DMO opens first FGN savings bond today at Nigeria Stock Exchange
The Federal Government of Nigeria Savings Bond (FGNSB) will open today, Monday, March 13, 2017 at the floor of the Nigerian Stock Exchange
The opening will serve as window of opportunity for Nigerians to harness the huge benefits derivable from retail bonds will unlock from today when subscription will takeoff.
Details gathered weekend from the Debt Management Office (DMO) showed that the offer will run for five days, with subscription forms available through Stanbic IBTC Stockbrokers Limited and in all branches of Stanbic IBTC Bank across the country.
The retail savings bond product will be accessible to all income groups for subscription at N5,000 per unit, with a maximum subscription of N50 million and a tenor ranging from two to three years.
Business Hilights recalls that the Director General, DMO, Dr. Abraham Nwankwo, had hinted during the recent listing of the $1 billion FGN eurobond on the Nigerian Stock Exchange (NSE), that government’s plan is to democratise the bond market by making it easily accessible to most Nigerians.
According to him, promoting retail participation in the bond market, the goal of encouraging an all-inclusive participation in investments and driving financial inclusion in the country will be further enhanced.
Analysts say FGNSB will among other things provide opportunity to all citizens, irrespective of income level, to contribute to national development, deepen the national savings culture, enable all citizens participate in and benefit from the favourable returns available in the capital market as well as diversify investment options for people and funding sources for the government.
Explaining ore on the deal, Chief Executive Officer of Stanbic IBTC Stockbrokers Limited, Mrs. Titi Ogungbesan, said subscription for the bond can be made through Stanbic IBTC Stockbrokers, as the sole government stockbroker to the Federal Government bond; distribution and receiving agent for the retail savings bond. This means that both current and prospective clients can access the product at any Stanbic IBTC Bank branch nationwide to subscribe to the auction or submit their completed forms.
She said “Stanbic IBTC would continue to partner with government and other stakeholders to achieve sustainable economic development, including the deepening of the Nigerian capital market”.
“The positioning and transformation of Nigeria’s bond market into a vibrant investment window, requires the collaboration of all stakeholders and reiterated the organisation’s commitment to facilitate stability and growth of the Nigerian capital market via confidence-building initiatives and leveraging investment opportunities in the market.
Stanbic IBTC Stockbrokers Limited was appointed stockbroker to the Federal Government on FGN Bonds as well as primary market maker by the NSE, in a clear affirmation of the company’s ability to deliver on its mandates as well as the Stanbic IBTC Group’s overall leadership across market segments and beyond.
