The Federal Government has opened application for subscription to the second tranche of its Federal Government of Nigeria Savings Bond (FGNSB). The application list for the second tranche will run till close of business on Friday, April 7, 2017.
GTI Securities Limited, one of the authorised distribution agents for the FGNSB, stated that mobilisation has started for the second tranche, after the successful listing of the first tranche at the Nigerian Stock Exchange (NSE) last week.
The Federal Government had listed the maiden tranche of the FGNSB on the NSE with a promise that the government would continue to issue the savings bond as a regular instrument in the Nigerian capital market.
In the maiden offer of the FGNSB which ran between March 13 and March 17, 2017, total number of subscription was 2,577 bids with total size of N2.067 billion.
The minimum subscription for the FGNSB has been fixed at N5, 000 while the maximum subscription for the new security is fixed at N50 million. The coupon will be paid quarterly while there will be a bullet repayment of the principal at the end of the tenor, otherwise known as maturity date or redemption date.
Speaking at the listing of the 13.01 per cent N2.067 billion Series 1 FGN Savings Bonds 2019 at the NSE in Lagos, Director General, Debt Management Office (DMO), Dr. Abraham Nwankwo, said the FGNSB will become a perpetual instrument of the government with the overreaching aim of opening up the benefits from the national economic development to the generality of Nigerians.
Nwankwo described the maiden offer as successful citing the spread of the bids with about 95 per cent of the bids from individual Nigerians of average means ranging from artisans to low-income earners across the various geopolitical zones of the country.
He said the maiden offer had successfully achieved the aim of opening up the debt capital market to the retail investors in furtherance of the commitment of the government to ensure inclusive growth.
He reiterated that the FGNSB will be issued every month adding that the listing on the Exchange has provided additional opportunities in terms of ability of the retail investors to recoup their savings whenever they want.
Nwankwo outlined that the FGNSB would help to enhance the savings culture among Nigerians as well as provide all citizens irrespective of income level, an opportunity to contribute to national development while earning decent returns.
Executive director, Nigerian Stock Exchange (NSE), Mr. Haruna Jalo-Waziri, said the FGNSB was an innovative investment offering that caters to the retail segment of the Nigerian capital market.
He said the successful launching of the first tranche underpinned the efforts by the Federal Government to continue to work with stakeholders to deepen the capital market while delivering value to investors at all income levels.
