DMO targets retail investors with First FGN Savings bond issued Monday

The FGN Savings Bond, a retail product accessible to all income groups is being introduced by the Debt management Office on behalf of the Federal Government of Nigeria to further encourage an all-inclusive participation in investments.

The bond which creates a window of opportunity for Nigerians to harness the huge benefits derivable from retail bonds will unlock on Monday 13th March, 2017, when subscription for the Federal Government of Nigeria Savings Bond (FGNSB) opens.

The offer will run for five days, with subscription forms available through Stanbic IBTC Stockbroker Limited and in all branches of Stanbic IBTC Bank across the country and can be traded on the floor of The Nigerian Stock Exchange through Stanbic IBTC Stockbrokers Limited or any other designated broker.

Asides being affordable and easily accessible to investors, the interest income (coupon) on the FGN Saving bonds to the Investors is tax exempt and paid quarterly directly into bond holder’s bank account. The Bond is also acceptable as collateral for loans by banks and can be easily divested, by trading in the secondary market (i.e. on the floor of the Nigerian Stock Exchange).

The FGN Savings bond is also designed for Investors whose aim is to save toward retirement, marriage, school fees, house projects, and others

According to the Debt Management Office (DMO), the retail savings bond product will be accessible to all income groups for subscription at NGN5,000.00 per unit, with a maximum subscription of N50 million and a tenor ranging from two to three years.

Director General, DMO, Dr. Abraham Nwankwo, speaking during the recent listing of the US$1 billion FGN Eurobond on The Nigerian Stock Exchange, had hinted the market of the government’s plan to democratize the bond market by making it easily accessible to most Nigerians. He said by promoting retail participation in the bond market, the goal of encouraging an all-inclusive participation in investments and driving financial inclusion in the country will be further enhanced.

Amongst its many benefits, FGNSB would provide opportunity to all citizens, irrespective of income level, to contribute to national development, deepen the national savings culture; enable all citizens participate in and benefit from the favourable returns available in the capital market as well as diversify investment options for people and funding sources for the government.

Chief Executive, Stanbic IBTC Stockbrokers Limited, Mrs. Titi Ogungbesan, stated that subscription for the Bond can be made through Stanbic IBTC Stockbrokers, as the sole Government Stockbroker to the Federal Government bond; distribution and receiving agent for the retail savings bond. This means that both current and prospective clients can access the product at any Stanbic IBTC Bank branch nationwide to subscribe to the auction or submit their completed forms.

“Stanbic IBTC would continue to partner with government and other stakeholders to achieve sustainable economic development, including the deepening of the Nigerian Capital Market, “said Ogungbesan.

The positioning and transformation of Nigeria’s bond market into a vibrant investment window, she added, requires the collaboration of all stakeholders and reiterated the organization’s commitment to facilitate stability and growth of the Nigerian Capital Market, via confidence-building initiatives and leveraging investment opportunities in the market.

She recalled that Stanbic IBTC Stockbrokers Limited was appointed stockbroker to the Federal Government on FGN Bonds as well as primary market maker by The Nigerian Stock Exchange, in a clear affirmation of the company’s ability to deliver on its mandates as well as the Stanbic IBTC Group’s overall leadership in the various market segments.

The listing on The Nigerian Stock Exchange of the Stanbic IBTC ETF 30, an index built on the NSE 30 Index, the SIAML Pension ETF 40, a Pension Index Exchange Traded Fund and the launching of the Stanbic IBTC E-Trade, an online stockbroking platform that allows investors view real-time market information and buy or sell shares on The Nigerian Stock Exchange from anywhere in the world are clear expressions of the Stanbic IBTC Group’s focus on building a strong and vibrant stock market, Ogungbesan said.