Dear Investor,
We write to inform you about
the timing of the next Federal Government of Nigeria Savings Bond which will
open on the 8th of May 2017. The bond subscription period will run
from 8.00am on Monday the 8th of May 2017 till 12.00 noon Friday, the 12th of May
2017.
The Savings Bond will have
almost all the features of the existing FGN Bond plus other features/benefits
to the bondholder. It will be backed by the full faith of the Federal
Government of Nigeria and is therefore deemed risk free.
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Features of the
Forthcoming FGN Savings Bond: S/N
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Subject
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Features
|
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1.
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Interest / Coupon rate
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To be advised by DMO
|
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2.
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Tenor
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To be advised by DMO
|
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3.
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Interest / Coupon payment
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Coupon will be paid quarterly
while the principal will be paid at
maturity
|
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4.
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Transfer and Custody Agent
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Central Securities Clearing
System Limited
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5.
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Settlement
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Bond holders will have their
holdings credited into their CSCS
Account. (In the event a
customer purchases the Bond but does not have a CSCS account or inputs a
wrong account number on the form, his / her holdings will be credited into a
Custodian account domiciled with the CSCS till the account is opened or the
mistake is rectified.
.
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6.
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Settlement Date
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17 May 2017 (T+3)
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7.
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Subscription Amount
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Minimum of N5,000 plus
multiples of N1,000 and Maximum of
N50,000,000
|
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8.
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Subscription Period
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Monday May 8 – Friday May
12, 2017
|
|
9.
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Listing
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The Bond will be listed and
tradeable on The Nigerian Stock
Exchange
|
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10.
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Auction and Frequency of
Issuance
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Subsequent bond offerings
will be on the first Monday of the next month
|
|
11.
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Subscription Mode
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Investors are to subscribe
through stockbroking firms accredited by the DMO to act as distribution
agents. (Capital Bancorp Plc is one of the DMO accredited stockbroking
firm investors can subscribe through).
|
Benefits of FGNSB:
Ø It offers better returns than interest rates currently
being paid by banks on savings accounts
Ø Steady source of income as coupon will be paid
quarterly.
Ø It offers capital preservation as the Bondholder needs
not worry about losing his/ her capital if held to maturity.
Ø Provides an alternative source of portfolio
diversification
Ø Interest income from investments are tax free
Ø The investment can be used as collateral for a loan
from Bancorp Finance (one of our subsidiaries) and other sources.
Ø It helps investors save towards larger investments or
retirement
Ø Coupons
can be reinvested to increase holdings and yield to maturity.
How to Apply and Make
Purchase
Ø Open a stockbroking / CSCS account with Capital
Bancorp Plc (Advisable to be done before auction date)
Ø Fill and submit the Subscription form for each tenor
separately (Please use the
new form attached or on our website)
Ø Credit
Capital Bancorp bank account with the said amount (To make reconciliation of payments easy,
kindly state the full names of beneficiaries and FGNSB in all payment
instructions. Also remember to include bank charges to any payment made into
our accounts)
Acct. Name: Capital Bancorp
Plc
Bank: First Bank of Nigeria
Acct. No. 2028514293
Ø On
settlement date (May 17th 2017) CSCS
credits investors account with volume of bonds purchased
*please note that
payments for the bond purchase should be made into Capital Bancorp Bank account
as cash payments to account officers/individuals are not accepted.
Transaction Cost
Ø Primary Auction: There are no charges for purchases
made through the primary auction
Ø Secondary
Market: A transaction cost of 1% of total face value will be charged for
secondary market Buy / Sell transaction while CSCS will charge 0.0001%.
All forms required
to open an account and apply to purchase the instrument are available on our
website http://capitalbancorpng.com/downloads/stockbroking_forms
(Kindly fill and submit electronically (stockbroking@capitalbancorpng.com)
or to any of our locations the completed stock broking account form and the
Final Subscription Form FGNSB).
For further information
kindly contact any of our staff below:
Lagos Office:
1. Seun 0806 720 9845 or
sfajemirokun@capitalbancorpng.com
2. Bode 0802 418 5046 or
badebayo@capitalbancorpng.com
3. Kunbi 0808 067 5225 or
aadeyemi@capitalbancorpng.com
4. Tosin 0802 831 5907 or
tolojo@capitalbancorpng.com
Port Harcourt Office:
1. Promise
` 0806 657 4451 or pagugharam@capitalbancorpng.com
2. Oluchi
0806 521 7790 or oagala@capitalbancorpng.com
Contact Person in Ibadan:
1. Abiodun
0803 238 9317 or aclarkson@capitalbancorpng.com
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