Stakeholders accessible on Green Bond as Global Demand Hits $60trn

To all the Stakeholders in the Nigerian capital market, this is to bring to your notice that the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), wishes to introduce a retail savings product that will be accessible to all income groups Known as the Federal Government of Nigeria Savings Bond (FGNSB).

 

1.       Commencement Date

· Offer will be opened on Monday, March 13, 2017 and will run for 5 days.

 

2.      Purpose

· To deepen the national savings culture

·  To provide opportunity to all citizens irrespective of income level to contribute to national Development

· To enable all citizens participate and benefit from the favourable returns available in the Capital Market

· To diversify funding sources for the government

 

3.      Benefits

·Interest income is paid quarterly directly into the bond holders account

·The bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity

·Good for savings towards retirement, marriage, school fees, house projects, etc.

·Safety: backed by the full faith and credit of the Federal Government of Nigeria

 

4.      Features

·The product will be issued monthly in tenors of 2 and 3 years, with quarterly payment of interest to investors

·The product will be offered to the investing public through offer for subscription at an interest rate to be announced by the DMO

·The offer for subscription will be open for 5 days from the date of announcement.

· Minimum subscription amount is NGN5,000 with additions in multiples of NGN1,000, subject to a maximum of NGN50,000,000

·The bond is backed by the full faith and credit of the Federal Government of Nigeria.

 

5.      Subscription Mode

·Investors are to subscribe through stockbroking firms trading on the floor of the Nigerian Stock Exchange (NSE) and accredited by he DMO to act as distribution agents (visit www.dmo.gov.ng for the list of accredited stockbroking firms).

 

6.      New Market Structure

In view of this addition to the FGN securities market, the new market structure for the FGN securities market will be as follows:

Ø  FGN Savings Bonds – minimum subscription N5,000, maximum N50,000,000

Ø  Nigerian Treasury Bills – minimum subscription N50,001,000

Ø  FGN Bonds – minimum subscription N50,001,000.

Please note that the new market structure takes effect from March 6, 2017. www.dmo.gov.ng