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.
How To Invest In FGN Savings Bonds Via NGSE Secondary Bond Market:
The Nigerian Stock Exchange serves as an active secondary market for both FGN, State, Corporate, Sukuk, Green & Eurobond bonds, thereby providing liquidity to retail investors who wish to buy bonds or redeem their capital before maturity by selling their respective bonds.
Via TRW E-Trader Platform, active direct market access (DMA) to bond trading on the NGSE secondary market is available thus you can buy/sell daily FGN Savings Bonds remotely on your desktop/laptop/smartphone.
Alternative option: send us a ‘FGN S-Bonds’ purchase/sales mandate via e-mail with Your evidence of payment, deposit or transfer into any of our designated bank accounts below.
Account Name: TRW STOCKBROKERS LIMITED
Bank Acct. No. Branch
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 FGN Savings Bonds Bought On Secondary Marketare 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): 1 – 3 years;
– Purchase/Sales Sizes: Minimum order of NGN 1,000 with additional multiples of NGN 1,000
The Key Benefits of the FGN Savings Bonds From The Secondary Market Are:
– Capital safety: Investments are backed by the Federal Government of Nigeria, and so can be referred to as ‘risk-free’ when used as collateral;
– Interest: A higher net interest rate range of 12 – 15% p.a for 1 – 3 yrs TTM FGN Savings Bonds, when compared to interest rate on savings accounts in commercial banks of about 2 – 4% p.a. and/or 10.75 – 11.75% p.a from the DMO Mar-2018 primary market auction for FGN S-bonds;
– Tax free income: Income is tax-free and useful for income/salary tax planning purposes;
Retail clients’ frequently & commonly asked questions include:
1) What do I gain by buying FGN S-bonds from the secondary market instead of via the primary market auction (PMA)?
– We are able to purchase for the interested client FGN S-bonds with higher coupons than that offered during the respective monthly PMA thereby helping him/her to prevent a ‘reducing’ quarterly interest income flow.
2) Will I pay more for such FGN S-bonds as they have already accumulated interest?
3) Do I have to be a TRW Stockbrokers’ client to buy from the secondary bond market?
– Preferably yes, but not necessarily, simply get Your stockbroker to contact us and we both will arrange the inter-broker deal at a pre-negotiated price per bond.
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 14% p.a coupon is greater than a 11% p.a coupon !!!
Savvy investors should consider a portfolio strategy of taking monthly/quarterly profits from their equity investments and re-investing them in FGN S-Bonds in order to re-balance their portfolios proportionally over time. Please ignore the temptation to over-invest in equities during a bull market.
Jan-2018 inflation fell further to 15.13% while Feb-2018 is forecasted to fall to 14.15%. Last week, average FGN T-bills’ & FGN T-bonds’ market yields stabilized @ 13.9% and @ 13.8% respectively on the FMDQ. The ”forecasted” average yield of FGN T-bill, 91-days on the PMA for Mar-2018 remains @ 11.50% p.a. but the last N12.99bln FGN T-bills PMA (primary auction) was executed at a rate of 11.85% 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 !!!
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: email@example.com): Manager-In-Charge Of Fixed Income Sales.
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .