This is to inform you that the Federal Government of Nigeria Savings Bonds can be bought and sold every day like ordinary stocks starting from a min. investment of N5,000 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 or equal to 12 months, for example FGS2019S1, FGS2019S2, FGS2019S4, FGS2019S6, FGS2019S8 & FGS2019S10 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;
- Interest rate: 9.5% – 14.5% p.a
- TTM (time-to-maturity): 7 months – 36 months;
- Purchase/Sales Sizes: Minimum order of NGN 5,000 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 !!!
May-2018 inflation fell further to 11.61% while June-2018 inflation forecast is a further fall to within 10.84% – 11.10%. Average FGN T-bills’ & FGN T-bonds’ secondary market yields stabilized @ 11.5% and @ 13.85% respectively on the FMDQ thus confirming the complete normalization (bullish) of the local NGN yield curve.
July-2018 ”forecasted” average yield of FGN T-bill, 91-days on the PMA (Primary Auction) is btw 10.0% – 10.5% p.a. and on the FMDQ bond secondary market is btw 12.5% – 13.0% p.a. while the last PMA of N5.85bln of FGN T-bills, 91-days was executed again at a rate of 10% p.a
N.B: Take note that 91-day FGN T-bills have similar interest payment structure to the 2-3 yrs FGN S-Bonds. Invest in FGN S-bonds only for savings purposes, please do not speculate with them !!!
Based on the above recommendations and in order to maintain it’s FGN S-bonds market maker role, our ARMF Bond Portfolio (a typical closed private fund) is providing the following product options to potential savings bonds clients:
Product Option #1: FGN S-Bonds Swap Offer To TRW Stockbrokers’ Bond Clients Only (Under An Urgent Sales Mandate Request):
If You have FGN S-bills with code FGS2019xx (where TTM remains 12 months or less) with coupon >12.5% p.a 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 clean price of N900.00 per bill for FGS2019xx S-bills with/without Your purchase mandate to use Your sales cash consideration to purchase FGS2020xx/FGS2021xx S-bonds once available on the secondary market.
If the coupon of the FGN S-bills with code FGS2019xx (where TTM remains 12 months or less) is <12.5% p.a then our ARMF Bond Portfolio can offer a max. bid clean price of N850.00 per bill.
Product Option #2: Additional Proposal To Fellow Stockbrokers:
If a stockbroker is already marketing the FGN Savings Bonds to it’s retail clients via the DMO primary auction every month and these clients want to sell urgently, our ARMF Bond Portfolio can purchase small and/or large volumes of pre-negotiated FGN T-bonds & FGN S-bonds (via secondary market transactions) from the stockbroker and/or it’s clients.
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 N4.00 for it’s trade alert;
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: email@example.com and/or live during trading hours via skype #ID: respartner): Fixed Income Sales.
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .