The FGN Savings Bond for May 2017 has commenced. The details are as follows;
ISSUANCE
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MATURITY
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2 Year FGN Savings Bond
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May 17, 2019 : Coupon 13.189%
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3 Year FGN Savings Bond
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May 17, 2020: Coupon 14.189%
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Opening Date
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Monday, May 8, 2017
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Closing Date
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Friday, May 12, 2017
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Settlement Date
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Wednesday, May 17, 2017 (this is the date the bonds will be credited into your CSCS Account domiciled with your broker)
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Units of Sale
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N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.
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Interest Payment
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Quarterly
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Redemption
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Bullet payment on the maturity date
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Purpose
- To deepen the national savings culture.
- To provide opportunity to all citizens irrespective of income level to contribute to National Development.
- To enable all citizens participate in and benefit from the favorable returns available in the capital market.
- To diversify funding sources for the Government.
Benefits
- Interest income is paid quarterly directly into bond holder’s account.
- The Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.
- Good for savings towards retirement, marriage, school fees, house projects, etc.
- Safety: backed by the full faith and credit of the Federal Government of Nigeria
Liquidity
The Bond will be listed on the Nigeria Stock Exchange for trading and provides liquidity for investors who want to exit before maturity
Subscription Mode
Investors are to subscribe through stockbroking firms trading on the floor of The Nigerian Stock Exchange (NSE) and accredited by the DMO to act as Distribution Agents. (Please visit www.dmo.gov.ng for the list of accredited Stockbroking Firms).