This is to inform you that the Federal Government of Nigeria Savings Bonds can be bought and sold every day like ordinary stocks for minimum investment of N1,000 thereby having a better & active control on Your savings plan.
Definition: FGN Savings Bills (FGN S-Bills) are FGN Savings Bonds with TTM less than 12 months, for example March-2018 Issue – FGS2019S1, April-2018 Issue – FGS2019S2 & May-2018 Issue – FGS2019S4 are now S-Bills…
The Key Features of FGN Savings Bonds Bought On Secondary Market are as follows:
– Coupon payments: Quarterly (interest payments 4x in a year) with initial coupon payment depending on the FGN S-bond’s coupon program thus your first coupon payment can be paid in less than 91 days;
– TTM (time-to-maturity): 10 months – 36 months;
– Purchase/Sales Sizes: Minimum order of NGN 1,000 with additional multiples of NGN 1,000
TRW Stockbroker Investment Recommendation:
Take note that the best future predictor of Your bond yield (quarterly interest income flow) is your initial coupon level so please try to attain a higher coupon level for Your bond investments. For example, a 13% p.a coupon is greater than a 10% p.a coupon !!!
April-2018 inflation fell further to 12.48% while May-2018 forecast to fall to 11.28%. Last week, average FGN T-bills’ & FGN T-bonds’ secondary market yields stabilized @ 12.8% and @ 13.3% respectively on the FMDQ thus yields maintained the new bearish trend. The ”forecasted” average yield of FGN T-bill, 91-days on the PMA (Primary Auction) for May-2018 is 10.25% p.a. while the last PMA of N3.36bln of FGN T-bills, 91-days was again executed at a rate of 10% p.a
N.B: Take note that 91-day FGN T-bills are similar in structure to the 2-3 yrs FGN S-Bonds. Invest in FGN S-bonds only for savings purposes, please do not speculate with them !!!
FGN S-Bonds Swap Offer To TRW Stockbroker Bond Clients Only:
If You have FGN S-bills with code FGS2019xx (thus TTM remains 12 months or less) and would want to shift to FGN S-bonds with code FGS2020xx/FGS2021xx (thus TTM remains 2 – 3 yrs), our ARMF Bond Portfolio can offer a max. bid price of N900.00 per bill for FGS2019xx bills as far as You mandate us to use Your sales cash consideration to purchase FGS2020xx/FGS2021xx bonds once available on the secondary market.
TRW Stockbroker Transaction Fee Policy:
Fixed income trades of the bond segment of the NGSE trading platform are subject to the following term(s):
– transaction fee of 1% of total consideration will be charged for both “Sell” and/or “Buy” transaction(s) while CSCS will charge 0.0001%;
Caution – selling bonds on the secondary market before maturity, can either incur capital loss or capital gain !!!!
Should you require further information on how to get the best (and higher) coupon for Your FGN S-bonds purchase, please contact directly Ekwueme Mike Anyadibe (080 6656 4748 and/or e-mail: firstname.lastname@example.org): Fixed Income Sales.
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .