The Federal Government of Nigeria Savings Bond Primary Market Offer/Auction (PMA) for December 2019 opens on the 2nd of Dec-2019 and will remain open for five days till the 6th of Dec-2019. Subsequently, the Debt Management Office has announced that the bonds will be offered at the following rates:
2-Year FGN Savings Bond due December 2, 2021 @ 9.091% p.a
3-Year FGN Savings Bond due December 2, 2022 @ 19.092% p.a
Features of the FGN Savings Bond:
- Tenor 2 and 3 years
- Coupon 9.091% p.a for 2-year tenure, 10.091% p.a for 3-year tenure…..both are higher than the coupon attained at the last DMO PMA of 91-day FGN T-bills @ 6.5% p.a
- Coupon Payments Quarterly (4 times a year)
- Subscription Amount Minimum: N5,000
- Maximum: N50,000,000
- Additional Subscription In multiples of N1,000
Secondary Market Tradable on the Nigerian Stock Exchange (NGSE)
Subsequent Offers – first week of every month
Tax on Interest – Interest is tax free
Capital Repayment – Bullet, Insured & Guaranteed
Offer Period : 2nd – 6th December 2019
Investors can now enjoy upfront quarterly interest payment(s) on their savings when they invest in FGN Savings Bonds via TRW Stockbrokers (similiar to upfront interest paid by commercial banks on 91-day, FGN T-bills).
For a min. investment of N100,000 – a bond investor who purchases FGN S-bonds during the Dec-2019 DMO primary market auction (PMA) will be paid upfront 90% of his/her expected quarterly interest by our ARMF Bond Portfolio directly into the client’s bank acct or into the client’s CSCS trading acct with TRW Stockbrokers as mandated.
ARMF Bond Portfolio will apply a funding charge of 10%. The process will revolve every quarter beginning till bond maturity unless the client makes an urgent sales mandate before maturity. The purchased FGN bonds are kept under the custody (lien) of TRW Stockbrokers Limited and thus can be leveraged to obtain collaterized margin loans for additional equity investments.
For example, a successful primary auction bid of N100,000 investment in a 3-yr FGN S-bond this Dec-2022 DMO PMA (FGS202265: 10.091% FGNSB 11-DEC-2022) would receive (at the beginning of every quarter) a gross upfront quarterly interest of N2,522.75 minus a 10% funding charge of N252.28 => a net upfront quarterly interest of N2,270.47
Should you require further information on how to get the best (and higher) coupon for Your FGN bonds purchase, please contact directly Ekwueme Mike Anyadibe – Head Fixed Income Sales (080 6656 4748 and/or e-mail: firstname.lastname@example.org; email@example.com and/or live during trading hours via skype #ID: respartner).
N.B: Invest in FGN bonds only for savings purposes, to speculate use margin loans!
TRW BOND TEAM – TRW Stockbrokers Limited,
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .
Email: firstname.lastname@example.org; email@example.com