DMO issues two savings bonds at 10.746%, 11.746% coupon rates

by Iheanyi Nwachukwu

March 8, 2018 | 12:35 am
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The Federal Government of Nigeria (FGN) Savings Bond offer for this month opened on Monday March 5, 2018 with a minimum subscription of N5,000 and maximum subscription of N50million.

The 2-Year FGN Savings Bond due March 14, 2020 is currently being offered at a coupon rate of 10.746 percent per annum; while the 3-Year FGN Savings Bond due March 14, 2021 is offered at a coupon rate of 11.746 percent per annum.

The subscription period for the two bonds is just five days as it ends by 12 noon tomorrow Friday March 9, 2018. 

According to the Debt Management Office which issues the savings bond on behalf of the Federal Government of Nigeria, the settlement date is March 14, 2018; while the Coupon Payment Dates are June 14, September 14, December 14, and March 14 respectively.

The coupon rate is the rate of interest paid by the bond issuer (Debt Management Office on behalf of Federal Government of Nigeria) on the bond’s face value.

FGN Savings Bond is an investment vehicle offered by the Sovereign that serves to meet the investment needs of low-high income citizens in the economy by enhancing their savings culture while also acting as an efficient debt management tool for the Nigerian Treasury.

The FGN Savings Bond benefits individual savers, small businesses, co-operatives, foundations, nonprofit organizations and other investors. Nigerian citizens resident abroad and foreigners resident in Nigeria are also eligible. FGN Savings Bond is a scrip-less security as allotment is done electronically into investor’s Central Securities Clearing Systems (CSCS) account and investors will receive notifications.

The West African Securities Regulatory Authorities (WASRA) is planning to establish a regional bond issuing framework for infrastructure financing in the region. This was one of the high points of the meeting of the body held in Abidjan, Côte d’Ivoire last weekend.

Also, the body is working towards building relationship between WASRA and ECOWAS Commission, the supervision model needed for the establishment of cross border transaction and issuers, the development of the WASRA website, the signing of the Revised Charter of WASRA and the assigning of web master to a member country amongst others.

WASRA is a regional organization for West African countries that aims to fashion out modalities and to establish an umbrella body as mutually acceptable basis for cooperation and consultations aimed at fostering market integration in the region. WASRA, established in 2015, is the recognized forum for capital markets regulators in the West African Sub Region.

Iheanyi Nwachukwu

by Iheanyi Nwachukwu

March 8, 2018 | 12:35 am
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