This is to inform you that the Federal Government of Nigeria Savings Bond offer(s) for the month of July-2017 will openat 8.00 a.m on the 7th August’ 2017 (Monday) and remain open for five working days till 12 noon on the 11thAugust’ 2017 (Friday) with settlement date: 16th August’ 2017. It consists of 2 tenors:
2-year FGN Saving Bonds August 16th’ 2019 at coupon rate : 13.535% p.a
3-year FGN Saving Bonds August 16th’ 2020 at coupon rate : 14.535% p.a
The Nigerian Stock Exchange will serve as an active secondary market for the bonds, thereby providing liquidity to retail subscribers who wish to redeem their capital before maturity.
On TRW E-Trader platform, secondary market bond trading is active thus you can buy/sell daily your FGN S-Bonds remotely on your desktop/laptop/smartphone. Alternative: send us a ‘FGN S-Bonds’ purchase/sales mandate via e-mails remains a normal option.
To invest in the FGN Savings Bond via Primary Market Auction:
Download and complete the attached subscription form. Thereafter, scan and send a copy of the completed form to (TRW e-mail address) with evidence of payment, deposit or transfer into any of our designated bank accounts below.
Account Name: TRW STOCKBROKERS LIMITED
Ecobank Plc 4012010513 Amuwo Odofin
Guaranty Trust Bank Plc 0002959639 Tinubu Street
United Bank for Africa Plc 1003609157 Iddo
Zenith Bank Plc 1011907867 Airport Road
First Bank Nigeria Plc 2008040747 Marina
Access Bank Plc ‘0000132156 Broad Street
Sterling Bank Plc 0000600160 Martins Street
Fidelity Bank Plc 4010952844 11C Willoughby street Ebute Metta
Diamond Bank Plc 0025553793 34, Ladipo Oluwole street Ikeja
The Key Features of the Bond(s) are as follows:
– Auction date: Auctions will be initiated on the 1st Monday of every month if it was not a public holiday;
– Coupons: The coupon rates will be announced by the DMO before each issuance;
– Coupon payments: Quarterly (interest payments 4x in a year);
– Tenor: 2 – 3 years;
– Transaction sizes: Minimum subscriptions of NGN 5,000 with additional multiples of NGN 1,000 and maximum subscriptions of NGN 50,000,000.
The Key Benefits of the programme are:
– Capital safety: Investments are backed by the Federal Government of Nigeria, and so can be referred to as ‘risk-free’;
– Interest: Expect a comparatively & relatively attractive net rate range of 13 – 15% p.a for 2 – 3 yrs tenor FGN Savings Bonds, when compared to interest rate on savings accounts in commercial banks of about 30% of MPR or 4.2% p.a. A premium difference of 9 – 11% p.a (per annum);
– Tax free income: Income is tax-free;
– Investment returns: Frequent payment of interest on capital (quarterly payments).
TRW Stockbroker Investment Recommendation:
If you miss any your quarterly coupon (interest) payments or did not get the expected bank sms alert(s), kindly inform us accordingly.
Though we continue to be within a short-term bullish Nigerian financial market environment with positive FPIs forex inflow, we maintain our advice to clients to continue to maintain their fixed income allocation accordingly to meet their respective long-term investment targets by bidding for the August-2017 FGN Saving Bonds and if successful, we recommend to hold your respective FGN S-bonds till maturity. Savvy investors should consider to take profits from equities and re-invest in FGN S-Bonds in order to re-balance their portfolios proportionally.
Av. 91-day NTB (FGN T-bills) yield at CBN PMAs (Primary Market Auctions) was 13.89% in July-2017, less than13.97% in June-2017 but higher than 13.60% in May-2017. The forecasted average for Aug-2017 is 13.5%. In 1-wk-Aug-2017 CBN PMA, CBN sold N23.2bln of 91-day NTB at a lower 13.4% compared to DMO’s 13.535% – 14.535% on the Aug-2017 FGN Saving Bonds PMA => 3-yr tenor FGN S-Bond due 16th August-2020 @ 14.535% seems to be the better deal.
Caution – selling on the secondary market before maturity, can either incur capital loss or capital gain !!!!
An investor does not have to wait for the monthly primary auctions to buy FGN S-Bonds any more. If you have not installed the TRW E-Trader Platform, then simply send us a mandate via e-mail.
TRW Stockbroker Transaction Fee Policy:
Fixed income trades of the bond segment of the NGSE trading platform can be subject to the following terms:
– Primary Auction: There are no charges for purchases made through the primary auction.
– Secondary Market: A transaction fee of 1% of total consideration will be charged for additional NGSE Buy / Sell transaction(s) while CSCS will charge 0.0001%;
Should you require further information, please contact us via the following channels. We will attend to it promptly.
Reception Phone(s): during working hours, Monday through Friday on the following lines: +234-17646689, +234-1-2710224, 0805-810-4210 (24 hours ), 0803-716-1440 (24 hours), 0805-6172779 (24 hours),
- Ekwueme Mike Anyadibe (080 6656 4748): Manager-In-Charge Of FGN Savings Bond Sales
- Tochukwu Ufudo (070 6684 6097)
- Bakare Musbau (080 5616 0889)
Corporate Office: 62/64 Campbell Street (Kajola House) 4th & 5th Floor, Lagos Island, Lagos State – NIGERIA…
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .