FGNSB five days’ auction closes October 13
The ongoing Federal Government of Nigeria’s savings bond (FGNSB) auction, which opened on Monday, October 9th, 2017, is billed to close on Friday, October 13th after a five days offering.
FGN introduces Savings’ Bond for retail investors, which promises competitive returns, as FGNSB is targeted at retail investors and lower income earners to encourage savings and earn more income compared to traditional savings’ accounts.
The DMO is currently offering FGNSB with the following titles: 2-Year FGN Savings Bond due October 18, 2019 with 12.059 per cent coupon per annum; and a 3-Year FGN Savings Bond due October 18, 2020, with 13.059 per cent coupon per annum.
For interested investors, settlement date is fixed for October 18, 2017, while quarterly coupon payment dates are January 18, April 18, July 18, October 18.
The offer allows investors subscribe at the offer rate of N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000 million.
Daily Times Nigeria, recalls that FGN opened the retail bond issuance on 13th March, 2017; and closed on 17th March; settlement date was 22ND March.
Meanwhile, it has been gathered that the performance of the bonds’ offer in the market has continued to decline, as appetite of investors continued to wane due to illiquidity challenge.
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