
The attractions of the savings bonds, according to the issuance documents, included guaranteed returns, competitive fixed interest rate, tax exemption for the interest incomes and collateral for loans.
The retail savings bonds will, in addition, encourage financial inclusion among low income households and enable the public to enjoy those benefits which accrue to high net-worth investors in the capital market.
With the collateralisation of the bond certificate, subscribers can use the bond certificate as guarantee and collaterals where such are required in transactions with the MDAs, financial institutions and private organisations.
Investors will also be able to purchase the savings bond in small units through physical offices and several online platforms. After the closure of the primary issue for the savings bond, retail investors will be able to buy and sell the bonds through the Nigerian Stock Exchange (NSE).
Already, DMO has reached a Memorandum of Understanding (MoU) with the stockbroking community on the marketing and distribution of the savings bond.
The savings bonds will be traded like quoted equities and other securities on the NSE with stockbrokers expected to make two-way quotes for the FGNSB in order to provide secondary market liquidity for the savings bond.
The stockbrokers will act as agents to the DMO for the marketing and distribution of the FGN Savings Bond to retail investors, including selling the FGN Savings Bond to existing clients using their retail investor base and attracting new ones in order to deepen the retail market for FGN securities.

http://thenationonlineng.net/fed-govt-sell-n5000-savings-bond-public/

lalasticlal

At what rate?

One person will just buy off the whole bonds...

eezeribe:
One person will just buy off the whole bonds...

That my friend will attract efcc like that... More so I don't think it is a very progressive thing investing in bonds for young people in particular

searchng4love:

That my friend will attract efcc like that... More so I don't think it is a very progressive thing investing in bonds for young people in particular

You shouldn't have quoted me cos I didn't mention your name.
That's not how it works...
In the financial market,anybody is free to subscribe for(buy) as many units of shares,bonds and Treasury bills,either from the primary market or secondary market.
You can visit the DMO (Debt management office) for clarification.
Sometimes these public offers even get over subscribed for by individuals(I hope you understand)

According to Robert Kiyosaki...
"Financial intelligence(FI) is better than intelligence quotient(IQ)

eezeribe:


You shouldn't have quoted me cos I didn't mention your name.
That's not how it works...
In the financial market,anybody is free to subscribe for(buy) as many units of shares,bonds and Treasury bills,either from the primary market or secondary market.
You can visit the DMO (Debt management office) for clarification.

According to Robert Kiyosaki...
"Financial intelligence(FI) is better than intelligence quotient(IQ)

Robert kiyosaki is a failure. Quote another person.

Lemme go and buy

Ok

Shey after payment, you go beg for your certificate ...

You go beg till you take them to court for not issuing certificate after 5years.

Court go adjourn the case for another 5years...

That's 10years gone.

Na so your N5k don go be that.

Buhari is dead, so the Asorock cabal is looking for a way to rape Nigeria before they announce his death.

Osunbade is getting it alright. Buhari pls take up British citizenship and remain in london.
Long may your vacation last. After osunbade has cleaned up the mess you created, you can now come back and continue management.

This is lovely.

Kemi Adeosun is far better and greater than Madam Ngo.

I must surely partake in this.

[s]

frenchwine:
Osunbade is getting it alright. Buhari pls take up British citizenship and remain in london.
Long may your vacation last.

[/s]
Childish rant of defeated soul!

Please, kindly let us know when the bond gets to the market. I plead sincerely.

Thanks in advance

Lol

can someone break this bond suff down...i want a layman understanding

Big question for the house....

How does one go about buying a bond?

Just want to know....I have no immediate plans to buy bonds yet!

HRich:
Forget FG and Let's make money for the week, editing is allowed, but I trust my judgement

3JPJHH2
3JPJJ77
3JPJL39

PassingShot:
[s][/s]
Childish rant of defeated soul!

And ye shall know the truth, and the truth shall set you free.
Some things are as clear as daylight, you don't need an education to appreciate them

I see where this is going to. PMB has not been able to pay his medical bills, that's why he has not come back. So they are looking for fund to clear his medical bills.

PYO please don't approve this policy, we don't want PMB back yet, we won't buy even if you approved it.

eezeribe:
One person will just buy off the whole bonds...

The FG top men and women must have already booked all and awaits to resell at a higher price to the public.

Hmmm

frenchwine:

And ye shall know the truth, and the truth shall set you free.
Some things are as clear as daylight, you don't need an education to appreciate them

Children who should be studying for their undergrad program aplenty here.

People should understand that boud is a loan the investing public give to the government.

We should be careful with the kind of loans or government is collecting.

GOOD DEVELOPMENT

Nice. Children of hate and perdition, come wail as usual.

OBAGADAFFI:
People should understand that boud is a loan the investing public give to the government.

We should be careful with the kind of loans or government is collecting.

Loan as how? in layman voice pls

right


anything fg and future tenses is a lie until evidence confirms to be true

PassingShot:

Children who should be studying for their undergrad program aplenty here.

Yawns